Small cell market to grow at 38% CAGR through 2021

Small cells to reduce CapexThe global size of the outdoor small cells market is expected to grow at 38 percent CAGR through 2021, says ABI Research.

As networks grow beyond coverage to addressing capacity through densification, mobile network operators (MNOs) find that deploying small cells is one of the most effective ways to boost network capacity in high traffic urban and suburban areas.

Cisco Systems, CommScope, Ericsson, Huawei Technologies, ip.access, NEC, Nokia and SpiderCloud Wireless are some of the technology companies in the global small cell market for telecom network operators.

The Asia-Pacific region — given its large size with 4G deployments in South Korea and Japan, as well as the large LTE and growing networks in China and India — will represent almost 50 percent of the worldwide small cell equipment market by 2021.

While China Mobile and China Unicom are making investment in LTE in China, Indian telecom operators Reliance Jio Infocomm, Bharti Airtel, Idea Cellular and Vodafone India are the top Indian telecom network operators with 4G presence.

Who’s investing in small cells

China Mobile, Verizon, and Vodafone, among others, are now investing in network densification.

Nick Marshall, research director at ABI Research, said: “The results of this can be seen in the ramp of small cells this year.”

Last year, the challenges of backhaul, power, permitting and siting, which previously stalled small cell rollout, were overcome with Small Cells as a Service (SCaaS) solutions from technology vendors and infrastructure owners, including American Tower, Crown Castle, Ericsson and Nokia.

Several of these companies report in 2016 earnings calls that Small Cells-related revenue is growing strongly quarter-on-quarter.

This year, LTE small cells are the fastest growing small cell type in the market driven by venue and dense urban deployments. The number of LTE small cells shipped to double in 2016 and by a similar factor each year after as MNOs put in place the framework for 5G deployments.

In 2021, the value of LTE small cells equipment will represent almost 70 percent of the small cell equipment market, said ABI Research.

editor@telecomlead.com

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