The global small cell networks market size is expected to reach USD 7.87 Billion in 2030 and register a revenue CAGR of 25.7% during the forecast period, according to latest report by Reports and Data. Increasing government funding for development of digitalization and penetration of mobile devices in remote areas are expected to drive market revenue growth during the forecast period.
Rising government funding for digitalization is a key factor driving revenue growth of the market. For example, India’s telecom ministry announced an auction of 5G spectrum valued at more than USD 40 billion. Government of South Korea announced first 5G network in 2020, and plans to convert 60% of all mobile subscriptions to 5G networks by 2025. Increasing investment by governments of various countries and telecom operators in 5G network infrastructure is expected to boost growth of small cell network market. In addition, increasing penetration of mobile devices in remote areas is expected to boost revenue growth of small cell networks market during the forecast period.
Demand for advanced communication networks is increasing in telecom and IT sectors due to rising mobile data traffic. Demand for mobile data traffic is increasing significantly due to the high-bandwidth applications and other advanced devices. Small cells deliver secure and high-quality data coverage which increase adoption of small cell network in IT and telecom sectors and is expected to boost revenue growth of market during the forecast period.
However, concerns regarding technical challenges such as availability of a clear link between small cell Base Stations (BS) and Point of Presence (PoP), high backhaul costs, and deployment issues are expected to hamper revenue growth of market during the forecast period. Different types of small cell BSs require different backhaul designs and architectures since small cells can be installed in other locations. Therefore, physical structure and architecture have a significant distinction between various backhaul options, which affect feasibility of alternative deployment sites and accompanying backhaul costs.
- Mid band small cell networks segment is expected to register a significantly steady revenue growth rate over the forecast period due to its balance of speed, coverage, capacity, and penetration that is especially great for highly populated metropolitan areas where connectivity demand is high
- Microcell small cell networks revenue is expected to grow at a significantly higher rate over the forecast period due to small size, low maintenance cost, and its implementation in a variety of network-expanding applications
- The market in Europe is expected to register a steady revenue growth rate over the forecast period. Rapid expansion within next-generation network technologies, in order to boost small-cell efficiency, is expected to drive growth of the Europe market.
- Major companies in the global market report include Telefonaktiebolaget LM Ericsson, Cisco Systems Inc., Huawei Technologies Co., Ltd, Nokia Corporation, ZTE Corporation, CommScope Inc., Airspan Networks, Inc., NEC Corporation, Baicells Technologies, and Mavenir Systems, Inc.
- In October 2021, Cisco the networking giant announced an agreement to buy privately held, Germany-based company Replex. The deal is Cisco’s latest move in its increased focus to broaden capabilities of AppDynamics business observability platform. Earlier, Cisco bought Dashbase, bringing that company’s log tracing and events analytics technology to AppDynamics. Cisco also acquired ThousandEyes, whose network intelligence technology was recently integrated into AppDynamics Dash Studio data visualization tool.