Small Cell 5G Network Market Share, Growth & Forecast [2031]

Report Description

Small Cell 5G Network Market Outlook

The global small cell 5G network market size was valued at USD 6.18 Billion in 2022 and is likely reach to USD 1.08 Trillion by 2031, expanding at a CAGR of 77.6% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing need to reduce the operational expenses, make data-driven decisions, and gather real-time information.

A small cell is a type of radio access point, which has a low radio frequency (RF) power footprint, output, and range. A small cell is an operator-controlled device that can be installed in both outdoor and indoor locations, shared, in-licensed, or unlicensed spectrum.

It is a complement of the macro network to achieve control of a greater area, support new services and applications, and accommodate more users, which results in improved user experiences.

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The different types of small cells has varying power levels, range, as well as form factors, improved for specific applications. The smallest units are meant for residential and indoor use; the largest are rural or urban outdoor picocells.

The introduction of 5G, small cells are anticipated to have a dominating role in a wireless network system as it has limited footprint and smaller form-factor. The qualities makes the small cells perfect for high bandwidth concentrated services.

The rising in demand for a 5G network in the customers’ population at public locations such as offices, malls, and stadiums.  Furthermore, the demand for 5G data services for several use cases, including seamless video calling, Ultra-high Definition (UHD)/4K video, and cloud-based VR/AR gaming is constantly increasing. These factors are contributing for the growth of the market.

The National Health Expenditure Accounts (NHEA) of the U.S. anticipated the total healthcare expenditure in the U.S. to achieve nearly USD 6.0 trillion mark till 2027, with a CAGR of around 5.5% in the time period of 2018 to 2027.

The COVID-19 pandemic has impacted the market in negative manner as it reduced the pace of application of 5G infrastructure. This is attributed to the disruption of trials and testing required for validating the processing and stability performance of 5G networks. The pandemic hampered the telecom regulatory organization to postpone the plans of 5G spectrum auctions.

Market Trends, Drivers, Restraints, and Opportunities

• The introduction of small cell 5G networks is increasing at a significant pace in industrial, enterprises, and residential applications to give improved coverage volume at an affordable cost is boosting the market in the near future.
• Favorable government initiatives for the improvement of the networks in the region is propelling the market in the forecast period.
• The healthcare industry has begun focusing on concepts, such as remote surgeries and diagnosis to the patients is providing the boost to the market with tremendous opportunities.
• The introduction of next-generation small cell networks is expected to gain significant growth during the forecast period.
• Increasing mobile data traffic around the world allows telecom operators to transfer the network densification to give the high-speed capacity for consumers is pushing the market for growth.
• Lack of awareness and inadequate number of skilled professional is the restraint for the market in the coming years.
• The increasing acceptance of advanced technology in the world demonstrates huge opportunities for the market in the near future.

Scope of Small Cell 5G Network Market Report

The report on the global small cell 5G network market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Small Cell 5G Network Market Segment Insights

Femtocell segment is expected to grow at a rapid pace

Based on technology, the global small cell 5G network market is divided into hardware and services. The hardware segment is segmented into picocell, femtocell, and microcell. The services segment is segregated into consulting, deployment & integration, and training and support & maintenance.

The femtocell segment is expected to grow at a rapid pace. The segment showed revenue share of 60% in year 2019.

This is accounted to its rising demand to achieve unified bandwidth coverage for various enclosed applications such as offices, homes, malls, and hospitals. The covering bandwidth ranges of picocells, femtocells, and microcells include up to 250 meters, up to 50 meters, and up to 3 Kilometers, respectively.

Pico cells has a vital role in managing a great quantity of the population, providing high-speed internet capacity in places like festivals, concerts, stadiums, and others. Additionally, telecom service providers are getting uninterrupted data services around the rural areas because of line-of-sight problems.

The microcells offer uninterrupted connectivity to customers, specifically in rural or remote areas, up to 3 KMs of distance.

Non-standalone segment is projected to expand at a considerable CAGR

On the basis of network models, the global market is segregated into standalone and non-standalone. The non-standalone segment is projected to expand at a considerable CAGR. The segment generated revenue share of greater than 85% in 2019.

This is because of the early launch of the non-standalone network around the world. The non-standalone network is normally deployed in collaboration with the legacy network infrastructure.

The increasing industrial digitalization has generated new revenue stream for organization around the world. To offer endless connectivity in machines, the demand for the reliable high frequency along with low latency communication is a requirement.

Further, the necessity for unified bandwidth capacity with minimal latency to introduce uninterrupted communication between autonomous vehicles is estimated to boost the market demand in the logistics & transportation segment.

This propels the need for fast data speed in the verticals as mentioned above is expected to bolster the deployment of the standalone network in the near future.

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Virtualized segment is estimated to grow at a significant rate

On the basis of network architecture, the global market is bifurcated into distributed and virtualized. The virtualized segment is estimated to grow at a significant rate. The segment recorded the revenue share of more than 55% in year 2019. This is accounted to a vigorous deployment of small cell 5G network along with a centralized baseband unit.

