The Femtocells Market was valued at USD 1.82 billion in 2019 and is expected to reach USD 14.30 billion by 2025, at a CAGR of 41% over the forecast period 2022 – 2031. Femtocells are cellular base stations used to provide wireless connectivity for mobile devices such as smartphones. It is usually used in areas where the strength of the mobile signal is weak. Femtocell access points facilitate feasible access to voice and data services. They offer benefits such as scalable deploying, backward compatibility with the macrocellular technology, reduced transmission power, portability of devices, low-cost deployment, and improved coverage that results in prolonging mobile battery life, among others.
– There is growth in femtocells due to technological advancements in the femtocell technology and decreasing cost of femtocell devices. Additionally, there is a high adoption of femtocells in the residential segment coupled with increasing demand from the enterprise segment, which is also driving the market.
– The primary driver for femtocells market is less power consumption. As the transmission power of femtocells is comparatively less than macrocell networks, the former consumes less power than the latter and saves energy. A femtocell consumes less than 7 W and can support several connections in each range.
– Increase in applications of Smartphone for availing value-added services has fueled the growth of femtocell market. Reductions in the cost of electronic equipment such as mobile phones, laptops, and other internet devices have increased the demand for femtocell.
– The primary factor hindering the growth of femtocells market is the availability of substitutes in the forms of Wi-Fi and picocells. Flexibility in networking technology trends is also reducing the revenue for femtocells market.
Scope of the Report
Femtocell is a small, low power cellular base-station designed for use in the home or small business. They are low power wireless access points that connect mobile devices to operators’ network using cable broadband or residential DSL connection. With the help of these devices, the network operator can provide high-quality voice and data transmission to its subscribers.
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Key Market Trends
Commercial Segment Expected to Witness Significant Growth
– The primary driver for femtocell in the commercial segment is the increased mobile traffic and the lack of network in multitenant buildings, hotels, or office towers. A benefit of this solution is that it can be cheaper and more flexible.
– The advent of IoT has had a transformational impact on all industries, by reshaping business models, value chains, and entire industry configurations. Femtocells offer indoor coverage and have been able to satisfy the needs of smart devices and provide affordable connectivity throughout the enterprise.
– From manufacturing industries adopting Industry 4.0 to business organizations promoting the BYOD policy, various factors have been augmenting the growth of the market studied. A few significant drivers of the market include smart city initiatives, which have also been instrumental in encouraging vendors to develop products that are specific to smart city applications.
– For instance, NXP Semiconductor has introduced a femtocell solution that targets high-bandwidth, low-power baseband applications. The solution is optimized for LTE and WCDMA (HSPA+), to offer optimized cost and power for smart city development.
Europe Expected to Witness Significant Growth
– The United Kingdom is a front runner in technology and services and recorded a GDP growth of 1.6%. The economy is expected to be modest, owing to the subdued consumer expenditure and the political and economic uncertainty of the outcomes of Brexit negotiations.
– The UK segment is buoyed by the presence of robust technologies and infrastructure, owing to the presence of market leaders like Verizon, and is characterized by intense competition in the mobile and broadband sectors. This is one of the reasons why the mobile penetration in the country is higher than the European average, supported by relatively low consumer prices.
– With the increasing smartphone penetration (which is around 80%), advancements in the capabilities of these mobile devices, and the penetration of the 4G technology across the region have led to robust data usage. By 2020, nearly 30% of UK households are expected to be smart homes. This trend indicates that there exists a significant potential for the adoption of femtocells.
– The growth of the UK segment is anticipated to be driven by the robust demand for wireless networks in the residential and commercial sectors, robust data usage on mobile devices, and increasing adoption of smart homes.
The femtocells market is fragmented. The players in the market are bringing many innovations, and there are various mergers and acquisitions taking place. The market players operating in this market can achieve a competitive advantage by providing cost-efficient, consistent and scalable equipment.
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