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The global base station antenna market size was valued at USD 7.24 billion in 2021. The market is projected to grow from USD 8.21 billion in 2022 to USD 23.98 billion by 2029, exhibiting a CAGR of 16.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 12.1% in 2020 as compared to 2019.
The market is expected to show significant growth owing to wide applications of base station (BST) in 4G/LTE and 5G communication infrastructures. The rising implementation of 5G infrastructures across countries to enhance network service performance and user experience is likely to surge the demand for base station antenna. As per the industry experts, antennas are witnessing tremendous demand in areas, such as connected cars, precision agriculture, military & defense, and smart cities, among others, owing to their efficient and reliable wireless communication capabilities. They also offer excellent connectivity in the highly-dense network areas, which is important for ensuring stability in mobile communication and 5G infrastructures. For example,
Supply Chain Disruptions Triggered to Impact Market Growth
The coronavirus outbreak has significantly impacted manufacturing plants and factories worldwide. Similarly, the pandemic has also affected the antenna manufacturing factories. Due to the outbreak, 5G infrastructure providers announced the extension in 5G rollout plans during 2020. For instance, CommScope Holding Company’s net sales fell by USD 70 million in 2020 due to supply chain disruptions. Considering the present scenario and the uncertainty of the pandemic, the company postponed its entire 2020 work plan to another year. Similarly, the Swedish company Ericsson and Rakuten Mobile of Japan postponed their 5G rollouts, which are now expected to be completed by 2022.
Furthermore, the unavailability of components and equipment required for antennas has disrupted several production plants. Component providers have faced delivery issues amid the temporary closure of borders and other disruptions in the supply chain. For instance, PCTEL Inc. suffered a 19% drop in its revenues due to the pandemic crisis of 2020. This has deeply impacted the base station antenna market growth. Besides the virus outbreak, the trade war between China and the United States also impacted 5G rollout plans and other related businesses. In April 2020, for instance, citing security concerns, the U.S. Federal Communications Commission banned all Chinese Telecom companies’ operations in the U.S. This has inevitably affected the supply and demand dynamics of the market as China is the key provider in the market. Thus, the disruption in 5G infrastructure plans, manufacturing delay and supply chain disruption amid the pandemic has negatively impacted the market growth. However, post-pandemic, as the economy improves, the market trend is expected to return to its original growth rate.
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High Capacity Smart Antennas to Improve Mobile Communication Infrastructure
Smart antennas offer superior wireless network capacity and coverage range to cater to the seamless voice, data, and control services of 4G and 5G technologies. These antennas have emerged as a promising technology to improve the performance of mobile communication. Smart antennas use the beamforming technique that reduces interference levels and improves the network capacity of the network operator.
The implementation of smart antennas increases the system's user capacity and coverage, and thus supports providing superior quality services. Also, they offer a maximum data rate, which helps operators provide efficient services for multiple users at the same time. This is boosting the application of smart antennas in mobile communication services. Similarly, the advancements in wireless systems are creating strong demand for smart, high-efficiency, and intelligent adaptive antennas. Thus, the capabilities of smart antennas are likely to surge their demand in mobile communication infrastructure.
Growing 5G Infrastructure to Drive the BST Antenna Market Growth
5G infrastructures offer high speed, low latency, and maximum coverage networks, causing the demand for 5G technology to rise rapidly across countries. China, the U.S., the U.K., and South Korea are aggressively implementing 5G technology to provide better quality communication services. The antenna is one of the key components in 5G infrastructures as it supports its high network capacity and data rates. The rapid implementation of 5G technology is expected to boost the demand for base station antenna. For instance,
Thus, the growing demand for 5G technology is expected to surge the demand for these antennas.
Adverse Health Impacts of RF Radiation to Hamper the Market Growth
The network of the base station is essential for the transmission of wireless connections. The antennas deployed at the base station transmit and receive radio waves as radio frequency from the connected devices to the base station. To establish a wireless connection or for communication, these radio waves are very important. As the number of cellular subscriptions is increasing, the number of base station antennas is increasing rapidly.
However, users have growing concerns regarding the negative impacts on antennas’ RF radiation. Various medical research was carried out in the past year to understand the impact of base station RF radiation. Some of these medical researches include epidemiological studies, in-vitro studies, animal studies, and human volunteer studies, among others. These studies reported little adverse evidence of these RF radiations on health. This is expected to hamper the market share.
High Capacity of Small Cell Antennas to Augment the Demand for 5G RAN
Based on type, the market is categorized into omni antenna, sector antenna, dipole antenna, multibeam antenna, small cell, and others. Among these, omni antennas are expected to dominate the type segment during the forecast period. These antennas offer uniform 360-degree directional vertical coverage, which helps provide stable connections in congested network areas.
Small cell antennas are expected to gain considerable traction due to their high wireless network capacity offering in densely connected areas. The exponentially growing demand for mobile networks and indoor applications is likely to drive the demand for small cell antennas. The deployment of these antennas is also growing on account of their high coverage capabilities for indoor and outdoor services.
Similarly, the multibeam antenna segment is gaining steady traction as these antennas offer better network coverage at affordable prices. Their better service quality at lower costs is driving the demand for multi-beam antennas in 3G/4G LTE.
Demand for Cellular Connections to Drive the Antenna Adoption in Urban Areas
Based on provision/sector, the market is segmented into semi-urban, urban, and rural. Among these, the deployment of base stations is more in urban and semi-urban areas owing to the huge population requiring cellular connections, a growing number of smart projects, and rapid growth in smart infrastructures, among others.
However, the rural segment is expected to show potential growth opportunities during the forecast period. The adoption of antennas is likely to grow in rural areas, owing to increasing demand for maximum area coverage.
