The popularity for data-oriented cellular services is growing with each passing day. As a result, there is a great rise in the launch of new devices and applications. Amidst increasing use of technology, network operators are struggling to keep up the demands for traffic capacity. To tackle, the same, operators have increased the use of small cells enhance the traffic capacity and maintain the network quality at the same time. The growth in the rate of adoption and rising demand are expected to be the strongest drivers for the small cell backhaul market. As a result, the industry is set to grow at a steady CAGR. The market is also presenting numerous business opportunities for both existing as well as new players from around the world.
Drivers and Opportunities
Huge rise in the data traffic and rising use of smart devices are creating strong demand in the global small cell backhaul market. Growth in deployment of small cell base stations and rising upgrades in communication technology are some of the major reasons for the rising demand in the industry during the next few years to come. The market is facing major challenges in terms of spectrum availability and installation and network planning as far as the operators are concerned. Nevertheless, the market is positive about the growth opportunities like self configuration and advanced management solutions. Rising fronthaul solutions are also expected to contribute to the growth of the global industry.
The small cell backhaul market is segmented on the basis of access technology generation into 2G, 3G, 4G/LTE technologies. On the basis of the types of backhaul technologies, the market is divided into fiber, copper, sub-6 GHz, millimeter wave, satellite, microwave and so on. Based on the transmission mediums, the market is segmented into wired and wireless technologies. The service segment is divided into professional, integrated and network services. Geographically, the industry is categorized into Middle East and Africa, North America, Latin America, Asia Pacific, and Europe. Analysis of all these segments provides information about the major trends, drivers, forecasts and growth prospects for the global industry.
According to the analysis of the aforementioned segments and current trends in the industry, researchers expect the market to grow at a healthy CAGR. From 2014 to 2019, the small cell backhaul market is expected to grow at a CAGR of over 28%. At the anticipated CAGR, the industry is projected to reach $2.08 billion in 2019, from $587.5 million in 2014. During the study period, the market is expected to be dominated by North America, while Asia Pacific is expected to witness rapid growth rate.