TrendForce: Small Cell Deployment to reach 2.838M units in 2018; 4.329M units in 2019 for CAG of 52.5%
Global mobile operators will be using small cells to expand the indoor coverage and improve network capacity, improving the quality of telecommunication. Small cells can divert 80 percent of data traffic in crowded areas. Increase in hotspot capacity will make up for areas not covered by macro cells (both indoor and outdoor) to improve network performance and service quality.
Kelly Hsieh, research director of TrendForce, said small cells will achieve higher level of integration, allowing for multi-mode, multi-band deployment, and integrate unlicensed spectrum.
The deployments of small cells – fuelled by 5G — will reach 2.838 million units in 2018 and 4.329 million units in 2019, an annual growth of 52.5 percent. Hsieh said that demand for 5G applications will gradually emerge as consensus on 5G standards and 5G application scenarios are being formed. Particularly, small cells are key to 5G as they can support increasing demand of data performance. It is estimated that the global deployments and installed base of small cells will reach 2.838 million units in 2018 and 4.329 million units in 2019, an annual growth of 52.5%.
The TrendForce report predicts that small cells will upgrade network performance and improve efficiency through indoor digital deployments. Small cells can carry large sum of data transmission brought by Internet of Things (IoT) and integrated wireless backhaul, reducing investment costs significantly.
China Mobile, Verizon, AT&T and SK Telecom are currently making investment for deploying small cell technology to boost customer experience. Therefore, with the development of 5G technology, small cells will become key equipment adopted by global mobile operators. Currently, mobile operators in China, the United States and South Korea are the most active, including China Mobile, Verizon, AT&T, and SK Telecom.
Backgrounder on Small Cells (see IEEE reference below):
Small cells are portable miniature base stations that require minimal power to operate and can be placed every 250 meters or so throughout cities. To prevent signals from being dropped, carriers could blanket a city with thousands of these stations. Together, they would form a dense network that acts like a relay team, handing off signals like a baton and routing data to users at any location.
While traditional cell networks have also come to rely on an increasing number of base stations, achieving 5G performance will require an even greater infrastructure. Luckily, antennas on small cells can be much smaller than traditional antennas if they are transmitting tiny millimeter waves. This size difference makes it even easier to stick cells unobtrusively on light poles and atop buildings.
What’s more, this radically different network structure should provide more targeted and efficient use of spectrum. Having more stations means the frequencies that one station uses to connect with devices in its small broadcast area can be reused by another station in a different area to serve another customer. There is a problem, though: The sheer number of small cells required to build a 5G network may make it impractical to set up in rural areas.
2 thoughts on “TrendForce: Small Cell Deployment to reach 2.838M units in 2018; 4.329M units in 2019 for CAG of 52.5%”
Wise Guy Reports:
The total value of the small cell market is $12.5 billion in 2017, up from $10.35 billion in 2016. Markets grow to $58.7 billion in 2024. Growth is a result of the implementation of the tremendous amount of digital content from video on smart phones, from the digital economy, IoT, robots, drones, self-driving cars, and artificial intelligence. The digital economy rides on the back of small cells 5G signal transmission which is a 10x improvement in capacity over existing broadband. This is the new world aspect, everything is monitored and activated digitally.
The digital economy, self-driving cars, drones, traffic lights, and smart things all need more wireless coverage. According to Susan Eustis, leader of the team that prepared the research, “Small cell suppliers have a focus on broadband improvement. Power and performance are being improved. Small cells improve the transmission coverage and density.”
This 5G coverage is needed as IoT, the Internet of things and smart phone video increase transmission needs. “Everything will be connected,” said SoftBank Chief Executive Masayoshi Son, announcing a ARM processor deal in London. “Cows will be connected, chickens will be connected, the sheep will be connected.”
Nokia / Alcatel-Lucent
Mobile Experts predicts small cell market to hit $5.2B by 2024:
The LTE small cell market saw a strong year in 2018, according to a new report published by Mobile Experts. LTE small cell unit shipments grew 20% year over year in 2018, as did revenue, which reached $2.9 billion.
Mobile Experts expects the small cell market to continue growing at a 10% CAGR over the next five years to reach $5.2 billion by 2024. Kyung Mun, principal analyst at Mobile Experts, pointed to private LTE and 5G as growth drivers in the small cell market.
Mun predicts 5G massive MIMO will “have a profound impact on C-band small cell strategies.” He also stated that private LTE and edge computing use cases “will drive significant growth in the small cell market, with new customer groups aligning to drive growth.”
The report tracks both the carrier indoor segment and outdoor segments. It notes that the indoor segment remains a key driver for the overall small cell market. “As the market transitions to 5G, we will see some challenges for small cells—especially in the outdoor segment,” Mun said.
Mobile Experts predicts “substantial adoption” of CBRS, LAA and Wi-Fi connectivity in small cells as a low-cost way for carriers to add capacity to their networks.
Small cell deployments are expected to continue to grow over the next few years, as carriers continue to densify their networks. A wave of legislation at the state and local levels aimed at streamlining the various permitting and siting processes for small cells could be spurring some of the growth.
This week, Verizon announced a multimillion-dollar deal to accelerate the deployment of 4G LTE small-cell facilities in San Diego after the city agreed to revamp its permitting process, while lawmakers in West Virginia recently signed into law similar new rules for optimizing small cell permitting throughout the state.
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