Open RAN (Radio Access Network) automation software and services are projected to reach nearly $700 million by 2027 according to recent findings by SNS Telecom & IT.
The surge is driven by mobile operators' continuous digital transformation efforts aimed at optimising network operations, reducing costs, and improving service quality, especially as the world moves into the 5G and AI era.
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As 5G technology brings a higher density of radios and cell sites, energy efficiency has emerged as a critical focus for RAN automation. Mobile operators, facing rising operational costs and increasing environmental concerns, are prioritising automation strategies that reduce energy consumption and carbon emissions without compromising network quality.
Japanese telecom giant NTT DoCoMo expects to reduce its total cost of ownership by up to 30% and reduce power consumption at base stations by as much as 50% via Open RAN automation. Meanwhile Rakuten Mobile has reported a 17% energy savings per cell in its live network and aims to boost this to 25% with more sophisticated AI and ML models.
Beyond energy efficiency, RAN automation is also enabling advanced use cases such as network slicing, application-aware optimisation, and anomaly detection.
The report highlights that the global market for RAN automation software and services, including SON solutions and third-party C-SON platforms, is expected to grow at a compound annual growth rate (CAGR) of approximately 8% from 2024 to 2027.
Within this broader market, spending on RIC, SMO, and x/rApps is set to expand even more rapidly, with a CAGR exceeding 125% during the same period. This growth is largely driven by the second wave of Open RAN rollouts, particularly among brownfield operators who are transitioning from legacy systems to more flexible and efficient Open RAN architectures.
Commercial deployments are already gaining momentum. In the United States, AT&T has embarked on a $14 billion Open RAN infrastructure contract with Ericsson, adopting the company’s SMO and Non-RT RIC solutions to replace older C-SON systems.
In Canada, Telus is implementing a similar platform to modernise up to 50% of its RAN footprint, replacing Huawei equipment in its 4G/5G network.
European operators like Swisscom and Deutsche Telekom are also making significant strides, deploying SMO and RIC platforms as part of their broader efforts to future-proof their networks.
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