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The global small cell 5G network market size was valued at USD 740.8 million in 2020. The market is expected to grow from USD 859.4 million in 2021 to reach around USD 17,944.5 million in 2028 at a CAGR of 54.4% in 2021-2028. 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. Based on an industry analysis of fortune business insights, the market exhibited a growth rate of 12.1% in 2020.
In the scope, we have included several leading players such as CommScope Inc., Airspan Networks Inc., Fujitsu Limited., Comba Telecom Systems Holdings Ltd., Radwin, Casa Systems, Inc., and Ceragon Networks Ltd. These key players offer different 5G network products and services such as Radio Dot System and small indoor cells by Ericson, Air Scale microRRH and AirScale indoor Radio by Nokia Corporation, Qualcomm 5G and 4G RAN platforms for this type of networks and UltraSON by Qualcomm Technologies, Inc.
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 government and key players in various IT projects such as 5G infrastructure and others, will aid market growth. For instance, in April 2020, the Federal Communications Commission (FCC) has funded around USD 9 billion to establish 5G network infrastructure across the U.S. The investment would assist 5G connectivity across the country and create opportunities for key payers to expand. According to the FCC, the fund was released for 5G services deployments for the small cell market rural areas.
Increasing Data Traffic and Surge in Internet Penetration around the Globe to Aid Market Growth
The increasing data traffic and surge in the number of internet users around the globe have propelled the demand for market growth. According to the International Telecommunication Union Report in 2020, data traffic created by private 5G networks reached around 51,115 Exabyte (EB) monthly worldwide globally and is projected to reach 77.46 million EB per month by 2027. Several leading players in the market are launching small cells based on advanced technology with higher bandwidth for 5G network deployments within the urban and rural areas. For instance,
Suspension of Various 5G Network Deployment Activities during Pandemic to Decline Demand
Globally, the Covid-19 pandemic has disrupted IT and networking activities owing to government restrictions on production, deployment, innovation centers, and ongoing developments. The overall demand in the market has declined due to a delay in deployment of the 5G infrastructure and closure of deployment sites. According to Kagan's 2020 global survey on 5G infrastructure, around 63% of mobile network operators [have slowed down their 5G deployment activities during the pandemic. Also, according to Gartner Inc., wireless infrastructures such as 5G deployments, broadband connections, and others declined by 4.4%, reaching around USD 38.1 billion in 2020.
Also, several leading companies in the market have planned to develop and launch small cell platforms during the post-pandemic. Several government authorities are investing a huge amount for the 5G network deployments for high-speed internet connectivity. For instance,
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Increase in development of Indoor and Outdoor Small Cells Offerings Based on Advanced Technology to Aid Market Growth
Several leading players in the market are launching advanced technology-based outdoor and indoor 5G networks for facilitating internet connectivity. Ericsson has developed a small cell 5G Radio access network to meet the growing demand for advanced indoor 5G mobile broadband performance. Additionally, Samsung Group has planned to deploy small cells in large volumes for indoor coverage for Reliance Jio for the Indian population. Several leading players in the market have launched and developed indoor network connectivity 5g small cells. For instance,
Increasing Deployment of 5G Network by Government and Adoption of Internet of Things (IoT) Devices to Aid Market Growth
Globally, deployment of 5G infrastructure is rapidly growing in developed countries such as United States, Germany, France, U.K., and others. According to Forbes, in 2020, more than 1,945 small cells will be deployed, and the private network deployments will reach around 1.56 million by 2027. Also, according to the Cellular Telecommunications Industry Association (CTIA), in 2020, an estimated more than 417,215 small cell sites have been installed in the United States. The rising deployment of 5G networks around the globe has strengthened the market growth.
According to the Global System for Mobile Communications (GSMA), number of 5G connections is around 10 million in 2019 and is projected to reach about 1.8 billion by 2025. Further, in June 2020, according to the Global Mobile Suppliers Association (GSA), around 81 Mobile Network Operators (MNOs) across 42 countries has launched 5G commercial services. Also, about 385 MNOs across 125 countries are planning to invest in 5G deployment.
