Small Cell 5G Network Market Size, Share, Industry, Forecast and outlook (2024-2031)

Small Cell 5G Network Market Overview

Global Small Cell 5G Network Market reached USD 0.51 billion in 2022 and is expected to reach USD 2.5 billion by 2030, growing with a CAGR of 22.4% during the forecast period 2023-2030. The rapidly growing consumer demand for fast mobile data connectivity has accelerated the introduction of the next-generation 5G Radio Access Network (RAN). Small cell 5G network deployment is increasing in industrial, enterprise and residential applications to offer greater coverage capacity at a low cost. 

During the forecast period 2023-2030, Asia-Pacific is expected to have the strongest growth, accounting for about 1/4th of the global small cell 5G network market. The region's growth can be attributed to major telecom service providers' active deployment of 5G new radio infrastructure. Some of the major telecom service providers in the region are China Mobile Limited, KT Corporation, Rakuten Mobile, Inc. and NTT Docomo Inc.

Small Cell 5G Network Market Scope and Summary

Small Cell 5G Network Market Dynamics and Trends

Rising Mobile Traffic and 5G Adoption

Global mobile data traffic and adoption of 5G are continuously increasing. As the demand for 5G services grows, telecom service providers are investing heavily in creating and expanding 5G infrastructure. As reported by Ericsson, total global mobile data traffic without Fixed Wireless Access (FWA) traffic touched 93 EB (Exabyte) per month by the end of 2022 and is expected to rise by a factor of 3.5 to 329 EB per month by the end of 2028. 

Total mobile network traffic was about 118 EB monthly at the end of 2022 and is expected to rise to 472 EB per month by the end of 2028 including FWA. By 2022, many countries will have begun to use 5G. 5G services are currently offered using existing network infrastructure. As the total amount of 5G users increases, existing infrastructure is expected to become insufficient, driving telecom providers to develop standalone 5G infrastructure.

Rising Adoption of IoT

High device density in specific areas, such as industrial settings, smart buildings or transportation hubs, is often needed for IoT deployments. Small cells can provide the network capacity required to meet the increasing traffic demand from a large number of connected devices in close proximity. Service providers can ensure dependable connectivity and enough data for IoT applications in congested environments by densifying the network using small cells.

Through the use of internet of things (IoT)-based connected devices, 5G technology aids in enhancing passenger safety, predictive maintenance and other areas. The devices are heavily reliant on greater communication requirements, which essentially promotes the growth of the small cell 5G network. According to the European Union Agency for Cybersecurity report 2020, approximately 43% of airports have implemented IoT initiatives to monitor onsite sites, while approximately 59% of airports have implemented cybersecurity measures within smart airports.

High Costs and ROI

Small cell 5G network deployment can be capital-intensive, necessitating investments in equipment, infrastructure and network planning. Small cell device acquisition and installation, backhaul connectivity and power supply can all be expensive. Telecommunications companies must carefully assess the return on investment (ROI) and guarantee that the potential revenue generated by small cell deployment exceeds the costs.

Regulatory frameworks and legal issues can make small cell 5G network deployments difficult. Obtaining the requisite permits and spectrum licenses, as well as following to local regulations and norms, can be complicated and time-consuming. Compliance with RF emissions standards, zoning constraints and infrastructure sharing agreements can all have an impact on deployment schedules and costs.

Small Cell 5G Network Market Segment Analysis

The global small cell 5G network market is segmented based on component, frequency band, cell type, deployment, radio technology, end-user and region.

Need to Deliver Better Mobile Broadband Services

During the forecast period, telecom operators account for more than 1/3rd of the global small cell 5G network market. Telecom operators are exploring Internet of Things (IoT) and low latency communication options on mmWave or higher frequency bands, which would significantly speed up the deployment of small cells 5G network. Telit, an IoT company, estimates that major U.S. telecom operators would rely largely on small cell technologies to provide statewide 5G service.

Chunghwa Telecom (CHT), Taiwan's leading telecom operator, has partnered with Nokia for devices from its small cells portfolio to support its goal of offering 5G coverage to consumers. Chunghwa Telecom was Taiwan's first operator to develop 5G non-standalone small cells, providing instant 5G coverage in a variety of places such as commercial and tourist destinations.

Global Small Cell 5G Network Market Geographical Penetration

Presence of Major Market Players in North America

North America small cell 5G network market has witnessed significant growth covering more than 1/3rd of the market share in 2022. In U.S., telecom companies are using small cells to densify their 5G network in urban areas. Sprint, AT&T, Verizon and T-Mobile are taking an innovative approach to commercializing 5G networks, signing agreements with network equipment companies like Samsung, Ericsson, Nokia, Huawei and ZTE to build their 5G network infrastructure. 

