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The global small cell 5G network market size was valued at USD 3.14 billion in 2022 and is projected to grow from USD 4.08 billion in 2023 to USD 52.73 billion by 2030, exhibiting a CAGR of 44.1% during the forecast period.
Small cell 5G networks are low-powered cellular radio access modules that function in a spectrum with a range of 10 meters to around a few kilometers. Rising investment by governments and key players in various IT projects, such as 5G infrastructure and others, will aid market growth. For instance, in October 2022, HFCL, an Indian-based telecom operator, partnered with Qualcomm to enhance their all-in-one small cell 5G modules. The module supports standalone and non-standalone modes while offering flexibility in terms of deployment in buildings, rooftops, traffic hotspots, and street poles. Through this partnership, HFCL aims to increase rollouts and enhance their 5G user experience for improved efficiency.
The increasing data traffic and surge in the number of internet users around the globe have propelled the demand for small-cell 5G networks and aided in market growth. According to Ericsson’s Mobile Data Traffic Outlook, the proportion of mobile data traffic attributed to 5G was projected to reach 17% by the conclusion of 2022, rising from 10% at the end of 2021. Additionally, it is anticipated that this proportion should further increase to 68% by 2028. Several leading players in the market are launching a small cell 5G network based on advanced technology with higher bandwidth for small cell 5G deployments within urban and rural areas. For instance,
Suspension of Numerous 5G Deployment Activities during the Pandemic to Decline Market Growth
Globally, the COVID-19 pandemic has disrupted IT and networking activities owing to government restrictions on production, deployment, innovation centers, and ongoing developments. The global impact of COVID-19 has shown a slight decline in the market, and it witnessed slow growth across all regions amid the pandemic. The overall demand in the market has declined due to a delay in the deployment of the 5G infrastructure and the closure of deployment sites. According to Kagan's 2020 global survey on 5G infrastructure, around 63% of mobile network operators had reduced their 5G deployment activities during the pandemic. Additionally, according to a Gartner report, wireless infrastructures such as 5G deployments and broadband connections, among others, declined by 4.4%, reaching around USD 38.1 billion in 2020.
Furthermore, several leading companies in the market have also innovated and launched small-cell 5G network solutions after the post-pandemic period. They are also investing vast amounts in 5G network deployments to extend their high-speed internet connectivity services in compliance with government regulations. For instance,
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Surging Developments in Advanced Indoor and Outdoor Small Cell Offerings to Aid Market Growth
Several leading players in the market are launching advanced indoor and outdoor 5G networking technologies for enhancing internet connectivity. In February 2023, Ericsson developed a small cell 5G Radio access network to meet the growing demand for advanced indoor 5G mobile broadband performance. Additionally, Samsung Electronics deployed small cell 5G network infrastructure to Reliance Company in large volumes for indoor coverage for the Indian population. Several leading players in the market have also developed and launched indoor and outdoor small cell 5G networks. For instance,
Surging Adoption of 5G Network Technologies by Governments and Implementation of Internet of Thing (IoT) Devices to Aid Market Growth
Globally, the deployment of 5G infrastructure is rapidly growing in developed countries such as the U.S., Germany, France, the U.K., and others. According to Small Cell Forum (SCF) report, there should be 5.3 million small cells deployed in the enterprises' sector by 2027, which consists of 57% of the total deployments in the forecast. Also, according to the Cellular Telecommunications Industry Association (CTIA), in 2021, an estimated more than 1,26,000 small cell sites (excluding microcell) have been installed in the U.S., and have been estimated to rise up to 1,50,399 units in 2022. The rising deployments of small cell 5G networks across the globe have strengthened the global market growth.
According to the Global System for Mobile Communications (GSMA), there were 252 industrial 5G network providers operating in 86 countries serving more than 1 billion users. The 5G connection is expected to grow to 5 billion users by 2030.
Furthermore, the increasing implementation of Internet of Things (IoT) devices into smartphones, wireless devices, and others has strengthened the demand for robust internet connections. In addition, the rising adoption of Open RAN small cell networks by the enterprises and telecommunication industry is expected to strengthen the small cell 5G network market growth.
Higher Deployment Costs of Small Cell Networks Infrastructure to Hamper Market Growth
Deployment of 5G infrastructure in the initial stage is a costly affair for the network operators. Key players are investing a significant amount of resources in the setup of small cell 5G network infrastructure. The cost of resilient strength fiber and power distribution in these networks is a major financial restraint. According to AT&T Inc., the average costs of a small cell network setup ranges from USD 6.8 Million to USD 60.0 Million, depending upon the rural and urban areas. The cost of installing the 5G network infrastructure in rural areas is high compared to urban areas due to the lack of availability of resources.
