Small Cell 5G Network Market to Hit $28,476.4 Million by 2027: Grand View Research, Inc.

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Aug 17, 2022, 08:00 ET

SAN FRANCISCO, Aug. 17, 2022 /PRNewswire/ -- The global small cell 5G network market size is estimated to be worth around USD 28.5 billion by 2027, advancing at a substantial CAGR of 77.6% during the forecast period from 2020 to 2027. The ongoing advancements in 5G technology that have become more frequent with the passage of time are primarily responsible for the promising development of this industry. Small cell 5G networks allude to the base stations that serve a small segment of a macro site, being widely deployed in densely-populated areas such as railway stations, malls, stadiums, and any other location that has a high data capacity requirement. As the development of 5G infrastructure assumes a high significance in the telecom industry, the need to provide consumers with high-speed, uninterrupted data connectivity in various settings such as industrial, healthcare, and entertainment means that small cell networks has become blatantly obvious.

A better understanding of small cell 5G networks would be a cross between a Wi-Fi router and a macrocell (a base station that sends and receives signals through antennas and towers, offering a larger coverage) for cellular networks. Small cells have a compact size and consume less power, which serves to highlight their importance in metropolitan regions and cities.

Key Industry Insights & Findings from the report:

Asia Pacific captured the largest market share of more than 30% in 2019 and is estimated to grow at a CAGR of 72.8% from 2020 to 2027. The growth is attributed to the rapid investments in deploying 5G infrastructure by major telecom operators across key countries such as China, Japan, and South Korea.
The robust deployment of small cell 5G networks in homes and offices to leverage enhanced bandwidth capacity is expected to lead to the indoor segment growth from 2020 to 2027.
With huge investments by key players to deploy cloud-based RAN to reduce the overall infrastructure costs, the virtualized network architecture segment is anticipated to see massive growth over the forecast period.
With the rapidly growing deployment across several mass gathering places such as stadiums, malls, and airports, the commercial segment is expected to capture the largest market share from 2020 to 2027.
Key market players such as Ericsson and Nokia Corporation are actively focused on developing new 5G-based small cells to strengthen their product portfolios and their market presence across several geographies.

Read 121-page market research report, "Small Cell 5G Network Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By Network Model, By Network Architecture, By Deployment Mode, By Frequency Type, By End-user, And Segment Forecasts, 2020 - 2027", published by Grand View Research.

Small Cell 5G Network Market Growth & Trends

The small cell 5G network industry has been classified mainly on the basis of component infrastructure, which includes femtocells (offer output power of 0.001-0.25 W, with a cell radius of 0.010-0.1 Km), picocells (offer output power of 0.25-1 W, with a cell radius of 0.1-0.2 Km), and microcells (offer output power of 1-10 W, with a cell radius of 0.2-2 Km). Femtocells have witnessed high demand in recent years, as they are extremely suitable in enclosed spaces such as homes, hospitals, and offices. Femtocells are a very economical option for small businesses to improve indoor coverage, without the need of an operator, and thus their demand has remained steady.

Microcells are very easy to install and can be affixed to any street furniture, notably lampposts and sides of buildings, and are able to serve a large user base. The continued development of various public places such as shopping malls and stadiums, wherein the availability of fast and efficient networks has become a necessity, has helped maintain the development of the 5G small cell industry. For example, Ericsson had a partnership with soccer club FC Barcelona, where they offered their 5G services at the renowned Camp Nou, the home of the Spanish club.

The small cell 5G network can be deployed either indoors or outdoors. The continued growth in the number of offices and small establishments has meant that there has been a steady demand for the installation of 5G small cells in the indoor settings.

According to Ericsson, 37% of the macro traffic in a dense urban setting was served for indoor users, which points towards the importance of deployment of small cells to address the indoor demographic. On the other hand, the rapid development of smart cities has meant that outdoor small cells have an important role to play in the development of the industry. Aspects such as Internet of Things, smart transportation, and intelligent traffic management has necessitated the availability of high-speed data capacity.

Need for advanced telecom infrastructure is driving the market

Small cell 5G networks are being set up and offered by a number of companies, primarily to cater to the needs of the student and professional demographics. The majority of the users of 5G are present indoors, either in offices, restaurants and pubs, or homes. According to a recent report by Gartner, 80% of the overall data consumption is accounted by indoor 5G coverage. Furthermore, the majority of the industry growth is expected to be driven by private enterprises, as per a study by Rethink RAN Research. According to this, the number of 5G small cell deployments were 1,945 in 2020, and the number is expected to rise substantially to 1.56 million by 2027.

5G small cell networks are expected to offer a lot of scope for enterprises, as they offer high connectivity scope due to eMBB (enhanced Mobile Broadband) and mMTC (massive Machine Type Communications) capabilities. Furthermore, enterprises are continuously evolving in terms of operational area and their overall site size, which is perfect for any additional deployment of small cells. Another point that works in favor for small cell networks is the widespread use of Internet, the high volume of data consumption, and the still-advancing smartphone adoption. According to the Ericsson Mobility Report released in November 2021, the global consumption of mobile data is set to rise from 65 billion gigabyte in 2021 to 288 billion gigabyte by 2027; additionally, 5G is expected to be responsible for 62% of the traffic by 2027. All these factors are expected to bode well for the industry growth.

Recent Market Developments

A number of companies such as Huawei, Samsung, ZTE, Ericsson, Altiostar, Airspan Networks, Fujitsu, CommScope, and Ceragon have made significant strides in the small cell 5G network market, especially over the past few years. The launch of new products and partnerships in different end-use sectors are the main strategies involved in their growth.

Some of the recent developments involved in this space include:

In June 2022, Proptivity announced an investment of SEK 3 billion in Gigabit 5G networks. This will be powered by Ericsson's Radio Dot System, aiding tenants and visitors of homes to offer quality connectivity infrastructure
In December 2021, Airspan Networks announced that its AirStrand 2200 solution had become the first Citizens Broadband Radio Service (CBRS) 5G Stand Alone small cell radio to receive FCC approval for United States network usage. The solution utilizes the Qualcomm FSM100 5G RAN Platform, operating on the CBRS n48 spectrum band.

Small Cell 5G Network Market Segmentation

Grand View Research has segmented the global small cell 5G network market on the basis of component, network model, network architecture, deployment mode, frequency type, end-user, and region:

Small Cell 5G Network Market - Component Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

Hardware

Picocell
Femtocell
Microcell

Services

Consulting
Deployment & Integration
Training and Support & Maintenance

Small Cell 5G Network Market - Model Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

· Standalone

· Non-standalone

Small Cell 5G Network Market - Architecture Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

Distributed
Virtualized

Small Cell 5G Network Market - Deployment Mode Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

Indoor
Outdoor

Small Cell 5G Network Market - Frequency Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

Sub-6 GHz
mmWave
Sub-6GHz + mmWave

Small Cell 5G Network Market - End-user Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

Residential
Commercial

Corporates/ Enterprises
Hospitals
Hotels & Restaurants
Malls/Shops
Stadiums
Others

Industrial

Smart Manufacturing
Energy & Utility
Oil & Gas and Mining

Smart City
Transportation & Logistics
Government & Defense
Others

Small Cell 5G Network Market - Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2027)

North America

U.S.
Canada
Mexico

Europe

U.K.
Germany
Italy
Russia

Asia Pacific

China
India
Japan
South Korea

South America

Brazil

The Middle East & Africa (MEA)

List of Key Players of Small Cell 5G Network Market

Huawei Technologies Co., Ltd.
Samsung Electronics Co., Ltd.
Nokia Corporation
Telefonaktiebolaget LM Ericsson
ZTE Corporation
Fujitsu Limited
CommScope Inc.
Comba Telecom Systems Holdings Ltd.
Altiostar
Airspan Networks
Ceragon
Contela
Corning
Baicells Technologies

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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