Global Small Cell 5G Network Market by Component (Hardware, Services) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global small cell 5G network market was valued at USD 310.8 millions in 2019. It is expected to grow at an annual compound growth rate (CAGR of 77.6%) between 2020 and 2027. The market was worth 215 000 units in terms of volume in 2019. In 2019, the market was worth 215 thousand units. This is due to the ever-growing demand for mobile data connectivity. Small cell 5G networks are rapidly expanding in residential, commercial, and industrial applications. They provide a more affordable way to increase coverage. The rapid growth in mobile data traffic around the world allows telecom operators to shift towards network densification to offer high-speed capacity for mass consumers. Global mobile traffic will increase by more than 175 gigabytes per month by 2027. This figure is more than half of the global 5G network.

Over the forecast period, there will be significant growth in deployment of next-generation small cells networks. This growth is due to the growing demand for 5G networks from large numbers of customers in public places such as offices, malls, and stadiums. The demand for 5G data services is growing rapidly for a variety of use cases including seamless video calling, ultra-high definition (UHD), and cloud-based VR/AR games. It is expected to further boost market growth during the forecast period.

The U.S. and China are two of the world's largest economies. They will continue to spend heavily on healthcare provision. The National Health Expenditure Accounts of the U.S. (NHEA), which estimates that healthcare spending will reach USD 6.0 trillion in 2027, shows a CAGR close to 5.5% between 2018 and 2027. In developed countries, the healthcare industry has begun to emphasize remote diagnosis and surgery for patients. The COVID-19 pandemic enabled many countries to invest in advanced technologies like 5G Infrastructure. The market for small-cell 5G networks is expected to grow from 2020 to 2027 to provide constant connectivity for remote patient surgeries and telemedicine.

Due to interruptions in testing and trials required to validate the stability and performance of 5G networks, the spread of COVID-19 will likely slow down implementation of 5G infrastructure. Due to the COVID-19 epidemic, important countries like China and the U.S. saw a sharp decline in trades for small cell phone equipment for 5G New Radios. The ongoing pandemic also had an impact on market growth, with telecom regulators postponing plans for 5G spectrum auctions. Some governments, such as those in the U.S. and Australia, have temporarily halted auctions of spectrum on certain frequencies like Sub-6GHz and mmWave. These factors will collectively pose a problem for market growth in the coming years. The market growth will also be affected by the growing trade war between the U.S. and China.

Component Infrastructure Insights

The market was dominated by the femtocell sector in terms of volume with a share exceeding 60% for 2019. It is due to the increasing demand for unified bandwidth coverage to cover multiple enclosed applications, such as hospitals, homes, offices, and malls. Based on their ranges, small cells can be divided into three types: picocells (femtocells), microcells (microcells), and picocells (picocells). The coverage bandwidth ranges for femtocells and picocells can be as wide as 50 meters, 250 meters and 3 kilometers, respectively.

Pico cells are vital in providing high-speed internet access to large areas of the population. They also provide coverage for concerts, festivals and other events. Telecommunication service providers still face problems with uninterrupted data services in rural areas because of line-of-sight issues. Microcells offer seamless connectivity for consumers in rural or remote areas up to 3 kms away. It is expected that microcells and picocells will be more widely implemented over the next seven year due to the above factors.

Network Model Insights

The market was dominated by the non-standalone network model (NSA), which had a value share of over 85% in 2019. This is due to the rapid rollout of the non-standalone network around the world. The non-standalone network generally works in conjunction with existing network infrastructure. Several key service providers, including AT&T, Inc, Verizon Communications, China Mobile Limited, and Verizon Communications, have already deployed a 5G NSA network model that caters to primary uses such as cloud-based AR/VR gaming, UHD videos, and UHD video.

