5G Radio Access Network (RAN) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Hardware, Software, Services), By Architecture Type (CRAN, ORAN, VRAN), By Deployment (Indoor, Outdoor), By End-use (Telecom Operators, Enterprises), Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.88 Billion
CAGR (2026-2031)	19.62%
Fastest Growing Segment	Hardware
Largest Market	Asia Pacific
Market Size (2031)	USD 55.31 Billion

Market Overview

The Global 5G Radio Access Network (RAN) Market will grow from USD 18.88 Billion in 2025 to USD 55.31 Billion by 2031 at a 19.62% CAGR. The Global 5G Radio Access Network (RAN) Market comprises the essential radio interface infrastructure, such as base stations and massive MIMO antennas, that connects user devices to the mobile core network using New Radio technology. The primary drivers propelling growth include the exponential surge in mobile data traffic necessitating increased network capacity and the critical industrial demand for ultra-low latency connectivity to support automation. Furthermore, aggressive government mandates and spectrum allocations globally are enforcing rapid infrastructure deployment, functioning as fundamental market propellants distinct from technological shifts.

However, the substantial capital expenditure required for network densification and the technical complexity of migrating to Standalone architectures present a significant barrier to expansion. This operational difficulty creates a noticeable lag in the commercialization of advanced network capabilities. According to the Global mobile Suppliers Association, in November 2024, while 151 operators were investing in 5G standalone access, only 64 had successfully launched these networks in public environments, highlighting the deployment challenges impeding broader market scalability.

Key Market Drivers

The exponential surge in mobile data traffic and high-bandwidth consumption serves as the primary catalyst for the Global 5G Radio Access Network (RAN) Market. As consumers and enterprises increasingly utilize data-intensive applications such as high-definition video streaming and cloud gaming, network operators are compelled to densify their infrastructure and integrate massive MIMO technologies to sustain throughput. This pressure to accommodate escalating loads is quantified by recent traffic metrics. According to Ericsson, June 2024, in the 'Ericsson Mobility Report', global mobile network data traffic grew 25 percent between the first quarter of 2023 and the first quarter of 2024, reaching 145 exabytes per month. Such consistent volume expansion necessitates continuous upgrades to RAN hardware to prevent network congestion and maintain service quality standards.

Concurrently, the rapid expansion of private 5G networks for industrial automation is diversifying revenue streams and technical requirements for RAN vendors. Industries are deploying dedicated radio infrastructure to ensure ultra-low latency and security for mission-critical operations, distinct from public networks. According to the Global mobile Suppliers Association, May 2024, in the 'Private Mobile Networks – Market Update', the number of organizations deploying private mobile networks globally reached 1,427, reflecting a robust industrial appetite for cellular connectivity. This shift requires specialized radio equipment tailored for enterprise environments, broadening the market's scope. Highlighting the scale of adoption driving this equipment demand, according to the GSMA, in 2024, total global 5G connections surpassed 1.6 billion by the end of 2023, underscoring the massive addressable market for radio access infrastructure.

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Key Market Challenges

The substantial capital expenditure required for network densification acts as a significant restraint on the Global 5G Radio Access Network Market. Operators face immense costs associated with acquiring new physical sites, installing additional base stations, and managing the increased power consumption of advanced radio equipment. This financial burden creates a cautious investment environment where carriers must carefully balance the need for coverage against available capital. Consequently, many network providers delay the purchasing of essential radio interface infrastructure, which directly slows the revenue cycle for hardware suppliers and limits the overall expansion of the market.

This economic pressure is evident in the sheer scale of investment required to maintain competitiveness and meet infrastructure goals. According to the GSMA, in 2024, mobile operators are projected to invest 1.5 trillion United States dollars in their networks between 2023 and 2030, with over 90 percent of this expenditure directed specifically toward 5G deployments. This heavy concentration of capital requirements forces operators to prioritize only the most profitable urban zones for upgrades, thereby leaving vast geographical areas with slower deployment rates and hampering the comprehensive growth of the radio access network sector.

Key Market Trends

The Integration of AI and Machine Learning for Network Automation is becoming a pivotal trend as operators seek to manage the escalating complexity of disaggregated radio environments. By embedding intelligent algorithms directly into the Radio Access Network, providers can automate routine maintenance, optimize spectral efficiency in real-time, and implement predictive fault resolution, thereby significantly reducing operational expenditures. This technological shift towards autonomous network management is evidenced by the growing financial commitment from the industry to upgrade legacy systems. According to NVIDIA, February 2024, in the 'State of AI in Telecommunications 2024' report, 66 percent of surveyed telecom professionals reported that their organization's budget for AI infrastructure was set to increase in 2024, underscoring the strategic pivot towards AI-driven architectures.