T-Mobile U.S. acquired Sprint Corporation and now has approximately 70,000 small cells. The company plans on investing huge amounts of spectrum to building the largest and densest wireless network in U.S. T-Mobile's small cell approach differs from Verizon's. It expects that mmWave will eventually handle 50% of urban traffic and plans to continue deploying roughly 14,000 small cells in the next several years to expand total coverage.

Small Cell 5G Network Market Companies

The major global players include Ericsson, Huawei Technologies Co., Ltd., Nokia Corporation, Samsung Electronics Co., Ltd., Airspan Networks, Comba Telecom Systems Holdings Ltd., ZTE Corporation, Fujitsu Limited, CommScope Inc. and Baicells Technologies.

COVID-19 Impact on Small Cell 5G Network Market

The pandemic created supply chain interruptions and migration restrictions, causing delays in the deployment of 5G networks, particularly small cell infrastructure. As remote work, online education and telemedicine grew in popularity, the crisis highlighted the significance of reliable and high-speed access.

As the government and commercial sectors in developing countries are working together to accelerate the development of 5G infrastructure in the aftermath of the pandemic, the COVID-19 epidemic has had little influence on the expansion of the global small cell 5G network market. In Thailand, for example, mobile network operators (MNO) are collaborating to bring 5G networks to hospitals.

As small cell 5G devices continue to be seen as a niche industry, consumers may be unable to spend money on them. According to a customer poll conducted by Groupe Speciale Mobile Association (GSMA) Intelligence, most respondents expressed little interest in upgrading to 5G services. According to the report, approximately 80% of users in UK do not intend to update to 5G.

AI Impact

Artificial intelligence algorithms can be used to improve the efficiency and effectiveness of small cell networks. Machine learning algorithms can evaluate network data, detect patterns and make real-time modifications to enhance network capacity, coverage and service quality. AI can improve network performance and user experience by enabling dynamic resource allocation, interference reduction and intelligent network management.

AI has the potential to provide predictive maintenance of small cell infrastructure. AI algorithms can identify possible equipment failures or performance degradation by analyzing network data, enabling proactive maintenance and lowering network downtime. Ericsson, a leading provider of Information and Communication Technology (ICT) services, predicts that 5G will connect 40% of the world by 2024.

Russia- Ukraine War Impact 

The conflict caused telecom companies to reevaluate their business strategy and investment objectives. Market participants' emphasis, investments and resource allocations may change depending on the severity of the war and its geopolitical consequences. It could have an impact on the pace and scale of small cell 5G network deployments in the region, as well as the global market.

Russia's 5G regulatory issues offer a hurdle for nations like Lithuania who are attempting to develop 5G networks. North Atlantic Treaty Organization (NATO) states feel bound to follow international accords governing spectrum utilization in peacetime and NATO troops are unable to take advantage of unbuilt 5G infrastructure due to regulatory disagreements with Russia.

By Component

• Solutions
• Services

By Frequency Band

• Low
• Mid
• Millimeter Wave

By Cell Type

• Picocells
• Femtocells
• Microcells

By End-User

• Telecom Operators
  • Private Owned
  • Mobile Network Operator Owned
  • Joint Venture
  • Operator Owned
• Enterprises

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In October 2022, HFCL Limited, an technology company of India, announced a partnership with Qualcomm Technologies, Inc., an American multinational corporation. It will focus on designing and developing HFCL's 5G outdoor small-cell solutions. Such investments in small cell 5G outdoor products helps for faster network expansion and a better 5G user experience.
• In September 2022, Mavenir, an American telecommunications company, announced the launch of high-capacity 5G small cell in-building standalone covering for public spaces and enterprises. The flexibility of 5G small cells supports both centralized and dispersed end-to-end open radio access network (ORAN) infrastructure. 
• In May 2022, Picocom, a 5G Open RAN baseband semiconductor expert, formed a partnership with Radisys to provide clients and customers collaborative 5G Open RAN systems based on Radisys' Connect RAN 5G software and Picocom's PC802 small cell System-on-Chip (SoC). The PC802 is a versatile, low-power device that enables the development of a new generation of 5G NR Open RAN systems.

Why Purchase the Report?

• To visualize the global small cell 5G network market segmentation based on component, frequency band, cell type, deployment, radio technology, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of small cell 5G network market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global small cell 5G network market report would provide approximately 85 tables, 83 figures and 207 Pages.

Target Audience 2023

•  Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies