O-RAN investment to hit $11 billion by 2029, study finds

A recent study by Juniper Research indicates that annual operator investment in Open Radio Access Networks (O-RAN) will reach USD $11 billion in 2029, a significant increase from USD $2 billion in 2024. This surge represents almost USD $40 billion of global investment into AI network automation over the next five years, driven by the growing need to accommodate an increasing number of cellular connections and data.

O-RAN is an iteration of the RAN technology that supports multi-vendor deployments and facilitates the expansion of AI RAN deployments. RAN technology enables connectivity between end connections and network cores. An extract from the new report, Global Operator O-RAN Strategies, 2024-2029, is now available for download.

The report forecasts that cellular data usage will more than double over the next four years due to the expansion of 5G broadband services and the integration of 5G technology with the Internet of Things. The study identifies AI-based traffic steering as a crucial service enabled by O-RAN for efficiently managing this increased data load. Traffic steering allows operators to optimise network efficiency by automatically routing cellular traffic, thereby maximising network resources.

The report encourages operators to adopt AI-based traffic steering to intelligently manage traffic based on application needs. This approach will enable operators to prioritise applications that require low latency, allowing for balanced network load without significantly affecting connectivity. Research author Alex Webb commented, "Operators must leverage AI-based traffic steering to improve connectivity services, such as enhanced mobile broadband, with network traffic generated by these connections being given priority steering to the base station offering the lowest latency to maximise the value proposition for users."

Adding to the broader conversation, in Juniper Networks' recent report on the telecommunications market, research co-author Benjamin Clark remarked: “Despite the investment into new technologies, strategies to monetise networks via mobile subscribers have fallen short. Future business models must create value for enterprises and new revenue streams that monetise via enterprise activities.”

The research suite offers an extensive assessment of the O-RAN market, featuring in-depth market analysis, a Competitor Leaderboard, and comprehensive forecasts for 60 countries. The dataset contains over 24,000 market statistics across a five-year period.

Juniper Research specialises in identifying and appraising high growth market sectors within the digital ecosystem.