WITH increasing demand from consumers for connectivity for their mobile devices where ever they are, the market for femtocell devices is expected to grow.
Femtocells are small, low-power base stations that provide cellular signals, extending mobile phone network coverage or boosting signals to indoor, underground or remote areas. The femtocell in turn connects to the mobile service provider's network via a broadband connection.
According to a new report by Allied Market Research, the global femtocell market grew to US$304.8 million in 2013, and is expected to keep growing to reach $3,712 million by 2020. This growth spurt is expected to come as technological advancements and cheaper device costs increase adoption rates.
The report states that the increasing number of smartphone users is causing a rise in the adoption of broadband services and mobile phone usage for video conferencing, software/music downloading and online gaming. All these factors are driving the need for seamless connectivity, which is directly related to femtocell demand.
While femtocells are commonly found in Europe and the US, mobile network providers in the Asia-Pacific region, including Australia, have thus far been put off by the cost of the technology. There is also a lack of awareness about the capabilities of femtocells.
Femtocell technology market is segmented into two categories, namely SIP/IMS technology and IU-H technology. The technology market is majorly driven by increased application for IMS technology in small and medium enterprises and reduction in cost of IU-H technology.
Increases in applications of IMS/SIP femtocell among residential users have increased the growth of femtocell devices. IU-H technology has a major market share compared to SIP technology due to its multiple applications in networking services.
The global femtocell market by types is segmented into three major categories such as 2G, 3G and 4G femtocell. The transition of femtocell technologies from one generation to another is increasing the importance of the femtocell devices, with femtocell manufacturers gaining competitive advantage by manufacturing more advanced models that leverage newer cellular connectivity technology.