According to a recent analysis by Frost & Sullivan, network automation makes it possible for the radio access network (RAN), transport network, and core/edge networks to all function more effectively than was previously conceivable. As a result, the global market for 5G network automation is estimated to grow from about $3.5 billion in 2021 to $5 billion by 2026.
“Network automation is an essential part of 5G because it enables efficiency and cost savings for communication service providers (CSPs),” said Troy Morley, Industry Principal, ICT at Frost & Sullivan. “While the entire 5G network will benefit from network automation, the most significant growth opportunity lies within the 5G RAN, where CSPs invest the largest portion of their capital expenditures (CAPEX) and operating expenditures (OPEX).”
“With nearly 70% of infrastructure spend, slight improvements in the RAN due to network automation will lead to significant payback for CSPs, particularly concerning OPEX,” added Mr. Morley. “Further, the new architecture of the 5G RAN has opened the market to many new suppliers bringing in specialists in machine learning and artificial intelligence.”
According to Frost & Sullivan, the global 5G network automation market would present opportunities in the space of:
- The 5G RAN – Automation of the RAN allows for the possibility of ongoing RAN performance improvement and ongoing OPEX reduction for each RAN, giving the CSP a win-win situation
- The 5G core/edge networks – The global rollout of network operations that make up the 5G core and edge networks is starting, and operational and financial success will require automation
- The 5G transport networks – RAN and core networks frequently receive more attention than transport networks do. They do, however, necessitate automation in order for 5G to live up to expectations. This is going to be crucial as network slicing advances.
The most recent addition to Frost & Sullivan’s ICT research and analyses, Global 5G Network Automation Growth Opportunities, is made available through the Frost & Sullivan Leadership Council. This council aids organizations in locating ongoing growth opportunities so they can thrive in an uncertain future.