C-RAN Market Set for 28.1% CAGR Growth as Telecom Operators Accelerate 5G Deployments

The global cloud/centralized radio access network (C-RAN) market is on a remarkable growth trajectory, projected to surge from USD 23.9 billion in 2024 to USD 171.7 billion by 2032, expanding at an impressive 28.1% CAGR during the forecast period. This robust growth underscores the accelerating 5G rollouts, increasing adoption of network virtualization, and the rising need for scalable, cost-efficient infrastructure to handle explosive mobile data consumption.

Transforming Telecom Infrastructure for the 5G Era

As mobile data demand and connected device proliferation continue to escalate, telecommunications operators are rapidly transitioning to C-RAN architectures to modernize their networks. This innovative framework centralizes baseband processing while distributing radio units across sites, cutting operational costs and improving network efficiency.

According to the International Telecommunication Union (ITU), more than 50% of the global population will be covered by 5G networks by 2025, creating immense opportunities for advanced infrastructure solutions such as C-RAN. Telecom operators worldwide are leveraging C-RAN to enhance capacity management, reduce latency, and support next-generation applications such as IoT, smart cities, and autonomous systems.

Key Market Growth Drivers

Rising Demand for Energy Efficiency and Green Networking

Telecom operators face growing pressure to minimize carbon footprints while expanding network capacity. C-RAN’s centralized design significantly reduces the number of power-intensive cell sites, lowering energy consumption through shared cooling and optimized resource utilization. This “pooling gain” effect allows operators to dynamically allocate baseband resources, yielding tangible cost and energy savings while supporting net-zero sustainability goals—a key factor in European adoption trends.

Rapid Shift Toward Virtualized and Cloud-Native Solutions

The migration to virtualized C-RAN (vC-RAN) architectures represents a paradigm shift in telecom network design. By decoupling hardware from software, operators can now run network functions on commercial off-the-shelf hardware, reducing vendor lock-in and accelerating service innovation.
Cloud-native implementations enable DevOps practices, continuous integration, and AI-driven automation, enhancing network intelligence and reducing total infrastructure ownership costs by up to 40%.

Market Segmentation Insights

• By Deployment: Outdoor C-RAN systems accounted for ~70% of the 2024 market, driven by applications in stadiums, malls, and parking lots, while indoor deployments are set to expand fastest with rising small-cell installations in offices and high-density venues.
• By Component: Infrastructure dominated in 2024, fueled by massive 5G investments, whereas services—including consulting, maintenance, and design—will grow at the fastest pace as operators seek expertise in managing complex, software-defined environments.
• By Network Type: LTE & 5G networks held 85% of market share, with continued 5G densification paving the way for expanded C-RAN integration.
• By Architecture: Centralized C-RAN remains the dominant model, while virtualized/cloud C-RAN leads future growth, driven by the integration of NFV and SDN technologies.
• By Application: Large public venues such as airports, convention centers, and stadiums led in 2024, while targeted outdoor urban areas will see the highest growth as cities seek resilient high-speed connectivity solutions.

Regional Outlook

North America led the global market with a 35% share in 2024, bolstered by early 5G adoption, strong regulatory support, and major players like AT&T, Verizon, and Ericsson advancing large-scale C-RAN deployments. Government initiatives such as the U.S. ACCoRD project, backed by USD 42 million in funding, are accelerating Open RAN and C-RAN innovation.

Asia-Pacific is forecast to grow at the fastest pace through 2032, driven by massive 5G investments in China, India, Japan, and South Korea. India’s 5G breakthroughs—such as Nokia and Airtel’s record-setting 1.2 Gbps Cloud RAN trial—highlight the region’s rapid digital transformation. China continues to dominate with the world’s largest 5G footprint, powered by China Mobile, China Unicom, and China Telecom.

Competitive Landscape

The C-RAN market remains semi-consolidated, with global leaders such as Huawei Technologies Co. Ltd., Nokia Corporation, Ericsson, ZTE Corporation, and Samsung Electronics Co. Ltd. commanding significant shares. Emerging innovators—including Mavenir, Parallel Wireless, and NEC Corporation—are reshaping competition with open, virtualized, and cloud-native solutions.

Recent Industry Developments

• October 2024: SoftBank and Ericsson expanded their AI-RAN collaboration to optimize RAN and AI convergence at the network edge.
• July 2024: Nokia and Bharti Airtel conducted India’s first 5G non-standalone Cloud RAN trial, achieving 1.2 Gbps throughput.
• February 2024: AT&T, Verizon, and partners secured a USD 42.3 million U.S. grant for advancing Open RAN testing under the ACCoRD initiative.
• September 2023: Fujitsu introduced its O-RAN-compliant virtualized C-RAN platform, promoting interoperability and innovation.