Service providers around the world have a new source of revenue thanks to industrial digitization, which is rapidly increasing. The need for ultra-reliable, high frequency communication with low latency is essential to provide unlimited connectivity between machines and machines. Market demand for transportation and logistics services is expected to rise due to the requirement for unifying bandwidth with minimal latency in order to enable seamless communication between autonomous cars. The forecast period will see a rise in standalone network deployment due to the increasing need for data speeds across all verticals.

Network Architecture Insights

Virtualized network architecture was the dominant market in terms of value with a more than 55% share in 2019. This is due to the robust deployment of small cell 5G networks with a central baseband unit controlled architecture. Service providers can reduce their Total Cost of Ownership (TCO), and increase network flexibility by controlling virtually all small cell base stations. The segment growth is expected to increase from 2020-2027 due to the addition of Software-defined Networking technology (SDN) and Network Function Virtualizations (NFV), which will improve the network's operational efficiency.

Key telecom operators have been investing heavily in virtualized small cell 5G infrastructure deployments across many countries. China Telecom and China signed an agreement with Ericsson in May 2020 to establish a cloud-based 5G radio access network and core network using various frequency bands, including the low-band mid-band. These communication providers (CSPs) will be able to reduce network complexity and infrastructure costs through this project. It is expected that the virtualized segment will achieve market revenue of USD 19.89 trillion by 2027.

Insights on the Deployment Mode

The indoor segment was the most valuable in terms of market share, with more than 80% of the market in 2019. The reliable deployment of next generation small cells across a variety of residential and non-residential uses is responsible for this market dominance. Non-residential uses include, among other things, enterprises, retail centers, airports, hospitals and others. According to data from China's Ministry of Industry and Information Technology, over 80% of high-value customers spend their work hours indoors. It is expected that indoor small cells will be more popular in the coming seven years.

Small cells in the outdoors are used primarily for public networks, whether they're located in urban or suburban areas. High-speed data capacity is required due to the rapid growth of Internet of Things devices (IoT) in many applications, such as autonomous vehicles or vehicles to infrastructure (V2I). In rapidly growing smart cities around the world, lamp post small cells are becoming more popular. This will, in turn, fuel outdoor's growth at an estimated CAGR of 87.6% between 2020 and 2027.

Frequency Type Insights

Sub-6 GHz dominated this market in terms of value with a more than 90% share in 2019. Key communication service providers have made huge investments in low- and mid-band frequencies to provide high bandwidth services to consumers and businesses. Recent releases of sub-6GHz frequencies by key countries like China, Japan, South Korea and the U.S. to offer high-speed internet service in their respective countries were made. Qualcomm Technologies, Inc., one of the key small cell component suppliers, has unveiled a new chipset that supports 5G small cells. It is compatible with both sub-6GHz frequency bands and mmWave frequency band. The sub-6GHz and the mmWave segments are expected to experience significant market growth due to their ability to support multiple-band frequencies.

High-band frequencies with very low latency and bandwidth capacity are called mmWave frequencies. These frequency bands are most useful in applications that require ultra-reliable connectivity, such as remote patient surgeries or vehicle to vehicle (V2V), connectivity. Few federal governments in developed countries have released mmWave frequency bands to enhance data services. The Federal Communication Commission (FCC), for example, released several mmWave frequencies including 47.2-48.2GHz, 47.2-48.2GHz, 48.2-48.2GHz, 38.6-40GHz and 24.75-25.25GHz. These frequencies were released with the goal of providing ultra-reliable connectivity to applications like autonomous vehicles. For increased data capacity, countries like Russia, South Korea, Italy and Japan have released mmWave frequencies. The mmWave segment is expected to grow from 2020-2027, with a greater focus by key federal governments in many countries to release mmWave frequency frequencies.

End-user insights

With a market share of almost 60%, corporations/ enterprises dominated this market in terms of value. This is due to the increasing deployment of small cell 5G networks in large and medium enterprises (SMEs) around the world. Enterprises can now take advantage of the 5G RAN network to meet their massive data and coverage requirements at a very low cost. Small cell 5G networks allow organizations to use the existing broadband infrastructure to build these networks. In addition, small cell 5G networks were initially adopted across a wide range of residential applications, including smart homes, cloud gaming and home broadband.

