Due to a decline in macrocell RAN infrastructure spending, the wireless network infrastructure market is forecast to remain relatively flat through 2020, with annual investments of over $61 Billion, according to a new report by SNS Research.
The report predicts a significant shift in investments towards small cells, C-RAN, DAS and carrier Wi-Fi infrastructure. By 2020, these four submarkets, together with their fronthaul and backhaul segments, will account for over 50% of all wireless network infrastructure spending.
According to the market research firm, Small cell and C-RAN solutions are beginning to converge as small cell OEMs seek to capitalize on the benefits of centralized coordination for in-building and enterprise coverage.
Driven by ongoing large scale deployments, SNS Research estimates that LTE networks will generate nearly $800 Billion in annual service revenue by 2020.
At the same time, vendors are increasing their focus on profit margins. Many are already cutting staff, embracing operational excellence, evolving their new business models, acquiring niche businesses and expanding their managed services offerings. The new CapEx commitment avenues such as HetNet infrastructure and virtualization will also continue to usher industry restructuring, and market consolidation.
The term Wireless Network Infrastructure has conventionally been associated with macrocell RAN (Radio Access Network) and mobile core segments of mobile operator networks.
