What Will Cause the 5G RAN Automation Market Size to Triple by 2029?

Telecom networks are becoming increasingly complex, making it challenging for mobile operators to provide the connectivity services that customers expect. In this Research Highlight, we explore the pivotal role of 5G RAN automation platforms in simplifying telco operations. Moreover, it shares the revenue potential for this booming market.

5G RAN Automation Market Overview

5G Radio Access Network (RAN) automation is gaining momentum as telecom operators around the world aim to improve network efficiency and manage complexity. With the growing adoption of Open RAN and increasing pressures to reduce operational costs, automation solutions for both the core and RAN are vital to operators' strategies. As part of the evolution to more autonomous networks, Service Management and Orchestration (SMO) and RAN Intelligent Controller (RIC) technologies are expected to see significant growth in the coming years.

The global market for 5G RAN automation technologies is set to triple from US$2.2 billion in 2023 to US$6.6 billion by 2029, representing a Compound Annual Growth Rate (CAGR) of 20%. The Asia-Pacific region is expected to lead the market, followed by Europe, which is expected to overtake North America in 2027 due to the large number of Tier One operators upgrading their networks to Open RAN.

“Initial deals for Open RAN automation deployments are likely to follow the same trend as the network deployments, to offload the integration complexity away from operators—the major Open RAN equipment provider is likely to also provide the automation software, incorporating its own applications and third-party applications.” – Larbi Belkhit, Industry Analyst at ABI Research

Identifying the Key Drivers of 5G RAN Automation

The drive for RAN automation in 5G networks is being influenced by several key factors:

• Shift to Autonomous Networks: As operators aim to reach higher levels of autonomy in their networks, automation becomes essential. Operators are focused on advancing from Level 2 and Level 3 autonomy to Level 4, which requires comprehensive upgrades to both core and RAN automation systems.
• Complexity of 5G Networks: With the move to service-based models and cloud-native architectures, 5G networks have become more complex. Managing Service-Level Agreements (SLAs) and Key Performance Indicators (KPIs) manually is increasingly challenging, driving the demand for automated decision-making processes.
• Open RAN Adoption: The transition to Open RAN allows more industry players to innovate, enabling new use cases for operators. This opens the door for more vendors to offer software and services, spurring further adoption of Open RAN technologies.
• Cost Efficiency and Scalability: The growing need for scalable network infrastructure to support a larger number of devices and services is driving the demand for automation tools. These technologies help optimize network operations, reducing the need for manual interventions and cutting operational costs.

Gauging Revenue Opportunities Across the Globe

5G RAN automation tools are experiencing increased demand across regions, with various factors at play.

• Asia-Pacific: The Asia-Pacific region is expected to remain the largest market for 5G RAN automation due to its significant number of cell sites. Automation demand will be driven by the rapid deployment of 5G infrastructure, which will require advanced management and optimization capabilities.
• Europe: Europe is expected to become the second-largest market by 2027. European operators are focusing on upgrading their networks with Open RAN technology, which will drive the adoption of automation solutions at both the core and RAN levels.
• North America: While many Tier One operators in North America already use proprietary automation solutions, Open RAN adoption is starting to gain traction, particularly in greenfield network deployments. This shift will help fuel automation technology growth in the region.
• Latin America and the Middle East & Africa: These regions are emerging as key battlegrounds for both Eastern and Western RAN vendors. Despite existing relationships with Chinese vendors, Open RAN adoption in these areas will continue to grow as new use cases emerge and local regulatory frameworks evolve.

Key Companies

• Samsung
• Ericsson
• Nokia
• Qualcomm
• OREX SAI
• Amdocs

Download the report!

Gain a detailed overview of the latest 5G RAN automation market developments by downloading ABI Research’s 5G RAN Automation Platforms: Commercial Strategies report.