LTE Infrastructure Market: Global Industry Analysis and Forecast 2015 - 2021

Elements of LTE infrastructure include E-UTRAN (Evolved UMTS Terrestrial Radio Access Network), E Node B, and EPC (Evolved Packet Core). Due to the saturation in 2G and 3G networks and quest for higher data rates, demand for global LTE deployment is increasing considerably. With the evolution of the LTE network, service providers have been looking for data-only networks, carrying voice in a packet data form. Furthermore, LTE infrastructure is being installed to upgrade core networks, backhauls and base stations in order to make systems more modern and spectrally efficient. Increasing usage of internet and smarter mobile devices has been creating demand for more refined web-based applications. This, in turn, creates demand for more sophisticated infrastructure. With small cells achieving strong momentum, the infrastructure market is expected to experience further growth. Rapid proliferation of infrastructure for internet and smart devices has created high demand for sophisticated web applications that in turn demand more sophisticated infrastructure. There is an increasing trend of integrating LTE infrastructure with existing UMTS network infrastructure. In order to save cost, service providers often prefer sticking to existing vendors to avoid any compatibility issues.

The growth of LTE infrastructure is driven by rising demand for high data rate transmission and improved spectral efficiency, which in turn is driven by increased data usage. Further, rising demand for public safety LTE infrastructure is expected to drive the growth of LTE infrastructure market in the coming years. Lack of availability of compatible devices, especially for LTE Advanced, is one of the major challenges for growth of LTE infrastructure market. However, it is anticipated that mobile phone manufacturers would launch more devices that would be compatible to emerging LTE technologies. Anticipated large scale adoption of LTE in Asia Pacific, especially China, is a major opportunity in this market. Traffic average throughput per user was almost double in 2013 as compared to 2012. Telecom companies and service providers need to maintain secure, high quality network infrastructure and interoperable communication and services. Cost saving is of utmost importance. Choosing the right network equipment supplier from the onset requires utmost intelligence regarding vendors, equipment and service performance, cyber security, network design and quality management. Network equipment integrators provide the service of network installation and maintenance, and have a high degree of integration with network equipment vendors.

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North America was the largest geographical market in terms of revenue generation for LTE, followed by Asia Pacific in 2012. Major drivers for the growth of LTE in North America include rising demand for faster networks with increase in smarter devices and rapid growth in deployment of public safety LTE networks. The market for LTE in Asia Pacific is set for dynamic growth during the forecast period, as operators in the region have taken up large scale build and trial of LTE networks to cope with the massive amount of data traffic. TD-LTE is likely to experience a boom in adoption as China, the U.S., Middle East, Australia, East and North Europe, and South Asia are either launching or have planned the launch of networks for TD-LTE.

In the coming years, LTE Advanced is poised to drive the growth of LTE infrastructure as major operators across the globe have been assessing and testing the LTE Advanced networks. South Korea based SK Telecom rolled out LTE Advanced in 2013 across the country. Key players in this market include Alcatel-Lucent SA, Antenova, CDG, Berkeley-Varitronics Systems, Cisco, Ericsson, Huawei Technologies Co. Ltd., Nokia Solutions and Networks B.V., Qualcomm Inc. and ZTE Corp.

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