Small Cell 5G Network Market Analysis By Component (Small Cell 5G Network Solutions & Services) By Technology (5G New Radio (NR) Standalone & 5G NR Non-Standalone) By Frequency Band, Deployment Type, Cell Type, Application, End-User and By Region – Forecast 2022 to 2032

Global Small Cell 5G Network Market Outlook (2022-2032)

The small cell 5G network market is predicted to grow at a steady CAGR of 22.6% during the forecast period (2022-2032). It is estimated to be worth around US$ 8.2 Bn in 2032, rising up from US$ 1.1 Bn in 2022.

The demand for small cell 5G network is predicted to rise due to an increase in investment in 5G infrastructure and increased financing for high-speed networks in a number of nations throughout the world. This factor is projected to aid in the growth of the small cell 5G network market share.

The adoption of small cell 5G network is predicted to rise due to its features such as ultra-reliable, low-latency communications, the advent of the Citizens Broadband Radio Service (CBRS) band and the Internet of Things (IoT).

Small Cell 5G Network Market Historical Analysis (2015-2021) Vs. Forecast Outlook (2022-2032)

The demand for small cell 5G network witnessed a downfall, as per the analysis and report published by Fact.MR. During the historical period (2015-2021), the small cell 5G network market recorded a CAGR of 31.3%. However, due to COVID-19 and lockdown, the adoption of small cell 5G network declined. As a result, the small cell 5G network market is predicted to record a decreased CAGR of 22.6% during 2022-2032.

The coronavirus outbreak is projected to lead to an increase in the use of industrial automation in processes and discrete manufacturing, eCommerce, logistics, and transportation. The pandemic had a negative impact on the small cell 5g network market, as well as the 5G supply chain. In the medium term, the demand for small cell 5G network in various areas could be hampered, and its services are likely to suffer the most.

As small cell 5G devices are still considered niche, consumers may not be able to afford them. As a result, the small cell 5G network market share is predicted to witness a decline.

What is the Future of the Global Small Cell 5G Network Market As per Latest Trends?

“Growing data traffic and internet penetration to aid small cell 5G network market growth.”

The small cell 5G network market size is expanding due to a rise in mobile data traffic around the world. By 2032, global mobile traffic is predicted to expand by a factor of five, accounting for 136 billion dollars each month.

As a result of the significant increase in mobile data traffic, the demand for small cell 5G network market is expected to skyrocket. The adoption of small cell 5G network is predicted to be fuelled by an increase in network upgrading needs due to the exponential increase in mobile data traffic.

Consumers are likely to benefit from the adoption of small cell 5G network due to improved network quality. Furthermore, according to report, 2015–2021, mobile data traffic is predicted to expand at a CAGR of 46%, It is twice as fast as global IP fixed traffic growth during the same period. Mobile data traffic is estimated to account for 20% of worldwide IP traffic in 2022.

What are the Major Challenges Experienced by the Small Cell 5G Network Market Players?

“High infrastructure deployment costs for small cell networks restrain market growth”

The first deployment of 5G infrastructure is a costly affair for network operators. The demand for small cell 5G network is rising and as a result, several major firms are investing in the development of small cell networks.

A major cost constraint in these networks is the expense of robust strength fibre and power distribution. The average deployment costs of a small cell network, according to AT&T, Inc., range from USD 6.8 million to USD 60 million, depending on the rural and urban areas.

 Due to a scarcity of resources, the cost of constructing a 5G network in rural areas is higher than in urban ones. This is one of the major challenges faced by the key players in the small cell 5G network market.

On the other hand, ultralow latency of 1 millisecond (Ms) (roundtrip) connectivity requirements represents second backhaul challenge for mobile network operators prior to the 5G network. Small cells are used in high-traffic areas or when macrocell coverage is inadequate, and backhaul and power are typically unavailable.

Radio backhauls is one of the potential solutions for this problem, but to increase the adoption of small cell 5G network, unit size reduction and throughput testing are required, which may result in higher deployment costs. The lack of an alternative backhaul solution provides a substantial obstacle to small cell deployment and operation.

To address these difficulties, small cell 5G network service providers must have a dependable and flexible service delivery method that allows them to terminate backhaul services in non-traditional sites such as billboards, telephone poles, and building sides.

Denser small cell deployment is required under the 5G network to address the backhaul connectivity problem, and if the issue of poor backhaul is not resolved over time, vendors may be forced to find alternative backhaul options such as Wi-Fi and next-generation satellites to meet service expectations.

As market players of small cell 5G network overcome these challenges, the demand for small cell 5G network is likely to witness immense growth during the forecast period.

Country-wise Analysis

What makes the U.S. a Key Small Cell 5G Network Market?

