5G Small Cell Market - Forecasts from 2023 to 2028

The global 5G small cell market is projected to grow at a CAGR of 27.46%, reaching US$11.388 billion by 2028, from US$2.655 billion in 2022.

GROWTH DRIVERS

Lower Cost

Small cells assist in enhancing the network density of 5G technology. They are used to deliver high-performance capabilities. Small cells work toward boosting the network signal to extend coverage to indoor spaces such as enterprises and residential. Low radio frequency (RF) power production, size, and range are characteristics of these cells. In contrast, small cells are also less expensive than other cells, such as macro cells. Accordingly, in May 2022, the Indian Department of Telecom (DoT) announced that to reduce the cost of deploying 5G technology, it may use the infrastructure owned by the country’s power sector to deploy the small cell. The government formed partnerships with Power Discoms, cable companies, and local authorities to install small cells and provide optical fiber backhaul to these cells.

Indoor Deployments

There are two deployment options for small cells- indoor & outdoor.

Indoor Deployment:

• Residential short-range small cells for indoor use
• Private Networks: Basements and In-Building Solutions

Outdoor Deployment

• Light poles, streetlights, transit stations, billboards, and water towers are examples of street furniture.
• Metro Pillars & Flyovers
• Smart Poles

Furthermore, according to Nokia, indoor mobile users account for around 80% of mobile broadband traffic.

The higher frequencies used by 5G are more prone to signal propagation limitations than earlier versions of mobile technology, so assuring adequate interior coverage can be difficult. It is crucial to consider indoor small cells as a deployment option that will help overcome this.

Moreover, the launch of 5G technology enables increased indoor deployment. For instance, the concept of a smart stadium has utilized advanced technologies to create new viewing experiences for sports.

• Furthermore, in December 2020, Rakuten conducted a 5G trial to create a “smart stadium” with the help of drones and live streaming of 360-degree VR video. It was Japan’s first trial of 5G that offered logistics solutions through the remote operation of an unmanned delivery robot. The trial was conducted at Rakuten Seimei Park Miyagi in Sendai City, Miyagi Prefecture.

EMERGING OPPORTUNITIES IN THE GLOBAL 5G SMALL CELL MARKET

Femtocell

By type, small cells are divided into femtocells & picocells, and microcells. Amongst these, femtocell & picocell will hold a notable share in volume terms during the projected period, owing to increased demand for residential and enterprise base stations. Additionally, Nokia has smart node femtocells in its wide range of 5G small cells portfolio. The product delivers a great customer experience in small indoor environments. Its self-optimizing network with plug-and-play deployment ensures instant coverage boost utilizing the existing LAN network.

Disaggregated

By RAN architecture, small cells are divided into integrated & dual-split and single-split.

• Integrated & dual-split RAN architecture is expected to witness high CAGR throughout the forecast period. Various enterprise deployment scenarios can benefit from small-cell solutions built on this architecture.

Outdoor Small Cells

Urban and outdoor deployment primarily support MNO-deployed public networks in rural, suburban, and urban areas. A small number of outdoor cells are reserved for a particular business type, such as an oil rig or a power plant in distant locations. The expansion of outdoor small base stations is an emerging opportunity for market growth. The total cost of Ownership is one of the main considerations for deploying outdoor small cells in metropolitan environments.

Owing to increased 5G deployment across the countries, governments have undertaken various initiatives for boosting the establishment of the outdoor base station. For instance,

• in June 2019, the Japanese government allowed the major 5G mobile carriers to install 5G base stations on 200,000 traffic lights nationwide by the end of March 2024. The initiative was announced to reduce the cost and time needed to deploy the next generation of ultra-fast mobile networks fully.
• In November 2022, the Telecom Regulatory Authority of India (TRAI) released its recommendation for using street furniture to deploy the small cell. Since lower bands, which macro radio stations use, have a restricted carrying capability, outdoor small cells can be used for traffic dumping. Utilizing existing city furniture, such as posts and other structures, to install 5G small cells can eliminate the need to build thousands of new towers, allowing for the quick and affordable implementation of small cells. The backhaul connectivity required by the small cells can be quickly supplied by overhead fiber distribution using street furniture.

GEOGRAPHICAL PRESENCE

The global 5G small cell market consists of some major countries undertaking various measures to expand the deployment of 5G technology across their respective nations. Some major countries include the USA, Japan, South Korea, China, and Germany. The countries have undertaken various measures for the faster deployment of 5G technology through small cells, thereby promoting the growth of the small cell market. For instance,

• In February 2022, Telefónica, a Spanish telco operator, announced that its brand-new Open RAN 5G Standalone small cell was successfully verified. According to the European carrier, the demonstration was executed by Node-H and Askey in Telefonica's Technology & Automation Lab. Small cells will be used to offer 5G services throughout the nation. The initiative has been taken to deliver 5G services with small cells nationwide.
• In April 2021, to expand 5G coverage, Nokia and LG Uplus announced a partnership. The agreement includes deploying new AirScale small cells - Nokia's small cell solution - across South Korea to allow seamless 5G indoor and outdoor connectivity.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson, Qualcomm, and Airspan. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance, in May 2020, Sercomm and Airtel announced their strategic partnership. The alliance announced the launch of TDD small cells. The product enhances indoor network connectivity. It improves operation reliability and creates a heterogeneous network.

MARKET SEGMENTATION

The global 5G small cell market has been analyzed through the following segments:

By Deployment

• Indoor
• Outdoor

By Architecture

• Integrated & Dual-Split
• Single-Split

By Configuration

• Standalone
• Non-Standalone

By Type

• Femtocell & Picocell
• Microcell

By Geography

• Americas
• United States
• Others
• Europe, Middle East, and Africa
• Germany
• UK
• Others
• Asia Pacific
• China
• Japan
• South Korea
• Others