5G Small Cell Market Size, Share, Opportunities, And Trends By Deployment (Indoor, Outdoor), By Architecture (Integrated & Dual-Split, Single-Split), By Configuration (Standalone, Non-Standalone), By Type (Femtocell & Picocell, Microcell), And By Geography - Forecasts From 2024 To 2029

The 5G small cell market is expected to reach a market size of US$12.989 billion in 2029 from US$2.655 billion in 2022 at 25.46% (CAGR).

GROWTH DRIVERS

• The lower cost of small cells is driving their market demand.

In densely populated areas, the network speed slows down as numerous Wi-Fi share airwaves on the same channel, which increases the overall traffic. Hence, small cells assist in enhancing the 5G network density by improving the data transmission speed. Moreover, besides having high-performance capabilities, small cells don’t require any technical expertise. They are easy to deploy and install, lowering the operator’s overall operational cost.

Small cells, due to their highly flexible nature, lower radio frequency (RF) power production, and compact size, boost signal strength and extend their coverage to confined and indoor spaces such as commercial, enterprise, and residential units. Governments worldwide are investing in new ways to expand their 5G network access in urban and rural areas, and small cells are the way forward. For instance, as per the ‘Indian Telegraph Right Of Way Rules 2022) the rollout of 5G services would be facilitated by deploying telegraph infrastructure, and the rule incorporated provisions for installing small cells to bolster the network coverage. 

Small Cell Deployments

There are two deployment options for small cells- indoor & outdoor.

Indoor Deployment:

• Residential short-range small cells for indoor use
• Private Networks: Basements and In-Building Solutions

Outdoor Deployment

• Light poles, streetlights, transit stations, billboards, and water towers are examples of street furniture.
• Metro Pillars & Flyovers
• Smart Poles

Indoor deployment is set to account for a considerable market share as the major portion of mobile traffic originates indoors. Small cells play a major role in bolstering the network strength and providing seamless mobility. As per Nokia, nearly 80% of mobile broadband traffic is constituted by indoor and confined space settings.

The indoor small cell deployment enables mobile operators to provide adequate coverage in targeted specific locations. It also eliminates the possibility of signal propagation limitations, which was common in earlier versions of mobile technology. Demand for high-performance cellular services has led to adopting a new approach providing high-speed bandwidth without compromising network integrity.

Furthermore, collaborations are being made to bolster indoor 5G technology deployment, which is anticipated to positively impact the demand for small-cell technology.

For instance,

in March 2024, Ericsson formed a three-year NHP (Neutral Host Provider_ agreement with Advanced Communication and Electronics Systems (ACES), which will enable the latter to offer Ericsson’s multiple indoor products to multiple CSP (Communication Service Providers) to address the growing 5G demand in Saudi Arabia.

Following are the characteristics of indoor small cells that allow them to be a popular deployment option.

 Source: Telecommunication Engineering Centre

EMERGING OPPORTUNITIES IN THE GLOBAL 5G SMALL CELL MARKET

• Femtocell & Picocells

The 5G small cell market, by type, is segmented into femtocells & picocells, and microcells where the former is expected to hold a notable share fueled by their high applicability in residential and enterprise base stations. Their ability to minimize network congestion has been driving their demand in congested and densely populated areas.

Major companies such as Nokia are showing active participation in offering such small cells having plug-and-play deployment that ensures instant 5G expansion by utilizing the LAN network. For instance, Nokia’s “SmartNode” is a dedicated femtocell for indoor mobile applications that provides superior network coverage & capacity that can be scaled from single to multiple units. The low latency and high-quality coverage deliver ubiquitous 5G coverage for applications like immersive entertainment.

• Integrated & Dual-Split

Based on architecture, the 5G small cells market is divided into integrated & dual-split and single-split.

• Integrated & dual-split RAN architecture is estimated to constitute a significant share and will grow continuously during the forecast period. The architecture has provided a new scope for 5G networks in enterprises and commercial spaces where deployment scenarios are dynamic. Therefore, such complexities can be minimized through integrated & dual-split small cells.

SOME PRODUCT SOLUTIONS BY RAN ARCHITECTURE

Outdoor Small Cells

Outdoor deployment primarily supports MNO-deployed public networks in urban, suburban, and rural areas, and operators place cells in site forms where the best network coverage can be provided. Due to their high data density and compact power, the small cells can be deployed in private 5G environments such as commercial restaurants, malls, golf courses, stadiums, and hotspot locations.

The growing 5G deployment across the countries, backed up by initiatives undertaken by the government and market players to promote establishments in outdoor base stations and industrial spaces, has positively impacted the market demand for 5G small cells.

• In September 2023, Enersys launched the “DPX distribution Power Transport System” featuring the company’s “EnShield Technology”, which can accelerate outdoor 5G small cell deployments by reducing the usage of expensive and time-consuming electric connections. The solution addresses the issue of powering each small cell with the required electric utility to maintain a sufficient network supply.
• In November 2022, the Telecom Regulatory Authority of India (TRAI) released its recommendation, displaying street furniture usage for small cell deployment. Since lower bands used by macro radio stations have restricted carrying capability. Hence, outdoor small cells can be deployed to provide localized coverage. Utilizing city furniture, such as posts and other structures, for 5G small cell installation can eliminate the need for establishing thousands of network towers to bolter 5G coverage, thereby providing a cost-effective approach that can offer backhaul connectivity required by overhead fiber distribution using street furniture.

5G SMALL CELL MARKET GEOGRAPHICAL PRESENCE

The global 5G small cell market consists of major countries undertaking various measures to expand the deployment of 5G technology across their nations. Some major countries include the USA, Japan, South Korea, China, and Germany. The countries have undertaken various measures for the faster deployment of 5G technology through small cells, thereby promoting the small cell market growth. For instance,

• In October 2023, Nokia launched “DAC PW Compact”, based on the “Nokia AirScale” small-cell. It is designed to address the growing demand for wireless connectivity in small and medium industrial settings. Zero upfront investments and the ability to align with coverage requirements have made the solution a cost-effective wireless connectivity option for small industrial sites.
• In February 2022, Telefónica, in collaboration with Qualcomm Technologies, Askey, and Node-H, developed an all-in-one standalone 5G small cell with flexible and reliable services. The cell is powered by the “QUALCOMM FSM100” 5G RAN platform and N-ode-H’s scalable security management software. Its modular architecture separates the small cell’s CU, RU, and DU functionalities, thereby adding extra flexibility.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson, Qualcomm, and Airspan. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings.

PRODUCT OFFERINGS BY MAJOR PLAYERS

5G Small Cell Market Scope: 

The 5G Small Cell market is segmented and analyzed as follows:

• By Deployment
  • Indoor
  • Outdoor
• By Architecture
  • Integrated & Dual Split
  • Single-Split
• By Configuration
  • Standalone
  • Non-Standalone
• By Type
  • Femtocell & Picocell
  • Microcell
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others