RAN intelligent controller market is anticipated to grow at a CAGR of 16.5% during the forecast period (2024-2031). The market growth is attributed to the increasing adoption of artificial intelligence (AI) and machine learning (ML) based systems for providing real-time analytics. RAN intelligent controllers include lower costs for mobile transporters, greater network control, and increased network performance. Use cases for RAN intelligent controllers include resource optimization, traffic steering, quality-of-experience (QoE), and quality-of-service (QoS) optimization. RAN intelligent controller (RIC) is a comprehensive automation platform designed to optimize software applications and algorithms to manage network performance.

Market Dynamics

Growing Adoption of Multi-Access Edge Computing (MEC) in RAN Intelligent Controller

MEC offers a distributed computing platform for hosting services and applications. For faster reaction times, it can also store and process content near cellular users. Real-time radio access network (RAN) data can also be provided to applications. Software programs can access local content, service context, and up-to-date information on local-access network circumstances with multi-access edge computing (MEC). Mobile core networks can efficiently support local latency-sensitive applications by relieving additional congestion providing multiple services and storing material at the network edge.

Increasing Integration of Artificial intelligence (AI) and Machine learning (ML)

AI and machine learning technologies are widely used in RAN intelligent controllers. In 5G and 4G, these technologies are applied to various network services. The O-RAN is promoting the introduction of open architecture in mobile networks, particularly in the Radio Access Network (RAN). The RAN Intelligent Controller (RIC) is being actively developed for 5G RAN automation and optimization. An ecosystem of xApp/rApp, which includes a variety of AI/ML applications running on the RIC platform, is also being created. The O-RAN-defined near-real-time RAN intelligent controller can be easily integrated with this high-performance, power-efficient system, which allows for flexible control over resource allocation in the RAN. This makes it possible for the embedded vCU/vDU control logic to dynamically optimize RAN network performance through the use of machine learning (ML) and artificial intelligence (AI).

Market Segmentation

Our in-depth analysis of the global RAN intelligent controller market includes the following segments by component, function, technology, and application:

• Based on components, the market is sub-segmented into platforms and services.

• Based on function, the market is sub-segmented into Non-RT RIC (non-real-time-RAN intelligent controller) and Near-RT RIC (near-real-time-RAN intelligent controller).

• Based on technology, the market is sub-segmented into 4G and 5G.

• Based on application, the market is sub-segmented into rApps and xApps.

5G is Projected to Emerge as the Largest Segment

Based on the technology, the global RAN intelligent controller market is sub-segmented into 4G and 5G. Among these, 5G sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes the growing adoption of RAN intelligent controller in 5G to enhances network performance, boosts business agility, and lowers infrastructure and operating costs for mobile operators. Telecom providers can create an adaptable open network with a basic device configuration that can be expanded to include a wide range of features. For instance, in February 2023, Fujitsu Ltd. introduced a new 5G vRAN solution combining Fujitsu’s virtualized CU (vCU) and virtualized DU (vDU) with NVIDIA’s GPU technology. The new solution was developed as part of the 5G Open RAN Ecosystem (OREC) project promoted by NTT DOCOMO, which also supported performance verification and evaluation tests of the new solution.

rApps Sub-segment to Hold a Considerable Market Share

Based on application, the global RAN intelligent controller market is sub-segmented into rApps and xApps. Among these, rApps sub-segment is expected to hold a considerable share of the market. The segmental growth is attributed to the growing adoption of rApps software application to run the non-real time RAN intelligent controller. Utilizing the capabilities available by the Non-RT RIC via the R1 interface, rApp is able to fulfill use cases related to autonomous network management and optimization. The rApp makes use of the Non-RT RIC's capabilities for network data and topology discovery and mediation, network data read and write, insight production, and sophisticated machine learning model execution. The rApp can concentrate on the business logic and create automated use cases more quickly.

Regional Outlook

The global RAN intelligent controller market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Adoption of RAN Intelligent Controller in Europe

• According to the Gov.UK, in April 2023, As part of HM Government’s ambition to carry 35.0% of the UK’s mobile network traffic over open and interoperable RAN architectures by 2030.

• In September 2023, The UK government announced £88 million ($109 million) in funding for 19 projects to demonstrate the potential of open radio access networks (Open RAN) to enable better mobile services.

Global RAN Intelligent Controller Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to numerous prominent technology companies and research institutions specializing in RAN intelligent controllers and related technologies in the region. For instance, in April 2023, Ericsson and the Government of Canada invested more than CAD 470 million ($348.1 million) in R&D centers. The investment, at Ericsson’s Ottawa, Ontario and Montreal, Quebec facilities, is expected to create and upskill hundreds of jobs strengthening the sites as global leaders in 5G advanced, 6G, AI, cloud RAN, and core network technologies. Additionally, increasing 5G deployment, growing penetration of smartphones, and market players actively engaging in partnerships and collaborations to expand 5G offerings.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global RAN intelligent controller market include Cisco Systems, Inc., NEC Corp., Samsung Electronics Co., Ltd., Telefonaktiebolaget LM Ericsso, ZTE Corp., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in June 2023, Cisco and Intel collaborated on a network solution for communications service providers (CoSPs) that delivers on the O-RAN promise. To address integration challenges faced by CoSPs when deploying Open RAN network infrastructure, Cisco and Intel have combined forces to validate seamless interoperability between Intel® Ethernet 800 series network adapters with enhanced network timing capabilities and Cisco Nexus 93180YC-FX3 network switches.

Recent Development

• In July 2023, Rakuten Mobile, Inc. and Yokosuka Telecom Research Park Co., Ltd. opened a new RIC (RAN intelligent controller) research facility at the Yokosuka Research Park in Kanagawa Prefecture, Japan, with the aim of contributing to the further advancement of Open RAN (Radio Access Network) development.

• In February 2022, Juniper Networks® and Vodafone delivered a successful first-of-its-kind Open RAN RIC trial on a commercial network, Highlighting third-party apps integration. The application allows for the dynamic allocation of network resources without the need for over-provisioning all the way to specific customers, therefore improving resource management and network efficiency.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global RAN intelligent controller market. based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.