Telecom Network Infrastructure Market Size, By Component (Product [Base Stations {Macrocell, Microcell, Picocell, Femtocell}, Infrastructure Components {Routers & Switches, Access Points, Firewalls}], Service [Network Consulting, Integration & Deployment, Support & Maintenance]), By Connectivity Technology (2G, 3G, 4G/LTE, 5G), By End User (Telecom Service Providers, Enterprises), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jan 2020  |  Report ID: GMI4493  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 290   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Telecom Network Infrastructure Market size exceeded USD 80 billion in 2019 and is estimated to grow at around 4% CAGR between 2020 and 2026 owing to developments in the 5G spectrum and commercialization of 5G technologies.
 

Increasing cellular internet penetration and exponential growth in data volumes are expected to accelerate the adoption of 5G networks, significantly impacting the industry. 5G spectrum is characterized by high peak data rates, extremely low latencies, and robust connection density, providing enhanced user experience. This has driven telecom providers to transition from existing infrastructure and invest in new network technologies to meet the consumer demand for high-speed internet access.


Several major telecom operators have conducted successful trials for the deployment of 5G network. In March 2019, NTT DOCOMO, Inc., a leading telecom operator, expanded its partnership with overseas partners in countries including the U.S., Israel, and Japan for 5G trials involving a 5G mobile test network established in Guam. This partnership helped the company to verify 5G compatible systems and equipment for new business solutions.
 

Another factor contributing to the telecom network infrastructure market share is the rising proliferation of smartphone devices. In the 2019 report published by GSM Association, the leading industry body of global telecom providers, more than 700 million new cellular subscribers are expected to be added by 2025. In addition, nearly 32 million jobs will be supported by the growing telecom ecosystem.
 

Telecom Network Infrastructure Market

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The telecom network infrastructure industry is expected to undergo a profound disruption over the forecast timespan as video streaming and digital content consumption continue to drive the demand for better and resilient telecom infrastructure. Major telecom providers are expanding the breadth of their network capabilities and partnering with digital entertainment providers to augment business growth.
 

Telecom network infrastructure is the backbone for delivery of data and voice traffic and introduction of new technologies including network virtualization, cloud services, and heterogeneous network integration will create new avenues for market growth. Telecom providers are strongly focusing on the delivery of high quality, cost-effective services for remaining competitive in the highly dynamic and competitive market.
 

In December 2019, