Global Small Cell Networks Market Grows Steadily at a CAGR of 8.80%

Introduction

Small cell refers to a wireless network base station with a small physical footprint, restricted range, and radio frequency (RF) power output. High-bandwidth applications and data-capable gadgets cause this exponential increase in mobile data traffic. Installing small cells is a top priority for many operators because 60% of those weighing their alternatives believe it is necessary for their 4G services.

Market Dynamics

Increasing Adoption of 5G in Small Cell Technology Drives the Global Market

According to the GSMA, early deployment testing for 5G networks has touched about 45% of urban areas. Small cells are necessary to operate both 4G and 5G networks because they provide the increased data capacity that 5G demands. Additionally, they help carriers reduce costs by getting rid of pricy rooftop equipment and installation fees. They also help with the battery life and functioning of mobile devices.

Small cells can offer a cost-effective substitute for expensive macro sites in order to close coverage gaps, boost capacity, and prepare networks for 5G. Because more high-frequency bands will be used for 5G installations, macro base stations are predicted to leave a significant number of locations without connectivity. Therefore, it becomes necessary to deploy small, low-powered small cells to improve user experience, particularly in cell-edge areas.

Rising Demand for Mobile Devices Creates Tremendous Opportunities 

The market is driven by the development of connectivity tools and network technologies and the rising demand for mobile devices worldwide. This demand has changed the way IT services are provided and has given market players fantastic possibilities to improve their market positions. Acer India Pvt Ltd.'s South India Zonal Manager, Navaneeda Giri, asserts that technological advancements like working and learning from home have made it possible for them to meet the growing demand for tablets and laptops as businesses have been ordering laptops by the thousands and schools are switching to laptops or tablets for online education. In addition, according to the GSMA, there will probably be 6 billion mobile devices in use by 2020. Customers are also driving the trend toward adopting mobile devices to contact businesses for various purposes, such as using apps, mobile websites, and instant messaging to research products, make purchases, and receive technical support.

 

Regional Analysis 

Asia-Pacific is the most significant shareholder in the global small cell network market and is anticipated to grow at a CAGR of 7.95% over the forecast period. The region's small cell network market share is growing as a result of the region's rapid 5G technology development and mobile connectivity. For instance, Shanghai pledged to invest CNY 10 billion in creating a 4G network by 2020, with the city supporting the construction of 50,000 small inside stations by that time. In addition, small indoor stations and other advances in indoor coverage technologies encourage market expansion.

North America is anticipated to grow at a CAGR of 6.90% over the forecast period. The operators in North America have begun to shut down 2G and 3G networks to redefine the spectrum. As local operators shift to 5G networks by combining low, mid, and high-band spectrums, this pattern is projected to continue. According to Mobility Research from Ericsson, North America's average smartphone data traffic might increase by more than five times from 8.5 GB per user per month in 2019 to 45 GB per month in 2025. Additionally, due to the arrival of 5G small cell technology, 65% of respondents in the United States are more optimistic than respondents in other nations about higher mobile internet connections.

Key Highlights

• The global small cell networks market is expected to grow at a CAGR of 8.80% during the forecast period (2022-2030).
• Based on the operating environment, the global small cell networks market is bifurcated into indoor and outdoor. The indoor small cell networks segment is the highest contributor to the market and is expected to grow at a CAGR of 8.20% during the forecast period.
• Based on the end-user vertical, the global small cell networks market is bifurcated into BFSI, IT and telecom, healthcare, retail, and others. The retail sector owns the highest market share and is expected to grow at a CAGR of 8.40% over the forecast period.
• Asia-Pacific is the most significant shareholder in the global small cell network market and is anticipated to grow at a CAGR of 7.95% over the forecast period.

 

Competitive Players

Competitive Players

The global small cell network market’s major key players are Nokia Networks, American Tower Corporation, Qualcomm Technologies Inc., ZTE Corporation, Huawei Technologies Co. Ltd, Verizon Wireless, Commscope Inc., Qucell Inc., Telefonaktiebolaget LM Ericsson, Samsung Electronics Co. Ltd, NEC Corporation, and Airspan Networks Inc.

Recent Developments

Market News

• In September 2022, At the International Broadcasting Convention in Amsterdam, the Netherlands, ZTE Corporation, a significant global provider of telecoms, enterprise, and consumer technology solutions for the mobile internet, unveiled its IPTV/OTT multi-center solution. The multi-center IPTV/OTT system from ZTE uses a distributed active-active architecture. Each center is a stand-alone platform that can provide all services, enabling thorough capability improvements in operations, maintenance, and disaster recovery.

Segmentation

Global Small Cell Networks Market: Segmentation

By Operating Environment

• Indoor
• Outdoor

By End-User Vertical

• BFSI
• IT and Telecom
• Healthcare
• Retail
• Power and Energy
• Government
• Other End-User Verticals

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA