Small Cell 5G Network Market - Growth, Trends, and Forecasts (2022 - 2027)

The Small Cell 5G Network Market is expected to witness a CAGR of over 37% during the forecast period (2022-2027). 5G small cells will likely be the foundation of future global 5G networks. The deployment of 5G small cells at a large scale and required speed throughout the world is made possible by industry coordination, making 5G a reality. Although 5G promises to be cheaper and faster, it necessitates the expansion of the wireless network using tiny cells.

Key Highlights

• Small cells are essential for the current environment, especially for applications that demand more bandwidth and the growing number of linked devices. For instance, according to Cisco Systems Inc, 500 billion devices are anticipated to be online by 2030. Additionally, 5G telecom providers are concentrating on installing tiny cells in low-frequency bands to provide customers with services with increased bandwidth.
• The rising mobile data traffic is positively augmenting the market's growth. The global mobile data traffic forecast from Cisco Visual Networking Index (VNI) predicts that from 2017 to 2022, mobile data traffic will increase at a CAGR of 46%, reaching 77.5 exabytes per month. By 2022, a 5G connection will produce 2.6 times as much traffic as the typical 4G connection, according to Cisco's study.
• Mobile data traffic is experiencing exponential growth, driven by data-capable devices and high-bandwidth applications (APPs). Small cell deployment is a top priority for the various operators, with 60% of the operators believing them to be a crucial component of their 4G services. Leading carriers like Vodafone, AT&T, and Softbank have already used their macro networks and are differentiating themselves with small cell technologies. For instance, Verizon has installed tiny cells in various US cities, such as New York, Chicago, Atlanta, and San Francisco.
• In addition, 5G would be deployed on the existing cellular radio frequencies but may enable operators to enhance and address higher radio frequencies (over 20 GHz) to make it operable, especially for mobile services. Also, deployment at these frequencies is only possible in constrained areas, and the signal penetration gets restricted as it does not go through walls. This boosts the adoption of small cells for in-building applications, with excellent connectivity for smartphones and IoT devices.
• The COVID-19 outbreak has had a severe effect on the mobile sector. In the short term, the 5G rollout in several markets will be delayed further, and its services will be the hardest hit. Consumers may be unable to spend on small cell 5G devices as it is still considered niche. According to GSMA Intelligence's consumer survey, most of the respondents in most markets had limited interest in upgrading to 5G services. For instance, according to the report, nearly 80 % of consumers in the United Kingdom did not plan to upgrade.

Key Market Trends

Usage of Small Cell by Telecom Operators is Expected to Grow Significantly

• Small cells are specially equipped to handle large data rates for mobile broadband and users of the Internet of Things (IoT), as well as dense populations of low-speed as well as low-power devices. They are ideal for the 5G rollout because of this characteristic, which offers millisecond latencies, a million devices per square mile, and extremely high speeds.
• Owing to this, small cell technology is being mainly used by telecom operators around the world to bring out 5G technology. Major US telecom companies plan to rely heavily on tiny cell technology for 5G coverage across the nation, according to the IoT company Telit.
• To boost the initiative in terms of providing 5G coverage to consumers, Taiwan's largest telecom operator Chunghwa Telecom (CHT), teamed with Nokia for the products from its small cells portfolio. In Taiwan, CHT was the first operator to roll out 5G non-standalone (NSA) tiny cells. Instant 5G coverage is now possible in several places, including commercial and tourism locations. In order to improve interior coverage and capacity, Nokia will provide CHT with both its adaptable AirScale indoor Radio (ASiR) solution and its AirScale micro RRH for outdoor and urban hotspots. In addition to CHT's current base of more than 2,500 sets of 4G small cells, these two solutions will help operators meet the needs of a 5G network's indoor coverage and densification.
• Additionally, the Small Cell Forum (SCF), a telecoms organization that makes mobile infrastructure solutions available to everyone, issued a PHY API for 5G, which has sparked a competitive ecosystem for suppliers of 5G small cell hardware, software, and equipment. The telecom providers gain from the competitive ecosystem of the SCF by driving up the demand for the 5G network as the demand for data usage and high-speed data rise.
• For 5G technologies and networks, telecom operators are searching for a fundamentally new pricing model that might rely on interoperability and an open, competitive environment. The fronthaul between a distributed unit (DU) for radio functions and a centralized unit (CU) for protocol stacks and baseband functions is a crucial interface as networks get decentralized.

North America is Expected to Hold a Significant Market Share

• North America is one of the leading markets because of the widespread use of advanced technology like 5G. The telecom operators in the United States are highly using tiny cells to densify their 5G network, particularly in metropolitan areas, while reducing costs. For instance, operators like Sprint, AT&T, Verizon, and T-Mobile, have shown a positive approach toward commercializing 5G networks. To develop their 5G network infrastructure, these operators have made billion-dollar agreements with manufacturers of network equipment, including Samsung, Ericsson, Nokia, Huawei, and ZTE.
• Wireless network operators in the US are largely embracing tiny cells. For instance, the trade association CTIA forecasted that by 2026, there would be more than 800,000 tiny cells in the United States, up from about 86,000 in 2018. After the acquisition of Sprint Corporation by T-mobile US, together, they have about 70,000 small cells. Moreover, the company is ready to pour huge amounts of spectrum onto the biggest and densest wireless network in the United States. However, Verizon's small cell strategy is different from T-Mobile's in that it expects mmWave to eventually handle 50% of urban traffic and aims to continue deploying around 14,000 small cells over the next few years to expand the overall coverage.
• By 2024, 5G subscriptions are anticipated to make up 55% of all mobile subscriptions in the North American region, according to the Ericsson Mobility Report. Over the projected period, it is anticipated that the market under study will benefit from the increase in 5G subscriptions.
• In June 2021, United States-based Qualcomm Technologies Inc. launched its second-generation Qualcomm 5G RAN Platform for Small Cells (FSM200xx). It is mainly designed for expanding the mobile 5G mmWave coverage as well as power efficiency. Moreover, the comprehensive 3GPP Release 16 Modem-RF solution provides data that speeds up to 8 Gbps with bandwidth support of 1 GHz on mmWave and support for wider 200MHz carrier bandwidth. Additionally, it enables 200 MHz of Sub-6 GHz spectrum aggregation across FDD and TDD, providing data rates of up to 4 Gbps. With its support for technologies like eURLLC to provide low latency and link dependability (up to 99.99%) essential for factory automation and mission-critical control of equipment and machines, it seeks to power the factory of the future automation and hasten the transition to industry 4.0.
• Furthermore, Ericsson collaborated with Rogers Communications Inc., Canadian communication and media company, for the installation of 5G across its network in Canada. The 5G radio access network (RAN) and 5G core (5GC) for Rogers' 5G network are both exclusively supplied by Ericsson. Small cells, conventional and Massive MIMO radios, and MINI-LINK microwave technologies are also part of the technology. The Rogers 5G network is initially using a 2.5 GHz band and will mostly expand to operate on the 600 MHz 5G spectrum as the service expands to other markets.

Competitive Landscape

The market for small cell 5G networks is neither consolidated nor fragmented. Some of the key existing vendors in the market include Nokia Networks, Cisco Systems Inc., Telefonaktiebolaget LM Ericsson, and Qualcomm Technologies Inc., among others. These companies are implementing product development, strategic partnerships, and mergers & acquisitions to launch new products. However, many key vendors, such as Baicells Technologies Co. Ltd, have entered the market, which may change the competitive landscape throughout the forecast period.

• May 2022 - Picocom, the 5G Open RAN baseband semiconductor and software specialist, declared that through close partnership with Radisys, they are providing joint 5G Open RAN platforms to the clients and the customers based on Picocom's PC802 small cell System-on-Chip (SoC) and Radisys' Connect RAN 5G software. The PC802 flexible, low-power consumption device empowers the innovation of a new breed of 5G NR Open RAN solutions.
• August 2021 - Nokia declared it had been selected by Union Wireless to swap out its existing RAN equipment with Nokia's AirScale 4G/5G radio portfolio to update and modernize its network while supporting the Secure and Trusted Telecommunications Act. Union Wireless will roll out 4G service initially with a built-in path to 5G for its subscribers.

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