SNS Research has published a new report, The vRAN (Virtualised Radio Access Network) Ecosystem: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts.
vRAN (Virtualised Radio Access Network) refers to a RAN or Radio Access Network implementation where some or all baseband functions are separated from the remote radio unit and run as VNFs (Virtualised Network Functions) on commodity hardware. This approach results in multiple operational benefits including, but not limited to, TCO (Total Cost of Ownership) reduction, performance gains and scalability. In addition, vRAN enables mobile operators to future-proof their networks for 5G upgrades.
The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report.
The vRAN market is presently at a nascent stage, according to SNS, with most investments focused on virtualised small cells for targeted greenfield deployments and pilot engagements for macrocell coverage. However, as mobile operators realise the benefits of RAN virtualisation, the market is expected to grow at a compound annual growth rate (CAGR) of approximately 125% over the next three-year period.
SNS Research estimates that by the end of 2020 vRAN deployments will account for a market worth US$2.6 billion. The 220-page report, published this month, contains 86 tables and figures and also presents forecasts for vRAN investments from 2017 till 2030. The forecasts cover multiple submarkets and six regions.
Key questions answered in the report include:
- How big is the vRAN opportunity?
- What trends, challenges and barriers are influencing its growth?
- How is the ecosystem evolving by segment and region?
- What will the market size be in 2020 and at what rate will it grow?
- Which submarkets will see the highest percentage of growth?
- Is centralisation a pre-requisite for vRAN implementation?
- What are the benefits and drawbacks of each baseband functional split option?
- How can vRAN reduce the TCO of RAN deployments?
- How can mobile operators future-proof their RAN investments for 5G upgrades?
- Who are the key market players and what are their strategies?
- What strategies should vRAN solution providers and mobile operators adopt to remain competitive?
The report has the following key findings:
- vRAN investments are expected to grow at a CAGR of approximately 125% over the next three year period. By the end of 2020, SNS Research estimates that vRAN deployments will account for a market worth $2.6 billion.
- At present, most vRAN investments are focused on virtualised small cells for targeted greenfield deployments and pilot engagements for macrocell coverage.
- Mobile operators are exploring multiple baseband functional split options for vRAN implementation, as they seek to ease the transition to 5G networks while reducing fronthaul costs.
- The ongoing 5G race is expected to significantly boost vRAN investments over the coming years. SNS Research estimates that approximately $900 million of all vRAN investments will be directed towards 5G networks by the end of 2020.
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