Further, the rising adoption of internet of things (IoT) devices, smartphones, wireless devices, and others have strengthened the demand for robust internet connections. In addition to this, growing investment by governments and telecom operators for the infrastructure deployments of the 5G network is expected to strengthen the small cell 5G network market growth.
High Costs of Deployment of Small Cell Networks Infrastructure Impede Market Growth
Deployment of 5G infrastructure in the initial stage is a costly affair for the network operators. Several leading players are investing a huge amount in setting up a small cell network. The cost of resilient strength fiber and power distribution in these networks is a major costing restraint. According to AT&T, Inc. estimate, the average deployment costs of a small cell network ranges from USD 6.8 Million to USD 60 Million, depending upon the rural and urban areas. The cost of installing the 5G network in rural areas is high compared to urban areas due to lack of availability of the resources.
Growing Demand of Small Cells 5G Network Across Enterprises to Drive Market Growth
The global market is bifurcated into residential and SOHO, enterprises, and others based on the applications. Enterprises have the largest share in the market, owing to rising investment, and the launching of 5G devices around the globe. For instance,
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Rising Launching of the New Communication Platform by the Leading Players is expected to Drives the Market Growth
Based on the communication infrastructure, the market is bifurcated into femtocell, metrocell, picocell, and microcell. Femtocell cell is expected to increase with the highest growth rate during the forecast period, owing to the increasing launching and deployments of 5G small cells. For instance,
Also, the market size of metrocell, picocell, and microcell are significantly increasing owing to a surge in the number of internet of things (IoT) devices and internet penetration. According to the International Telecommunications Union (ITU) Organizations, approximately 25 billion connected devices will be sold in 2020, and its demand is continuously increasing rapidly.
North America Small Cell 5G Network Market Size, 2020 (USD Million)
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Geographically, the market is fragmented into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is estimated to dominate the market during the forecast period. The growth is due to increasing investment and other strategies by the leading players and governments in the IT & telecommunication sector. According to a recent study by Small Cell Forum Organization, enterprises in North American countries deployed around 400,000 small cells during 2018 compared to 292,000 in 2017.
In Europe, government authorities invested a considerable amount in deploying the 5G network to meet the growing demand for high-speed internet. The European Commission has made a partnership with European ICT industry players with a public investment of USD 825 million and a private investment of USD 3.5 billion in 2020.
Asia-Pacific region is growing with the highest CAGR, owing to the rising adoption of advanced technology and rising investment in the 5G technology by the leading players for high-speed internet. For instance,
Further, the Middle East and Africa region is growing at a moderate pace with the rising investment by the government projects and the rising number of 5G connections. According to GSMA Intelligence Report, 5G mobile connections in the MENA region is expected to reach around 50 million by 2025 and around 20 million in the GCC Arab countries.
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In Latin America, government and enterprises across countries such as Brazil and Mexico have shown the significant adoption of IoT devices. According to the International Data Corporation (IDC) estimation, approximately 400 Mn IoT devices were linked throughout Latin America and the Caribbean countries in 2020. They are expected to reach around 1 billion devices by 2023.
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 the 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 launch, mergers, partnerships, collaborations, and acquisitions to remain competitive. For instance,
An Infographic Representation of 5G Small Cell Market
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The global small cell 5G network market research report highlights leading regions worldwide to understand the user better. Furthermore, the report provides insights into the latest industry and market trends and analyses technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD million)
Applications; Communication Infrastructure; and Geography
By Communication Infrastructure
The market is projected to reach USD 17,944.5 million by 2028.
In 2020, the market size stood at USD 740.8 million.
The market is projected to grow at a CAGR of 54.4%.
The enterprises are likely to lead the market.
The increasing number of 5G connections around the globe is escalating the market growth.
NEC Corporation, Nokia Corporation, CommScope, Inc., Samsung Group, Cisco Systems, Inc., and Huawei Technologies Co., Ltd. are the top players in the market.
North America is expected to hold the largest global share in the small cell 5G network market share.
Femtocell in the communication infrastructure holds largest share in the market.
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