Double digit LTE base station market growth

March 25, 2017 // By Jean-Pierre Joosting
Market research firm ReportsnReports contends that by 2020, approximately 2.2 billion mobile connections will be using LTE technology out of the total 8.5 billion mobile connections. The firm expects the LTE base station market to grow at a CAGR of 17.01 percent from 2017 to 2021.

A key trend in the market is the growth of complementary technologies such as software-defined networking (SDN) and network functions virtualization (NFV). SDN facilitates new revenue streams for telecom operators by re-examining network architectures, introducing virtualization, and providing intelligence. NFV leverages advancements in server virtualization and enterprise IT virtualization. On the other hand, SDN allows logical centralization of control functions. SDN and NFV enable more flexibility and seamless integration with infrastructure layers.

An increase in the number of data-capable devices and high-bandwidth applications is contributing to the growth in the mobile data traffic. It is expected that the global mobile data traffic will surpass 30 exabytes by 2020, growing at a CAGR of 59% from 2015 to 2020.

According to the LTE base station market report, one driver in the market is the increasing demand for network capacity to access connected services. There is a continuing growth in demand for faster mobile broadband communication for a seamless integrity of connected devices. Internet connectivity is an important access channel to support and enable communications over large-scale IoT devices. The advent of high-speed 4G LTE wireless networks has supported high-bandwidth M2M applications. The roll out of 4G LTE-M and LTE-U, and 5G networks is expected to facilitate faster transmission and higher volumes of data in the smart ecosystem.

The LTE base station market is expected to grow constantly because of the rising demand for high-speed broadband services and the growing consumer awareness of IoT applications such as connected homes and automobiles.

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