An increase in the number of Industrial IoT devices (IIoT), has led to a demand for unified data connectivity that allows constant communication between these devices. These IIoT devices include Ultra-HD wireless cameras and extended reality headsets. They also include automated guided vehicles (AGVs), collaborative robots, and automated guided vehicles (AGVs). The installation of small cell 5G networks for industrial applications will see a significant increase in demand to provide seamless connectivity and low latency. Another critical use case, asset monitoring in energy and utility sectors, is expected to see strong growth over the next years.

Regional Insights

With a market share of over 30%, Asia Pacific was the leader in small cell 5G network value. This can be attributed to the rapid deployment of 5G radio infrastructure by major service providers like China Mobile Limited, KT Corporation, Rakuten Mobile Inc. and NTT Docomo Inc. To meet the increasing demand for high-speed data connectivity, key countries like Japan, China and South Korea have been focusing on releasing multiple sub-6GHz frequencies and mmWave frequencies. The market is expected to grow strongly over the forecast period.

The U.S. market will continue to grow with the presence of major service providers like AT&T Inc., Sprint Corporation, T-Mobile; Verizon Communications and Verizon Communications. The market is expected to reach USD 7.05 Billion by 2027 due to the large investments made by these companies in the deployment of small cell networks. T-Mobile, for example, signed a USD 3.5M agreement with Ericsson in September 2018 to help support its 5G network infrastructure. Ericsson will also provide software and hardware for 5G New Radio (NR), which T-Mobile will use to offer high-speed internet.

Market Share Insights & Key Companies

The market is highly concentrated, with only a few players accounting for a substantial share of total market revenue in 2019. To capture significant market share and expand their product portfolios, market leaders are focusing on product development. Nokia Corporation introduced two new small cell products in February 2019 for indoor and outdoor use. The first small cell to have mmWave support capability provides high-speed bandwidth for outdoor applications, such as airports and busy pedestrian zones. Nokia Corporation also offers a picocell RAN device for indoor data connectivity, such as in shopping malls or hospitals.

To expand their geographic presence, leading players are actively forming partnerships and agreements with major telecom operators. Ericsson and KT Corporation signed an agreement in September 2019 to deploy Ericsson’s indoor small cell product in enterprise applications. In July 2019, Swisscom, a Swiss-based telecom operator, also deployed small cells in Switzerland to support indoor applications in partnership with Ericsson. The following are some of the major players in the small cell 5G market:

• Huawei Technologies Co., Ltd.

• Samsung Electronics Co., Ltd.

• Nokia Corporation

• Telefonaktiebolaget LM Ericsson

• ZTE Corporation

• Fujitsu Limited

• CommScope Inc.

• Comba Telecom Systems Holdings Ltd.

• Altiostar

• Airspan Networks

• Ceragon

• Contela

• Corning

• Baicells Technologies

Up Market Research published a new report titled “Small Cell 5G Network Market research report which is segmented by Component (Hardware, Services), By Players/Companies CommScope Inc, Airspan Networks, Altiostar, Contela, Fujitsu Limited, Ceragon, Samsung Electronics Co Ltd, Comba Telecom Systems Holdings Ltd, Huawei Technologies Co Ltd, Nokia Corporation, Telefonaktiebolaget LM Ericsson, Corning, ZTE Corporation, Baicells Technologies”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Small Cell 5G Network Market Report Segments:

The market is segmented by Component (Hardware, Services).

Small Cell 5G Network Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Small Cell 5G Network Market

Overview of the regional outlook of the Small Cell 5G Network Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Small Cell 5G Network Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Small Cell 5G Network Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Hardware

                2. Services

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Small Cell 5G Network Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Small Cell 5G Network Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.