The global demand for 5G RAN is expected to rise at a healthy CAGR of 28.7% during the years 2022 and 2032 to reach a net worth of US$ 34.2 billion in 2032, according to a new report from Future Market Insights.
5G RAN Market Cellular devices utilise radio waves in order to communicate. These devices convert the user’s voice and mobile data into digitalised signals sent as radio waves. Radio Access Networks (RANs) are implemented to ensure the proper functioning of cellular devices and connect them to networks or the Internet.
RANs utilise radio wave transceivers to connect the device to the cloud infrastructure. Most transceivers or base stations are in connection via fibre backhaul to the mobile core network. RANs provide radio communication access and assists coordinative network resources across all wireless devices.
Wireless devices connect to cellular networks via Long Term Evolution (LTE) or 5G New Radio (NR) connectivity. Silicon chips in the core networks and cellular mobile devices complement the functionalities of RAN.
Future Market Insights says RANs have evolved significantly over the past years as cellular networking technology reaches 5G. Today, 5G RAN technology has the ability to support Massive Multiple Input Multiple Output (Massive MIMO) technology, multi-band carrier aggregation, vast spectrum bandwidths, and more.
According to the report, infrastructure has always been the top priority of countries with regard to strategic investments. The telecom sector is rapidly growing with governments making huge investments in IT infrastructure. National governments and public organizations are making huge investments in the betterment of national telecom infrastructures. This trend is estimated to propel the adoption of 5G RAN across every regional market.
Strategic investments in the telecom sector help governments harness the potential to create employment and drive the economic growth of countries. Ongoing advancements in 5G technology have great potential to transform the telecommunication industry vertical and enhance the user experience for end-users.
Many enterprises operating in the telecommunication industry across the globe are focusing on upgrading their existing networking infrastructure to 5G networking infrastructure. This will help such telecom service providers offer services with high performance and high-speed connectivity.
Thus, huge investments targeted at upgrading national telecom infrastructure is the key factor estimated to boost the adoption of 5G RAN technology during the forecast period.
Impact of COVID-19 Pandemic Outbreak on 5G RAN Market
The report says rising infections across the globe are forcing national governments to declare nationwide lockdowns. These lockdowns are restricting the large-scale deployment of 5G technology on a global level. Deployment of 5G technology in key industry verticals, like Automotive, Transportation, and Logistics, was estimated to boost the adoption of 5G RAN solutions and services.
Lockdowns legislated by national governments to combat the spread of infections have restricted 5G deployment. Government and public sector and healthcare industry verticals are estimated to record a spike in adoption rates. However, the overall growth rate is estimated to carry on undeterred with consistent adoption of 4G LTE.
5G RAN markets in North America and Europe are leading all other regional markets on a global level. The strong market share may be attributed to the high presence of 5G technology solutions and service providers in the region.
Initiatives and investments deployed by government organisations are also propelling the adoption of 5G technology, thus driving the 5G RAN market. Advancements in 5G technology for automotive and smart transportation are playing a key role in propelling 5G RAN market growth in European economies like Germany and the U.K.
The 5G RAN market in the Southeast Asia Pacific region is projected to register a strong growth rate over the forecast period. 5G RAN markets in Latin America and the Middle East and Africa region will be slower to gain traction during the forecast period, as LTE Advanced technology is still gaining diffusion in those regional markets.