Simultaneously, the Strategic Migration to Standalone 5G Core Infrastructures is gaining momentum as carriers aim to unlock the full potential of next-generation connectivity beyond simple enhanced mobile broadband. Moving away from Non-Standalone architectures that rely on 4G cores allows operators to deliver differentiated services such as network slicing and ultra-reliable low-latency communications, which are essential for advanced enterprise applications. Despite current deployment hurdles, the long-term trajectory points towards a comprehensive transition to this architecture to monetize new use cases. According to Ericsson, November 2024, in the 'Ericsson Mobility Report', almost 60 percent of the 6.3 billion global 5G subscriptions forecast by the end of 2030 are expected to be 5G Standalone subscriptions, highlighting the industry's irreversible shift towards this advanced framework.

Segmental Insights

The Hardware segment currently demonstrates the fastest growth within the Global 5G Radio Access Network Market due to the extensive requirement for physical infrastructure during the initial deployment phase. Telecommunication operators are actively investing in essential components such as macro cells, small cells, and advanced antenna systems to establish necessary network coverage and capacity. This demand is further amplified by the need for network densification to support high-frequency bands, compelling service providers to procure and install substantial volumes of equipment to upgrade legacy sites and expand connectivity reach.

Regional Insights

Asia Pacific commands the largest share of the Global 5G Radio Access Network market due to extensive infrastructure development in key economies like China, Japan, and South Korea. This expansion is heavily supported by government initiatives, such as the strategic directives from China’s Ministry of Industry and Information Technology to accelerate base station deployment. Additionally, the region benefits from a strong local manufacturing ecosystem that facilitates rapid network upgrades. High consumer demand for improved connectivity further incentivizes telecommunication providers to prioritize wide-scale network implementation across these populated markets.

Recent Developments

• In December 2024, Mavenir and Boost Mobile announced the successful completion of an industry-first inter-vendor Open RAN handover on a live commercial network. This breakthrough involved the seamless transfer of a 5G data session between radio units from different vendors using the 3GPP Xn interface. The achievement, which took place on Boost Mobile's 5G Open RAN network in the United States, validated the interoperability and maturity of open network architectures. The collaboration demonstrated that disaggregated RAN components can work effectively together, supporting the broader industry shift towards flexible, multi-vendor telecommunications infrastructure.
• In October 2024, Ericsson launched a new suite of 5G Advanced software products designed to improve network performance and operational efficiency for communications service providers. The seven new solutions, compatible with Open RAN, Cloud RAN, and purpose-built RAN architectures, utilize artificial intelligence to enable real-time automation and intent-driven network management. These innovations focus on key areas such as differentiated connectivity, energy efficiency, and outdoor positioning. The company stated that the software would be commercially available starting in late 2024, offering operators tools to monetize programmable networks.
• In July 2024, Nokia secured a multi-year agreement with MEO to modernize the Portuguese operator's Radio Access Network (RAN) and enhance its 5G capabilities. Under this contract, Nokia committed to supplying its 5G AirScale portfolio, which is powered by energy-efficient ReefShark System-on-Chip technology. The deployment includes Massive MIMO antennas, baseband units, and remote radio heads designed for both indoor and outdoor scenarios. This collaboration aims to replace existing 2G, 4G, and 5G infrastructure, ensuring superior performance and energy efficiency while supporting the operator's digital transformation goals.
• In February 2024, Ericsson and AT&T achieved a significant milestone in their strategic Open RAN collaboration by completing a successful Cloud RAN call on live commercial 5G spectrum. This breakthrough, executed on AT&T's network in Texas, utilized Ericsson's commercial 5G Cloud RAN solution, which includes virtualized Central Units (vCU) and virtualized Distributed Units (vDU). The event marked a crucial step in the deployment of open, programmable networks, validating the performance of virtualized radio access network technology in a real-world environment as part of their $14 billion strategic agreement.

Key Market Players

• Nokia Corporation
• Ericsson AB
• Huawei Technologies Co., Ltd.
• Samsung Electronics Co., Ltd.
• ZTE Corporation
• NEC Corporation
• Cisco Systems, Inc
• Fujitsu Limited.
• CommScope, Inc.
• VMware, Inc.

By Component	By Architecture Type	By Deployment	By End-use	By Region
Hardware Software Services	CRAN ORAN VRAN	Indoor Outdoor	Telecom Operators Enterprises	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global 5G Radio Access Network (RAN) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 5G Radio Access Network (RAN) Market, By Component:

• Hardware
• Software
• Services

• 5G Radio Access Network (RAN) Market, By Architecture Type:

• CRAN
• ORAN
• VRAN

• 5G Radio Access Network (RAN) Market, By Deployment:

• Indoor
• Outdoor

• 5G Radio Access Network (RAN) Market, By End-use:

• Telecom Operators
• Enterprises

• 5G Radio Access Network (RAN) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE