Femtocells Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Femtocells Market is segmented by Application (Commercial, Residential), and Geography.

Market Snapshot

Femtocells Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 41 %

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Market Overview

The Femtocells Market was valued at USD 1.84 billion in 2020 and is expected to reach USD 2.78 billion by 2026, at a CAGR of 8.64% over the forecast period 2021 - 2026. Femtocells are cellular base stations used to provide wireless connectivity for mobile devices such as smartphones. It is usually used in areas where the strength of the mobile signal is weak. Femtocell access points facilitate feasible access to voice and data services. They offer benefits such as scalable deploying, backward compatibility with the macrocellular technology, reduced transmission power, portability of devices, low-cost deployment, and improved coverage that results in prolonging mobile battery life, among others.

  • There is growth in femtocells due to technological advancements in the femtocell technology and decreasing cost of femtocell devices. Additionally, there is a high adoption of femtocells in the residential segment coupled with increasing demand from the enterprise segment, which is also driving the market.
  • The primary driver for femtocells market is less power consumption. As the transmission power of femtocells is comparatively less than macrocell networks, the former consumes less power than the latter and saves energy. A femtocell consumes less than 7 W and can support several connections in each range.
  • Increase in applications of Smartphone for availing value-added services has fueled the growth of femtocell market. Reductions in the cost of electronic equipment such as mobile phones, laptops, and other internet devices have increased the demand for femtocell.
  • The primary factor hindering the growth of femtocells market is the availability of substitutes in the forms of Wi-Fi and picocells. Flexibility in networking technology trends is also reducing the revenue for femtocells market.

Scope of the Report

Femtocell is a small, low power cellular base-station designed for use in the home or small business. They are low power wireless access points that connect mobile devices to operators’ network using cable broadband or residential DSL connection. With the help of these devices, the network operator can provide high-quality voice and data transmission to its subscribers. 

By Application
Commercial
Residential
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Commercial Segment Expected to Witness Significant Growth

  • The primary driver for femtocell in the commercial segment is the increased mobile traffic and the lack of network in multitenant buildings, hotels, or office towers. A benefit of this solution is that it can be cheaper and more flexible.
  • The advent of IoT has had a transformational impact on all industries, by reshaping business models, value chains, and entire industry configurations. Femtocells offer indoor coverage and have been able to satisfy the needs of smart devices and provide affordable connectivity throughout the enterprise.
  • From manufacturing industries adopting Industry 4.0 to business organizations promoting the BYOD policy, various factors have been augmenting the growth of the market studied. A few significant drivers of the market include smart city initiatives, which have also been instrumental in encouraging vendors to develop products that are specific to smart city applications.
  • For instance, NXP Semiconductor has introduced a femtocell solution that targets high-bandwidth, low-power baseband applications. The solution is optimized for LTE and WCDMA (HSPA+), to offer optimized cost and power for smart city development.
Femtocells Market Latest Trends

Europe Expected to Witness Significant Growth

  • The United Kingdom is a front runner in technology and services and recorded a GDP growth of 1.6%. The economy is expected to be modest, owing to the subdued consumer expenditure and the political and economic uncertainty of the outcomes of Brexit negotiations.
  • The UK segment is buoyed by the presence of robust technologies and infrastructure, owing to the presence of market leaders like Verizon, and is characterized by intense competition in the mobile and broadband sectors. This is one of the reasons why the mobile penetration in the country is higher than the European average, supported by relatively low consumer prices. 
  • With the increasing smartphone penetration (which is around 80%), advancements in the capabilities of these mobile devices, and the penetration of the 4G technology across the region have led to robust data usage. By 2020, nearly 30% of UK households are expected to be smart homes. This trend indicates that there exists a significant potential for the adoption of femtocells.
  • The growth of the UK segment is anticipated to be driven by the robust demand for wireless networks in the residential and commercial sectors, robust data usage on mobile devices, and increasing adoption of smart homes.
Femtocells Market Share

Competitive Landscape

The femtocells market is fragmented. The players in the market are bringing many innovations, and there are various mergers and acquisitions taking place. The market players operating in this market can achieve a competitive advantage by providing cost-efficient, consistent and scalable equipment.

  • June 2019 - Ericsson, China Telecom and MediaTek achieve 5G SA data call with a commercial chipset-based terminal. The company's 5G Core which is based on a mature cloud platform will help to accelerate 5G commercialization and enable fresh use cases in new segments.
  • January 2018 - Nokia launched the world's first MulteFire(TM) small cell that enables enterprises, industries, smart cities, and MSPs to leverage global unlicensed spectrum for high-capacity, secure and high-coverage private LTE networks. The new small cell - the Nokia Flexi Zone MulteFire Multiband Pico BTS - is expected to allow companies and enterprises to connect mobile sensor-enabled 'things' and people more efficiently, thus enabling the new business models and paving the way towards future 5G connectivity. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Role of Femtocells in the Continuity of 4G and 5G

      2. 4.3.2 Demand for Heterogeneous Networks

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Skilled Professional Across Industries

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. TECHNOLOGY SNAPSHOT

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Application

      1. 6.1.1 Commercial

      2. 6.1.2 Residential

    2. 6.2 Geography

      1. 6.2.1 North America

      2. 6.2.2 Europe

      3. 6.2.3 Asia-Pacific

      4. 6.2.4 Latin America

      5. 6.2.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Nokia Corporation

      2. 7.1.2 Juniper Networks Inc.

      3. 7.1.3 Aricent Inc.

      4. 7.1.4 Airwalk Communications Inc.

      5. 7.1.5 Airvana Inc.

      6. 7.1.6 CommScope Inc.

      7. 7.1.7 Fujitsu Ltd.

      8. 7.1.8 ZTE Corporation

      9. 7.1.9 Netgear Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Femtocells Market market is studied from 2018 - 2026.

The Femtocells Market is growing at a CAGR of 41% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Nokia Corporation, Netgear Inc., ZTE Corporation, Fujitsu Ltd., Juniper Networks Inc. are the major companies operating in Femtocells Market.

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