The global Open Radio Access Network (O-RAN) market will grow to $22.5 billion by 2028, with a CAGR of 85 percent from 2020 to 2028, because of the rising demand for high-speed internet and the surge of 5G technology adoption, according to Kenneth Research.
With the growing demand for 5G technology worldwide, the need for O-RAN is expected to increase significantly, and in turn, drive the growth of the global O-RAN market in the coming years, according to Kenneth Research, which has recently released a report on “Open Radio Access Network Market: Global Demand Analysis & Opportunity Outlook 2020-2028.”
“A major challenge that lies with the telecom operators is that as they shift towards 5G services, they have to evolve accordingly from closed traditional networks to open radio networks,” Kenneth Research wrote.
By the end of 2025, telecom operators in North America, Greater China, Europe, and the Asia Pacific are expected to spend close to $280 billion, $170 billion, $150 billion, and $145 billion, respectively, for 5G networks. Moreover, the investment of 5G as a share of total capital expenditure in these regions by the end of the same year is expected to reach about 95 percent, 85 percent, 90 percent, and 70 percent respectively.
“As a result, telecom operators around the world are stretching their budget for investments in the 5G technology,” Kenneth Research wrote. The lower costs of O-RAN technology will help telecom operators budget for 5G buildouts.
By J. Sharpe Smith, Inside Towers Technology Editor
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