Growing Number of Connected Devices to Boost 5G Demand
Based on technology, the market is segmented into 3G, 4G/LTE, and 5G. The 4G/LTE segment is expected to lead throughout the forecast period as 4G offers fast data transmission compared to 3G technology. 4G technology is expected to dominate the market in the forecast period despite the 5G infrastructure rollouts. According to GSMA’s 2020 report, 52% of global connections are still connected through 4G and are expected to grow to 56% by 2025.
5G technology is expected to show a substantial growth rate during the forecast period owing to the growing demand for higher bandwidth and wider coverage network for handling increasing data traffic. The rapid implementation of 5G technology is expected to boost the demand for more advanced base station antenna. The growing need to connect devices and equipment is likely to drive the market.
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Increasing Demand for Network Services to Boost the Mobile Communication
Based on application, the global market is segmented into mobile communication, intelligent transport, the Industrial Internet of Things (IIoT), smart city, military & defense, and others (precision agriculture, remote monitoring & control).
The mobile communication and military & defense segments are expected to lead during the forecast period. The increasing number of network connections is likely to drive the demand for antennas. These antennas offer excellent network coverage to provide better connectivity and user experience. The ongoing projects related to 5G mobile communication technologies are further expected to accelerate the demand for these antennas.
The military & defense sector depends heavily on secure communication and precision connectivity. The increasing demand for antennas for conveying critical field data in challenging environments is expected to drive the adoption of base station antenna in military and defense applications.
Further, the need for these antennas in smart cities for continuous real-time connection between devices and solutions is expected to fuel the growth of the market during the forecast period.
Similarly, intelligent transportation is likely to gain steady growth during the forecast period. The growing demand for a wider connectivity range and capacity in smart transportations, such as connected cars, driver-assisted cars, and smart traffic insights, among others, is likely to surge the demand for base station antenna. These antennas enhance the connectivity and performance of connected vehicles to provide efficient services.
Asia Pacific Base Station Antenna Market Size, 2021 (USD billion)
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The global market scope is classified across five regions, North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific is expected to dominate the market share during the forecast period. The increasing intensity of 5G rollouts across countries, such as China, South Korea, and Japan, is expected to drive the base station antenna demand in this region. China is expected to lead the market during the forecast period. As per the Ministry of Industry and Information Technology (MIIT) of China 2020, 5G mobile shipments reached 59.85 million units. India is also expected to gain prominence owing to the rapidly transforming telecom industry and an increasing number of mobile subscribers. Similarly, South Korea is also growing significantly, owing to the increasing focus on 5G infrastructure.
The market in Europe is expected to grow at a maximum growth rate during the forecast period, owing to the expanding mobile network services and infrastructures. The rising investments in 5G infrastructures are likely to boost the market in the region. At present, Nokia, Ericsson, and Huawei are believed to be the most reliable and credible 5G antenna suppliers in Europe.
North America is expected to hold the second-largest market share and is predicted to showcase steady growth during the forecast period. The U.S. is expected to gain traction owing to the vast rollout of 5G infrastructures. Also, the U.S. mobile users’ growing interest in live events, super bowl stadium matches, and concerts is driving the demand for efficient antennas for better coverage.
The Middle East & Africa is expected to display significant growth during the forecast period, owing to increasing investments in 5G infrastructures. The GCC countries are highly focused on providing 5G mobile services to smartphone users.
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South America is also expected to show significant growth owing to increasing internet penetration and mobile users. The rapidly growing subscriber base is driving the demand for efficient antennas.
Expansion of Antenna Business through Strategic Acquisitions and Collaborations
The leading players in the market are expanding their antenna product portfolio to gain maximum base station antenna market share. The vendors are collaborating and acquiring key antenna manufacturers to widen their offerings and gain additional expertise related to the market. For instance, in 2019, CommScope Holding Company, Inc. secured antenna patents from the acquisition of Fractus S.A. Moreover, the company is also launching innovative base station antenna to cater to the rising need for 5G infrastructure.
The other key players, such as Huawei Technologies, Telefonaktiebolaget LM Ericsson, PCTEL, Inc., Amphenol Procom, and Nokia, among others, are making huge investments in developing new advanced antennas to meet the standard requirements needed for 5G infrastructure. The companies are investing in research services to develop innovative technologies. They are also collaborating with local players to expand their businesses globally.
April 2021 – Baylin Technologies Inc. received approval for its two antennas to deploy 5G macro by a U.S. Tier1 carrier. The 8-port 5G antenna and a 20-port 4G/5G antenna received approval for broad use across North America.
May 2021 – PCTEL, Inc. acquired Sweden-based company Smarteq Wireless, a developer of external antennas. This acquisition helped the PCTEL to expand in Europe, owing to strong local presence, channel partners, and expertise of Smarteq Wireless.
An Infographic Representation of Base Station Antennas Market
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The global base station antenna market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends, competition landscape, market dynamics, and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD billion)
By Type, Provision/Sector, Technology, Application, and Geography
The market is projected to reach USD 23.98 billion by 2029.
In 2021, the market size stood at USD 7.24 billion.
The market is projected to grow at a CAGR of 16.5%
Mobile communication is estimated to lead the market.
Growing 5G infrastructure will drive the market growth.
Radio Innovation Sweden AB, CommScope Holding Company, Inc., Comba Telecom Systems Holdings, Ltd., Huawei Investment & Holding Co., Ltd., PCTEL, Inc., Baylin Technologies Inc., Rosenberger Hochfrequenztechnik GmbH & Co. KG, Nokia Corporation, and Amphenol Procom Inc. are the top players in the market.
Asia Pacific is expected to hold the highest market share.
Europe is expected to grow with a remarkable CAGR.
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