Open radio technologies are expected to account for up to 15% of the radio access network (RAN) market by 2026, according to a new report from Dell'Oro Group.
The pace of adoption has impressed analysts who believe that Open RAN will not only play a significant role in the rollout of 5G, but also in future generations such as 6G.
Although the report points to healthy traction in several regions, it indicates that Asia-Pacific dominated the early phase of development and will continue to play a leading role for the next five years.
Open RAN Adoption
“The Open RAN movement has come a long way in just a few short years, surprising advocates and skeptics alike,” said Stefan Pongratz, vice president and analyst at Dell'Oro Group.
"Although difficult comparisons will weigh on the market somewhat in the short term, these divergences between greenfields and brownfields are unlikely to leave lasting marks on the long-term outlook."
RAN describes technology such as antennas that transmit data between end user devices like smartphones and the cell site. It is a market traditionally dominated by a few large players offering highly integrated cell sites comprising radio, hardware and software.
This approach has made it difficult for operators to mix and match innovations and has proven to be a significant barrier to entry for smaller providers.
OpenRAN is a vendor-neutral approach with standardized designs that allow multiple companies to provide hardware and software.
Several major telecommunications groups and governments have endorsed OpenRAN, believing it can increase innovation, reduce costs, and reduce reliance on the "big three" Ericsson, Huawei, and Nokia.
Major industry initiatives are underway to commercialize and test Open RAN technologies, with interoperability being a key priority for major operators.
Vodafone recently launched the UK's first mobile OpenRAN site that will carry live 5G customer traffic in Bath and plans to roll out 2700 across Wales and the South West of England by 2027. Meanwhile, Telefónica is targeting 800 sites in four markets, including the UK by 2022 and BT is testing Open RAN in Hull.