Femtocell Market Overview:
Femtocell market was valued at $304.8 million, and is expected to reach $3,712 million by 2020. Femtocells are cellular base stations used to provide wireless connectivity for mobile devices such as smart phones. Femtocell is usually used in areas where the strength of mobile signal is weak. Femtocell access points facilitate feasible access to voice and data services. Increase in applications of Smartphone for availing value added services has fueled the growth of femtocell market. Reductions in cost of electronic equipment such as mobile phones, laptops and other internet devices have increased the demand for femtocell. The femtocell market growth in developing economies is hampered due to the higher cost. High initial investment required for the setup and the limited usage in home based applications of femtocell does not justify the investment made by consumers in the Asian countries. Flexibility in networking technology trends is also reducing the revenue for femtocell device and service market. The global femtocell industry has enormous potential in developing economies in future, as companies are trying to explore the untapped market of mobile users, especially in China and India.
Femtocells are generally used in commercial, consumer and public access areas. However, it is largely used for home purposes to enhance the mobile network. Over 30% of the mobile calls are originated from home based users and it is expected that in next few years, approximately all the voice calls packet data would originate from home based users. Poor network service is the key cause of operator switching by the users. Consumers are mostly switching from one operator to another due to poor network quality. Due to the increase in adoption of 3G and 4G network services, the Europe and the U.S. femtocell market share is expected to increase in future. However, Asian market is conquered by highest number of internet users that accounted for 43% of the total internet users around the globe, followed by Europe with 24% of the total users.
Higher penetration of broadband and mobile phones with high requirement of improved network coverage for end users applications such as video conferencing, software/music downloading and internet games are driving femtocell market. Moreover, rise in disposable income level, advancement in network technologies such as 4G, rising demand for smart phone and increasing entertainment in mobile market are expected to stimulated the market growth positively. However, femtocell market in developing economies is hampered due to cost factor. The average cost of a femtocell was in the range of $100-200$ in 2012. High initial investment required for the setup and the limited usage in home based applications of femtocell does not justify the investment made by consumers in the Asian countries. Network service providers are also facing challenges due to stringent government regulations which are curbing the growth of femtocell in developing economies. Flexibility in networking technology trends is also reducing the revenue for femtocell device and service market. Femtocells are chiefly challenged by existing technologies such as modem and broadband connection. These technologies are currently dominating the wire line networking market in developing countries; moreover, cost of these services is quite feasible to consumers as compared to cost of femtocells, which is again acting as a restraint for this market.
The global femtocell market size is expected to grow in the U.S. and it is estimated to be the fastest growing market among all other markets during analysis period. Developed countries such as Europe, Australia, and U.K. have a higher adoption rate of femtocell technology as compared to developing countries. This is mainly due to cost involved in femtocell applications. Due to alternate technologies and their penetrations, the femtocell market prices are expected to decrease in the Asian market. Similarly, mobile network service providers are promoting the application of femtocell in developing countries. The network service providers are using femtocells as compared to conventional broadband services in commercial applications due to their effectiveness in enterprise market. The key market players operating in this market are generating competitive advantage by adopting strategic agreements and collaborations for developing novel products and services. The most dominant players operating in this market include Ubiquisys, Alcatel-Lucent, Samsung, Huawei Technologies and Airvana. These players are adopting partnership as a strategy with small players, to offer them domain expertise for femtocell technology.
Global femtocell market is segmented into four major categories in this report, namely type, application technology, and geography. There are three types of femtocells 2G,3G, and 4G femtocells. The application segment is categorized into consumer, commercial, and public space. The technology segment is categorized into, SIP/IMS femtocell technology and IU-H femtocell technology. Femtocell market’s geography is categorized into North America, Europe, Asia-Pacific and RoW.
The global femtocell market has enormous potential in developing economies in future, as companies are trying to explore the untapped market of mobile users, especially in China and India. Advancement in technology in terms of equipment and capacity is the main factors to be analyzed by companies. Thus, market players operating in this business can achieve a competitive advantage by providing cost efficient, consistent and scalable equipment. Key companies operating in the market that are included in company profiles are, Airvana, Inc., UbeeAirWalk, Inc., Alcatel Lucent, Nokia Solutions and Networks B.V, Samsung Electronics Co. Ltd, Ubiquisys Ltd., Aricent, Inc., Fujitsu Limited, Vodafone Group, Plc. and China Mobile Ltd.
- This report provides market scenario of current trends and revenues that are forecast from 2012- 2020
- Market intelligence for key developmental strategies adopted by top companies are explained with impact analysis
- Practical evaluation of key market drivers and restraints for global femtocell market segments such as applications and technologies are dealt
- Emphasis is laid on key factors affecting the growth of global femtocell market. These factors are critically analyzed to reveal the most influencing factors in femtocell market forecast
- Patent analysis of recently granted patents are explained according to geographies that gives market intelligence of future trends and transitions
Femtocell Market Key Market Segments
- IMS/SIP Femtocell Technology
- IU-H Femtocell Technology
- 2G femtocell
- 3G femtocell
- 4G femtocell
- Public Space
- North America
- Telecommunication Services Providers
- Government Authorities
- Networking Device Manufacturers
- Wireless Electronic Device Manufacturers