5G Small Cell Market Size, Share, Growth Analysis, By Component(Solution, Services), By Application(Residential, SOHO, Enterprises, Others), By Radio Technology(Standalone, Non- Standalone), By Communication Infrastructure(Femtocell, Metrocell, Picocell, Microcell), By Network Architecture(Distributed and virtualized), By Deployment Mode(Indoor and outdoor), By Frequency Type(Sub-6 GHz, mmWave, and Sub-6GHz + mmWave), By Region - Industry Forecast 2024-2031

5G Small Cell Market Driver

• Government 5G Network Deployment is Increasing, and Internet of Things (IoT) Devices are Being Adopted to Support Market Expansion

In wealthy nations like the United States, Germany, France, the United Kingdom, and others, the 5G small cell market is expanding quickly on a global scale. Forbes predicted that by the year 2020, there will be more than 1,945 small cell deployments, and by the year 2027. It is expected that there would be 1.56 million private network deployments by the same year. Additionally, the Cellular Telecommunications Industry Association (CTIA) estimates that in 2020, the United States will have erected more than 417,215 small cell sites. Global 5G network implementation is on the rise, which has boosted market expansion.

The number of 5G connections is reached approximately 10 million in 2019 and is projected to increase to roughly 1.8 billion by 2025, according to the Global System for Mobile Communications (GSMA). Additionally, 81 Mobile Network Operators (MNOs) in 42 countries began offering 5G commercial services in June 2020, according to the Global Mobile Suppliers Association (GSA). Additionally, 125 countries and 385 MNOs plan to invest in the rollout of 5G in the coming years.

Additionally, the increasing use of smartphones, wireless devices, internet of things (IoT) devices, and other devices has increased the need for reliable internet connections, which is expected to fuel the growth of the 5G small cell market. Additionally, increasing government and telecom operator investments in the infrastructure deployments for the 5G network are anticipated to support the market growth for small cells for the 5G network.

• Soaring Mobile Data Traffic

Due to the Internet of Things (IoT), augmented reality (AR), virtual reality (VR), smartphones, voice applications, and audio and video content, data traffic has been continuously increasing, creating a demand for more network bandwidth. 5G Small cell market is anticipated to offer bandwidth of roughly 1 Gigabit per second (Gbps), compared to 4G's maximum of 200 Megabits per second (Mbps). As per Ericsson, the data traffic per smartphone usage per month would reach 10 times from 2017 to 2023. The demand for small cell 5G networks rises as mobile data traffic increases. An important factor in increasing mobile coverage and capacity is a small cell network that is 5G ready.

5G Small Cell Market Restraint

• Poorly Connected Backhaul

Up until the launch of the 5G network, mobile network operators faced significant backhaul challenges in the 5G small cell market, including the need for connectivity with ultralow latency of less than 1 millisecond (ms) (roundtrip). When there is heavy network congestion, inadequate coverage from macrocells, and no backhaul or power, small cells are deployed. One of the potential solutions for this problem is radio backhaul, although unit size reduction and throughput testing are necessary for the deployment of small cells, which may increase the cost of deployment. The lack of an alternative backhaul solution poses a serious obstacle to the effective deployment and operation of small cells.

Service providers in the 5G small cell market must therefore have a robust service delivery method that is dependable and adaptable to terminate backhaul services in a range of non-traditional sites, such as billboards, telephone poles, and building sides, in order to overcome such problems. Denser small cell deployment is necessary under the 5G network to address the backhaul connectivity issue, and over time if the problem of inadequate backhaul is not handled, vendors may need to investigate alternate backhaul options such as Wi-Fi and next-generation satellites to meet service expectations.

5G small cell market expansion is hampered by high infrastructure deployment costs for small cell networks. The initial deployment stage of 5G infrastructure is an expensive undertaking for network operators. A tiny cell network is set up with a significant investment from several top players. A significant financial constraint in these networks is the cost of resilient strength fibre and power distribution. According to AT&T, Inc. estimate, the average deployment costs of a small cell network ranges from USD 6.8 Million to USD 60 Million, depending upon the rural and urban areas. The cost of installing the 5G network in rural areas is high compared to urban areas due to lack of availability of the resources.