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Femtocells are referred to as low power devices that are used to connect mobile devices to service providers? network using residential DSL or cable broadband for improved mobile network coverage. Femtocells enable improved transmission of both data and voice, hence are gaining popularity among mobile subscribers. The devices are either used as standalone or combined with other networks such as Wi-Fi or macro cell.
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Femtocells offer a range of benefits such as scalable utilization, macro cellular technology that enabled backward compatibility, reduced transmission power, device portability, low-cost deployment, and improved network coverage that helps in extending mobile battery life. The global femtocells market had a valuation of US$420 million in 2012 and is expected to reach US$4,706 million by 2019, displaying aggressive growth at 37.1% CAGR for the period 2013 to 2019.
Integration of Femtocells with Other Technologies for Higher Operational Performance
In urban areas, poor network due to weak signal in buildings and persistent focus of network operators to close network gaps are major forces driving the global femtocells market. By installing femtocells, customers can experience continuous communication for indoor use at reduced charges. For such reasons, femtocells are used in residential, public space, and enterprise segments.
Furthermore, technological advancements, diminishing cost of the devices, and growing popularity of integrating femtocells with other technology are all leading to robust growth of the femtocells market. Integration of femtocells with RFID, Wi-Fi or other technologies helps achieve high operational performance, and thus will provide potential opportunities for the market in near future.
The availability of substitute products is a major factor inhibiting the growth of this market. Substitutes such as picocells and Wi-Fi have higher performance than femtocells, hence challenging the femtocells market.
In spite of many advantages associated with femtocells, high equipment cost reduces affordability, making it a major concern among market participants. Developing countries like Taiwan that have low production will penetrate the market and bring down the cost of these equipment in coming years.
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High Broadband Penetration Promising for Europe Femtocells Market
By geography, the femtocells market is divided into North America, Asia Pacific, Europe, and Rest of the World. Among the regional markets, North America dominated the market in 2012, which is mainly due to high adoption and accentuated demand for technology from residential and enterprise sectors. Europe ranks second in terms of market share in the global market. Government initiatives for deployment of femtocells and commitment from mobile operators will aid the growth of the market in this region.
Femtocells equipment were first adopted by network operators in 2007, and have emerged from a test product to mainstream in a short duration. In developed countries of Western Europe, Japan, and Korea, due to high broadband and mobile penetration these regions offer opportunities for increased growth and higher revenues for femtocells vendors. Availability of broadband services is opportune for installation of femtocells in these regions.
Some of the top companies operating in the market are Airvana LLC, Cisco Systems, Ericcson, Gemtek Technology Co Ltd, Nokia Siemens Network, Netgear Inc., Alcatel-Lucent, NEC Corporation, and Samsung Electronics.
Browse the full Femtocells Market press release report at http://www.transparencymarketresearch.com/pressrelease/femtocells-market.htm
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