Surging Practice of Back-to-Work and Work-from-Office to Boost Indoor Deployments
The market is bifurcated into indoor and outdoor on the basis of operating environment. Indoor deployment of a small cell 5G network entails the installation of networking electronics within buildings such as commercial establishments, shopping arenas, and shopping centers, with the aim of enhancing indoor coverage and connectivity. This facilitates improved connectivity and higher data speeds for users within those indoor environments. Rising adoption of work-from-office practices and the increasing demand for high-speed network infrastructure are fueling the demand for small cell 5G networks.
Additionally, outdoor deployment of 5G small cells involves installation in outdoor environments, which include utility poles, street lights, and rooftops to enhance outdoor coverage and capacity, particularly in densely populated areas.
Increasing Demand for Small Cell 5G Networks across Industries to Drive Market Growth
The market is distributed into residential, commercial, and industrial based on application. Industrial segment is estimated to hold the largest share in the market, owing to rising investment and surging adoption of 5G devices around the globe. For instance,
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Latest Launches of Integrated Communication Platforms by Prominent Players to Fuel the Market Growth
Based on small cell type, the market is segmented into femtocell, metrocell, picocell, and microcell. Femtocell segment is projected to dominate the market with the largest share during the forecast period, owing to increasing innovations and deployments of 5G small cells. For instance,
Additionally, the market size of metrocell, picocell, and microcell is significantly increasing, owing to the rising implementation of IoT devices and internet penetration. According to IoT Analytics, there were approximately 14.3 billion connected active endpoints in 2022 and is projected to increase upto 16% into 16 billion in 2023.
Asia Pacific Small Cell 5G Network Market Size, 2022 (USD Billion)
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Geographically, the market is distributed into five major regions, North America, South America, Europe, Middle East & Africa, and Asia Pacific.
Asia Pacific dominated the small cell 5G network market share in 2022, owing to the rising adoption of advanced technology and investment in 5G technology by the leading players for high-speed internet. Rapid technological advancements in China, Japan, and South Korea are boosting the networking and 5G infrastructure market in the region. Additionally, IDC forecasts the IoT spending of the region to reach USD 437 billion in 2025.For instance,
North America is projected to demonstrate healthy market growth during the forecast period. The growth is due to the increasing investment and growth strategies adopted by the leading players and governments in the IT & telecommunication sector. According to the Small Cell Forum Organization, North America played a crucial role in driving the implementation of small cells during the 2010s and is expected to reach its highest annual deployment rate in 2023. It is also expected to contribute to 13% of the global deployment in 2027.
In Europe, government authorities have invested significant resources in deploying 5G networks to meet the growing demand for the latest and high-speed internet. The European Commission, in coordination with regional IT players, has dedicated 20% of its resilience and recovery facility from each country toward digital transition.
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In South America, governments and enterprises across countries such as Brazil and Argentina have shown a significant adoption of IoT devices. Furthermore, the Middle East & Africa is estimated to showcase the highest growth rate during the forecast period, owing to innovative city initiatives and rising investment by the governments in transformation projects and the 5G industry. According to the GSMA Intelligence Report, 5G mobile connections in the MENA region are expected to reach 50 million by 2025, with over 20 million in the GCC countries.
Players are Offering Diverse 5G Small Cells Portfolio to Expand Market Opportunity
Governments in developed countries are focusing on deploying the 5G network solutions and services such as the 5G RAN network architecture in urban and rural areas. Major players are expanding their 5G offerings by launching customized advanced 5G networks to cater to the requirements. The leading players in the market are adopting several business strategies, such as product launches, mergers, partnerships, collaborations, and acquisitions, to remain competitive. For instance,
An Infographic Representation of 5G Small Cell Market
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The research report highlights leading regions worldwide to understand the user better. Furthermore, the report provides insights into industry and market trends and analyses technologies deployed rapidly globally. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
CAGR of 44.1% from 2023 to 2030
Value (USD Billion)
By Operating Environment, Application, Small Cell Type, and Region
By Operating Environment
By Small Cell Type
According to Fortune Business Insights, the global market was valued at USD 3.14 billion in 2022.
The market is likely to grow at a CAGR of 44.1% over the forecast period (2023-2030).
Femtocell is expected to lead the small cell type segment due to cost-effectiveness and diverse deployability.
The market size in Asia Pacific stood at USD 1.09 billion in 2022.
Surging adoption of 5G network technologies by governments and implementation of Internet of Things (IoT) devices to aid market growth.
Some prominent players in the market are Nokia, Ericsson, Sterlite, and Huawei.
The U.S. dominated the market in terms of market size in 2022.
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