ABI Research and Mobile Experts: Fixed Wireless Access CAGR >=70%
ABI Research and Mobile Experts forecast that 5G FWA connections will increase at a compound annual growth rate of 71% and “over 70%,” respectively.
Fixed Wireless Access (FWA) will be among the most valuable use cases for LTE and 5G network operators, according to two new reports that predict compound annual growth rates in excess of 70%.
- ABI Research expects global 5G fixed wireless access to exceed 58 million residential subscribers by 2026.
- Mobile Experts predicts 5G fixed wireless access to serve 66.5 million customers by 2026.
FWA is a decades-old technology (that’s how WiMAX was deployed), but its prominence and rate of growth grew substantially during the last year amid the ongoing COVID-19 pandemic, which has forced billions of people worldwide to stay home (“shelter in place”).
Image Credit: Upward Broadband
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ABI Research:
Remote working, online learning, e-commerce, and virtual healthcare drove high-speed broadband demand throughout 2020. The significant increase in the use of internet-based home entertainment such as video streaming and online gaming also pushed existing broadband users to upgrade their broadband service to a higher-tier package, while households without broadband access signed up for new subscriptions.
“Increasing adoption of internet-connected devices, smart TVs, and smart home devices, as well as consumers’ media consumption through internet applications, will continue to drive high-speed broadband adoption in the years to come. In addition, many businesses are allowing remote working for some of their employees after the pandemic, which will boost the need for home broadband services even further,” explains Khin Sandi Lynn, Industry Analyst at ABI Research.
FWA will be the fastest-growing residential broadband segment, forecast to increase at a CAGR of 71%, exceeding 58 million subscribers in 2026.
As residential broadband penetration saturates mature markets, competition among broadband operators is likely to create challenges to maintain market shares. “In addition to network upgrades, broadband operators need to invest in cutting-edge software and hardware to optimize network performance and support better user experiences. Providing advanced home networking devices, internet security, and home network self-diagnosis tools can help service providers reduce churn and improve average revenue per user,” Lynn concluded.
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Mobile Experts:
Mobile Experts forecasts the number of global fixed wireless access connections will more than double to 190 million by 2026. FWA services grew almost 20% yearly to over 80 million in 2020—Mobile Experts sees that number rocketing to almost 200 million by 2026. Around 8-11% of FWA connections over the next five years will be served via proprietary technology primarily deployed by small operators.
FWA equipment sales, including IEEE 802.11 based proprietary, LTE, and 5G CPE revenue, are projected to grow from $4.0 billion this year to over $5.5 billion in 2026. Meanwhile, the proprietary equipment market, including both access point and CPE sales, is expected to stay elevated around $880–$940 million per annum over the next five years.
“Large mobile operators will leverage LTE and 5G for FWA services, and we expect the 5G mm-wave will become a key aspect of their long-term FWA plans—especially in ‘fiber-rich’ markets in the APAC region. That said, large and small operators will benefit from government funding to help build out hybrid fiber plus FWA networks for the next 5-10 years,” said Principal Analyst Kyung Mun.
This report includes 41 charts and diagrams, including a five-year forecast illustrating the growth of the market for infrastructure and customer premise equipment and fixed wireless access connections by technology. Key details such as technical breakdowns, equipment revenue, and market shares are included.
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References:
https://www.mobileexperts.org/reports/p/virtual-mobile-networks-pt3na-zrw9g
https://www.sdxcentral.com/articles/news/5g-fixed-wireless-rides-pandemic-related-shift/2021/08/