Cloud-Ran Market Expected to Grow at a Cagr of 45.9% by 2020 - Research Report by Hexa Research
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- Date Submitted: 08/22/2016 04:38 AM
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Cloud-RAN (Radio Access Network) is also known as centralized-RAN or C-RAN. It facilitates the expansion of mobile networks by addressing issues pertaining to their capacity and coverage. C-RAN reduces operational expenses and offers better network security. It also makes the network agile and flexible. Apart from these, Cloud-RAN also enables software control and management, and network self-configuration.
It does this through SDN - Software Defined Networking, and NVF - Network Functions Virtualization. China Mobile Communications Corporation was the initiator of Cloud-RAN network architecture. It introduced Cloud-RAN in April 2010 at its research institute. The company estimates total ownership costs to reduce by 30-60 percent due to the rising adoption of Cloud-RAN.
Growth Drivers
The Cloud-RAN market was worth USD 1.7 billion in 2013. It is expected to grow at a CAGR of 45.9% over the next five years. By 2018, the total market revenues will reach approximately USD 11.5 billion.
Network architectures that support efficient operations, reduced power consumption, agility, and reliability are indispensible to modern businesses. Cloud-RAN’s centralized processing greatly reduces the number of base station sites. Cloud-RAN architecture improves spectrum efficiency. Its load-balancing capability permits the efficient handling of non-uniform data traffic.
These advantages are contributing to the growth of the Cloud-RAN market. Rapid developments in telecommunications technology is also a critical market driver. The widespread use of tablets and smartphones all over the world coupled with high broadband penetration also proves favorable for the market. More than 88% of the North Americans living in urban areas uses either a smartphone, or a tablet, or both.
Increasing data traffic that generates the need for improved and more affordable communications network will fuel the market. Mobile data traffic in the world increased by more than 80% in 2013. By 2018,...
It does this through SDN - Software Defined Networking, and NVF - Network Functions Virtualization. China Mobile Communications Corporation was the initiator of Cloud-RAN network architecture. It introduced Cloud-RAN in April 2010 at its research institute. The company estimates total ownership costs to reduce by 30-60 percent due to the rising adoption of Cloud-RAN.
Growth Drivers
The Cloud-RAN market was worth USD 1.7 billion in 2013. It is expected to grow at a CAGR of 45.9% over the next five years. By 2018, the total market revenues will reach approximately USD 11.5 billion.
Network architectures that support efficient operations, reduced power consumption, agility, and reliability are indispensible to modern businesses. Cloud-RAN’s centralized processing greatly reduces the number of base station sites. Cloud-RAN architecture improves spectrum efficiency. Its load-balancing capability permits the efficient handling of non-uniform data traffic.
These advantages are contributing to the growth of the Cloud-RAN market. Rapid developments in telecommunications technology is also a critical market driver. The widespread use of tablets and smartphones all over the world coupled with high broadband penetration also proves favorable for the market. More than 88% of the North Americans living in urban areas uses either a smartphone, or a tablet, or both.
Increasing data traffic that generates the need for improved and more affordable communications network will fuel the market. Mobile data traffic in the world increased by more than 80% in 2013. By 2018,...