The femtocells market is growing due to the high operational performance all over the world. It is also expanding due to the decline in the cost of devices and other technological advancements in the market. Such factors will drive the global femtocell market to reach a market value of $4.7 billion (£2.8 billion) in 2019. This industry will grow in market size from a figure of $420 million (£250 million), as recorded in 2012.
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Femtocells – Brief Overview
Femtocells offer a wide range of advantages to end-users and network operators. Their use is for a variety of networks such as 2G, 3G and 4G (LTE). Most of the key players’ focus is on the development of LTE femtocells for better services in the broadband and mobile phone sector. The growing adoption of phone usage and broadband services for downloading, playing online games, software/music downloading, and video conferencing are stimulating the growth in the femto market.
Femtocells are low-powered devices typically used to improve mobile network coverage. They have helped to improve the transmission between voice and data services, hence gaining larger attention from mobile subscribers globally. Though femtos are often used in consumer, commercial, and public access areas, their most prominent deployments have been seen in residential areas. Exemplified as plug and play devices, femtos can be integrated with different networks such as Wi-Fi or macro cell to connect to the cellular operator.
Femtocells – Key Factors Driving the Market
Besides, the technological advancements and reducing cost of femtocell devices, a strong adoption for these devices globally is another major factor driving this enterprising segment. Also, an adoption of LTE femtocells is anticipated to drive this market throughout the forecast period.
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An escalating integration of femtos with different technologies such as RFID and Wi-Fi services is providing the need for potential growth for this market. Other key drivers involved are the demand for 3G and 4G networks with a scope of services, higher data rates offered through each of these networks, and the potential of femtocells to overcome problems associated with mobile network services.
Nevertheless, some of the major inhibiting factors affecting the market for femtocells are lack of awareness, continuous focus of operators to sate large network gaps in urban spaces, and weak network due to signal attenuation in commercial and residential areas.
Higher cost of femto devices has always been a price sensitive issue in the global market. The market is witnessing a number of key players entering for new business which is causing the price of femto devices to reduce, owing to such competition.
For a better understanding of the femtocells market, studies conducted by leading market research firms demonstrates this market in terms of various segments such as by technology including 2G, 3G, and 4G, by form factor, market by application, and lastly, by different geographies. The market by regional analysis covered in this article is discussed below.
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Femtocells Market: By Regional Analysis
The U.S. market for femtocells is expected to be the fastest growing region among all other markets in the forecast period 2013 – 2019. According to an in-depth analysis, geographically, North America accounted to be the largest market in 2012, and with rising number of femtocell service deployments by various mobile operators, this market is augmented to rise further in the coming years. Due to rising demand for this technology and high adoption from both enterprise and residential sectors, North America shows a positive growth in this market.
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However, Europe is the next region that will follow North America in terms of development and commitments. Due to promotions by mobile network service providers for femtocell applications, other developed countries such as Australia, Europe, and U.K. also shows higher adoption rate of femtocell technology in the current forecast.
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