This assists the organization to decline the Total Cost of Ownership (TCO). As well as grow the total flexibility of the network by managing virtually all the small cell base stations.

Moreover, the launch of Network Function Virtualization (NFV) coupled with Software-defined Networking (SDN) technology to optimize the operational effectiveness of the RAN network is anticipated to bolster the segment growth in the coming years.

Major telecom service providers are investing in large scale for the deployment of virtualized small cell 5G network infrastructure in various countries.

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Indoor segment is projected to expand at a considerable CAGR

On the basis of deployments, the global market is segregated into in-door and outdoor. The indoor segment is projected to expand at a considerable CAGR. The segment generated revenue share of greater than 80% in 2019. This is because of the faithful deployment of next-generation small cells around several non-residential and residential applications.

The non-residential uses mainly involve airports, retail malls, enterprises, hospitals, and others. Furthermore, as per to the China's Ministry of Industry and Information Technology (MIIT) the high-value consumers are devoting more than 80% of working hours in the indoors. This report bolsters the claim of adoption of small cells for indoor applications in the projected time period.

The Outdoor small cells segment is expected to grow at a substantial rate. The outdoors are primarily installed for public networks in urban, suburban, or rural areas. The growing quantity of Internet of Things (IoT) devices around various applications such as vehicles to infrastructure (V2I) and autonomous vehicles connectivity have produced the necessity for high-speed data capacity.

Moreover, the deployment of lamp post small cells is increasing demand in fast building smart cities around the world. These factors are boosting the market segment for tremendous growth in the near future.

Sub-6GHz segment is estimated to grow at a significant rate

On the basis of frequency types, the global market is divided into sub-6 GHz, mmWave, and sub-6GHz + mmWave. The Sub-6GHz segment is estimated to grow at a significant rate. The segment recorded the revenue share of more than 90% in year 2019.

This is attributed to the huge funding by major communication organization in gaining control over mid and low-band frequencies to provide high bandwidth services to businesses, customers, and industries.

Several countries introduced sub-6 GHz frequencies to offer high-speed internet services in their region. Owing to benefits to bolster multi-band frequencies, the mmWave and sub-6GHz segment are anticipated to contribute at significant rate for the growth of the market in the near future.

The mmWave segment is anticipated to grow at substantial pace. The mmWave frequencies are great band frequencies, which offer improved bandwidth capacity with very low latency. The spectrum bands assists in uses where ultra-reliable connectivity is a necessity, specifically in vehicle to vehicle (V2V) and remote patient surgeries connectivity.

This has boosted the emphasis to release mmWave frequencies by major governments around various countries is estimated propel the segment in the near future.

Corporates/ enterprises segment is expected to grow at a rapid pace

Based on end-users, the global small cell 5G network market is divided into residential, commercial, industrial, smart city, transportation & logistics, government & defense, and others.

The commercial segment is further classified as corporates/ enterprises, hospitals, hotels & restaurants, malls/shops, stadiums, and others. The industrial segment is segregated into smart manufacturing, energy & utility, and oil & gas and mining. The corporates/ enterprises segment is expected to grow at a rapid pace.

The segment showed revenue share of 60% in year 2019. This is due to the increasing deployment of small cell 5G networks around Small and Medium Enterprises (SMEs) as well as large enterprises around the globe.

The 5G RAN network assists the enterprises supply to the demand of huge data storage along with coverage demands at a significantly affordable prize. Furthermore, small cell 5G networks also assists the service providers to apply the current broadband infrastructure to position the next-generation networks.

The exceptional boost in millions of Industrial IoT devices (IIoT) has increased the need for unified data connectivity to introduce seamless communication with these devices. These IIoT devices majorly contains extended Automated Guided Vehicles (AGVs), reality headsets, Ultra-HD wireless cameras, and collaborative robots.

This offers seamless connectivity at low latency, the establishment of small cell 5G network for industrial applications is estimated to propose tremendous growth during the forecast period.

Small Cell 5G Network Market Regional Outlook

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the global small cell 5G network market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

Asia Pacific is anticipated to constitute a key market share. The market of the region gained revenue share of greater than 30% in 2019. This accounted for the extensive deployment of 5G new radio infrastructure by the key service providers in the communication sectors.

The major service providers availability in the region, such as Rakuten Mobile, Inc.; KT Corporation; China Mobile Limited; and NTT Docomo Inc. 

The increasing focus emphasis on relaeasing multiple mmWave frequencies and sub-6GHz for the rising needs of high-speed data connectivity is boosting the market of the region in the near future.

North America market is projected to demonstrate huge growth in the near future owing to the presence of major players in the market such as T-Mobile; Sprint Corporation; AT&T Inc.; and Verizon Communications. The great amount of investment in the market by the above mentioned organization is the key driving factor for the market.

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