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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