Femtocells Market - Research and Development to be Primary Focus of Industry Players

Femtocells are low power wireless access points that connect mobile devices to operators’ network using a cable broadband or residential DSL connection. Using these devices, a network operator can provide high quality voice and data transmission to its subscribers. Some of the benefits of femtocells are scalable deploying, backward compatibility with the macro cellular technology, reduced transmission power, portability of devices, low-cost deployment and improved coverage that results in prolonging mobile battery life among others. By installing a femtocell, a customer can experience seamless communication through excellent indoor coverage at reduced charges. Femtocells are used in residential, enterprise and public space segments, where enterprise segment is expected to experience fastest growth in the coming years.

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The global femtocell market was worth USD 420 million in 2012 and is expected to reach USD 4,706 million in 2019; growing at a CAGR of 37.1% from 2013 to 2019. The market has witnessed robust growth due to technological advancements in the femtocell technology and decreasing cost of femtocell devices. Additionally, its high adoption in the residential segment coupled with increasing demand from the enterprise segment is driving the market. Furthermore, the growing popularity of integrated femtocells is additionally supporting the market.

A major factor restraining the growth of femtocells market is the availability of substitutes in the forms of Wi-Fi and picocells. These devices are superior to femtocells and thus femtocells are facing tough competition from them at present. However, the adoption of femtocells in the enterprise segment and the growth of LTE femtocells are expected to drive the demand in the coming years. Moreover, integration of femtocells with other technologies such as Wi-Fi and RFID provides potential opportunities to the market in the coming years.

Geographically, North America acquired the largest market in 2012. This is due to high adoption and increasing demand for this technology from both residential and enterprise sector. The market is expected to grow further, with mounting femtocell deployments by key mobile operators. Europe follows North America and developments in the form of femtocell deployments and commitments by mobile operators are expected to positively support this market in the coming years.

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Airvana LLC, Alcatel-Lucent, Cisco Systems, Ericsson, Gemtek Technology Co. Ltd., ip.access Ltd., NEC Corporation, Netgear, Inc., Nokia Siemens Networks, Samsung Electronics and Texas Instruments are some of the key players in the femtocells market where, Cisco Systems enjoyed the maximum revenue share in 2012.

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