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The mobile fronthaul market is estimated to grow at a CAGR of 19.14% between 2022 and 2027. The size of the market is forecast to increase by USD 6,492.05 million. The growth of the market depends on several factors, including the growth of mobile computing devices, the growing popularity of social networking applications, and the rise in demand for network connectivity to implement the Internet of Things (IoT).
This report extensively covers market segmentation by end-user (telecommunications, networking, government, and enterprises), type (cloud ran and centralized ran), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of mobile computing devices is notably driving the market growth, although issues such as interference in cellular networks may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in the adoption of mobile computing devices is the key factor driving the growth of the global mobile fronthaul market. The global smartphone market has grown rapidly since 2000 when the first smartphone, the Ericsson R380, was launched. Smartphone upgrade cycles are very short. Therefore, they have evolved into devices with phone, computer, and camera capabilities. The need for higher bandwidths like 4G is growing as the increasing capabilities of smartphones enable faster internet speeds compared to previous generation technologies like 3G and 2G. Advanced technologies such as haptics, gesture recognition, facial recognition, heart rate monitoring and global positioning system “GPS” are increasingly being implemented. Trackers and voice recognition in mobile computing devices are driving demand for high-speed communication standards. These technologies use high-bandwidth frequencies provided by 3G/4G networks. The integration of advanced technologies into mobile computing devices has increased the need for networks that can support high-bandwidth applications. Therefore, the growth of mobile computing devices and the need for networks capable of supporting high-bandwidth applications will drive the growth of the global mobile fronthaul market during the forecast period.
The offering of mobile fronthaul solutions such as eCPRI and C-RAN by different companies is the primary trend in the global mobile fronthaul market. Several telecom companies are implementing 5G services to improve service capabilities. 5G services are expected to be rolled out in various regions in the next few years. The current scenario of giving network service providers a competitive edge in their 5G deployments could inspire them to focus on C-RAN investments in the coming years. 5G technology is designed and developed to provide high bandwidth with low latency. 5G addresses multiple network needs, including high-capacity users, ultimately leading to massive connectivity issues. The efficient use of spectrum and network resources to reduce the total cost of ownership (TCO) is also a major concern. Rising demand for 5G network technology is expected to increase demand for C-RAN network solutions and services in the coming years. Therefore, increasing adoption of 5G technology is expected to drive the growth of the global mobile fronthaul market during the forecast period.
Cellular network interference is a major challenge to the growth of the global mobile fronthaul market. Cellular network interference is a common RAN problem. Interference at cell sites is due to the improved conductivity of passive devices such as cables, connectors, and antennas. This internal interference can cause intermodulation signals in the same frequency bands as mobile transmitters. In addition, another common problem of interference in cellular networks is frequency refarming. Refarming is a cost-effective approach to increase Long Term Evolution (LTE) and Universal Mobile Telecommunications System (UMTS) capacity without bidding for new spectrum. As cellular technology evolves to LTE, carriers are using frequency refarming to deliver higher data rates to mobile devices while supporting technologies such as Global System for Mobile Communications (GSM) and Broadband Code Division Multiple Access (WCMDA). As a result, cellular site disruption is likely to pose a major challenge to the growth of the global cellular fronthaul market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Mobile Fronthaul Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Broadcom Inc: The company offers different mobile fronthaul solutions such as Open RAN Alliance. Along with this, it offers digital, mixed-signal, and analog products.
The report also includes detailed analyses of the competitive landscape of the market and information about 14 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the telecommunications segment will be significant during the forecast period. Networking is a key source of information for the global mobile fronthaul market. Networking handles connections between one device and another in a simple way. For high-speed connectivity between devices, mobile fronthaul has emerged, enabling 4G and 5G and wireless connectivity with cloud databases. As data demand increases, network traffic increases, and network operations must scale to meet that demand.
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The telecommunications segment was valued at USD 934.30 million in 2017 and continue to grow by 2021. Mobile fronthaul supports wireless communication networks such as 4G and 5G networks and the Internet of Things (IoT). Fronthaul enables reliable network connectivity by using fiber optic connections to provide connectivity with low idle times and high data transfer rates. Mobile fronthaul refers to fiber optic links that combine individual RRUs or remote radio units or heads (RRHs) with baseband units (BBUs) to support cloud and converged radio access network designs. These devices help network operators introduce new services, reduce CAPEX, and deliver quality of service (QoS) at all stages of the network lifecycle, including R&D, manufacturing, deployment, and service assurance. A fiber-based connection between a baseband unit (BBU), which performs signal processing functions to generate radio signals, and a remote radio head (RRH), which converts radio signals to radio frequency (RF) signals. They control network traffic. Such factors are expected to drive the growth of the global mobile fronthaul market during the forecast period.
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Europe is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe has several major operators such as Deutsche Telekom, Orange, Vodafone, Telefonica and TIM (Telecom Italia). These carriers have large fixed and mobile customer bases. To remain competitive in the market, these telecommunications service providers are investing heavily in developing their telecommunications network infrastructure to serve a wider customer base.
The growing interest in smart city initiatives by government agencies in the region is driving the deployment of 4G/5G networks. For example, smart grid projects have become an important part of the European technological landscape. According to Europa, the European Union (EU) plans to replace 80% of its energy meters with smart meters by 2020. Due to the growing interest in energy saving, smart homes are also becoming more popular in the region. Home automation includes automating all connections, allowing lights, heating/cooling systems and other devices to be turned on or off depending on whether the room is occupied or not. This results in significant energy savings. Several European governments have taken initiatives to promote smart home adoption.
In Europe, the rising number of COVID-19 cases has had a significant impact on the demand for mobile fronthaul networks in the first half of 2020. However, several national governments in the region lifted lockdown restrictions in the third quarter of 2020, resuming business activities for various end-user industries such as private enterprise networks and telecommunications service providers. This is expected to boost the demand for 4G and 5G services in the region and spur the deployment of mobile fronthaul networks during the forecast period. Therefore, the European market is expected to grow moderately during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global mobile fronthaul market as part of the global telecommunications equipment market within the overall global information technology sector. The broader global telecommunications equipment market includes manufacturers of enterprise networking products such as LANs, WANs, routers, telephones, switches and central offices. Technavio also includes the telecom infrastructure or telecom equipment market within the telecom equipment market.
Mobile Fronthaul Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.14% |
Market growth 2023-2027 |
USD 6492.05 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.44 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 32% |
Key countries |
US, Canada, China, Germany, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Broadcom Inc., Capgemini Service SAS, Ciena Corp., Cisco Systems Inc., EXFO Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., Infinera Corp., LS Networks, MACOM Technology Solutions Holdings Inc., NEC Corp., Nokia Corp., Omnitron Systems Technology Inc., Telefonaktiebolaget LM Ericsson, and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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