The U.S. is estimated to account for the largest market size during the forecast period with a CAGR of 22.4%. North America is an eminent leader in adopting advanced technologies. Operators across North America are expected to deploy small cell solutions on their 5G mobile infrastructures. Due to this, the demand for small cell 5G network is projected to rise in the region.

Key players in the United States are progressively constructing small cells to densify their networks, especially in metropolitan areas, while lowering costs in preparation for 5G installations. Sprint, AT&T, Verizon, and T-Mobile, for example, have taken a favourable approach to commercialising 5G networks.

 As a result of its potential to boost capacity in operator networks across a variety of locations and addresses, the adoption of small cell 5G network has become increasingly popular across a variety of industrial verticals. This is a significant component driving the rapid expansion of small cell 5G network market share.

What Countries in Asia Pacific are the Key Small Cell 5G Network Markets?

In terms of value, China is anticipated to dominate the market for small cell 5G network with a CAGR of 21.8% during the forecast period. This is attributed to the aggressive adoption of small cell 5G network infrastructure by major communication service providers such as China Mobile Limited, KT Corporation, Rakuten Mobile, Inc., and NTT Docomo Inc.

In addition, governments across key countries such as Japan, China, and South Korea are highly focused on releasing multiple sub-6GHz and mmWave frequencies to cater to the growing demand for small cell 5G network or high-speed data connectivity among large subscriber base. Consequently, the market in the region is anticipated to experience robust growth over the forecast period.

Category-Wise Analysis

What is the Small Cell 5G Network Market Outlook According to Different Segments?

On the basis of components, the global small cell 5G network market share is projected to be dominated by solutions, with a CAGR of 22.1%. To integrate many technological features of a network device, small cell 5G network are frequently used.

Due to its capacity to converge diverse hyperdense network topologies into advanced scalable architectures, the demand for small cell 5G network solutions has increased. As a result, the adoption of small cell 5G network is projected to rise.

During the projected period, the services segment is expected to increase at the fastest rate. For every necessity in service transitions, the majority of industry verticals opt for all-in-one package solutions.

Furthermore, due to its potential to boost capacity in operator networks across a variety of locations and addresses, the adoption of small cell 5G networks have become increasingly popular across a variety of industrial verticals. This is a significant component driving the rapid expansion of small cell 5G network market.

“The indoor segment is projected to lead the market due to the widespread use of next-gen small cells in various industries.”

On the basis of deployment mode, the indoor segment is projected to lead the small cell 5G network market during 2022-2032, with a CAGR of 21.8%. Non-residential applications include, among others, businesses, shopping malls, airports, and hospitals.

Furthermore, according to data released by China's Ministry of Industry and Information Technology (MIIT), high-value clients spend over 80% of their working hours indoors. As a result, small cell 5G network for indoor applications is expected to grow in popularity during the forecast period.

Competitive Landscape

The small cell 5G network market is neither fragmented nor consolidated. Ericsson, Huawei, ZTE, Cisco, and NEC are a few of the well-known players in the small cell 5G network market. To bring innovation, these businesses are engaging in mergers and acquisitions, strategic collaborations, and product development.

However, several innovative vendors have entered the small cell 5G network market, such as Baicells Technologies Co. Ltd, which may transform the competitive landscape throughout the forecast period.

What are the Recent Developments in the Field of Small Cell 5G Network Market?

• To build up their 5G network infrastructure, these operators have signed multibillion-dollar deals with network equipment providers like Samsung, Ericsson, Nokia, Huawei, and ZTE.
• Sprint claims to have 30,000 outdoor small cells, whereas T-Mobile claims to have 23,000 small cells or dispersed antenna system locations.
• Nokia Networks announced two new additions to its AirScale small cell portfolio in February 2019, extending 5G's strong performance both outside and indoors and supporting a wide range of use cases. A small millimeter-wave radio can deliver cost-effective 5G outdoor coverage in high-traffic venues like airports, stadiums, and crowded pedestrian zones.
• October 2018 - Qualcomm Incorporated's Qualcomm Technologies Inc. announced a collaboration with Samsung Electronics Co. Ltd to create 5G tiny cells, paving the way for huge 5G network speed, capacity, coverage, and ultra-low latency.

Key Segments

• By Frequency Band :

  • Low Frequency
  • MM Wave

• By Application :

  • Enhanced Mobile Broadband
  • Massive IOT
  • Massive Machine Type Communication and Ultra Reliable Low Latency

• By Component :

  • Solutions
  • Services
    • Consulting
    • Integration and Deployment
    • Training and Support

• By Radio Technology :

  • 5G New Radio (NR) Standalone
  • 5G NR Non-Standalone

• By Deployment Mode :

  • Outdoor
  • Indoor

• By Cell Type :

  • Picocells
  • Femtocells
  • Microcells

• By End-User :

  • Telecom Operators
  • Enterprises

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)