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Factors Behind the Huge Revenue Expansion of 4G Equipment Market

03-31-2020 05:36 AM CET | Media & Telecommunications

Press release from: AMR

4G technology is evolving rapidly and provides enhanced network connectivity. Despite this, connectivity is still a major issue in rural areas of many developing countries such as India, Philippines, Indonesia, and China. Thus, need for strong 4G internet connectivity and equipment provides an opportunity for the market growth in these countries.

According to a recent report published by Allied Market Research, titled, "4G Equipment Market by Component and Technology: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global 4G equipment market was valued at $40,415.4 million in 2018 and is projected to reach $185,050.8 million by 2026, growing at a CAGR of 20.5% from 2019 to 2026.

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Moreover, emergence of new social media platforms and applications, and increase in trend of Video on Demand (VoD) services is fueling the growth of network traffic; thereby boosting the demand for the 4G equipment market.

In addition, wireless broadband companies and carriers have already started launching their own 4G multimedia services worldwide, which is further driving the revenue for service providers, thus driving the market growth for 4G equipment. Furthermore, growing competition among competitors to provide better service to their customers is also anticipated to fuel the market growth in the coming years.

The global 4G equipment market is dominated by key players such as Airspan Networks Inc., Cisco, Fujitsu Limited, Huawei Technologies Co. Ltd., Motorola Solutions, Inc., NEC Corporation, Nokia Corporation, Samsung Electronics Co. Ltd., Telefonaktiebolaget LM Ericsson, ZTE Corporation, and others.

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The key players have adopted various growth strategies to enhance and develop their product portfolio, strengthen their 4G equipment market share, and increase their market penetration. For instance, in April 2019, Bharti Airtel (Airtel), India's leading telecommunications services provider announced an agreement with Ericsson to expand its VoLTE services in India. The agreement is expected to result in Ericsson Cloud VoLTE solution deployment, a solution to deliver VoLTE services onto the customer data center. Moreover, in July 2019, Huawei won a tender to construct the 4G network in Kyiv's subway stations, through which Fujitsu is expanding its business in Ukraine.

Global 4G equipment market trends include increase in multimedia and streaming services. The multimedia service providers have benefited from the 4G networks as they enable faster internet connectivity and allow seamless streaming.

Based on component, the infrastructure equipment segment dominated the market in 2018 and is expected to remain dominant during the 4G equipment market forecast period. The growth of this segment is mainly attributed to increase in number of connected and mobile devices across the world and specifically in Asia-Pacific. For instance, according to a GSM Association report on The Mobile Economy in 2017, 4G is anticipated to account for 48% overall connections by 2020.

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Asia-Pacific generated the highest revenue as well as experienced rapid growth in 2019 and is expected to dominate the 4G equipment market size throughout the forecast period. Rise in penetration of smartphones and increase in awareness of mobile phone usage are the major reasons fueling the market growth in this region. Further, enterprises from various industry verticals are also demanding strong and sustainable internet connectivity. The need to narrow down the connectivity gap is leading to the adoption of 4G network equipment by various telecom service providers (TSPs).

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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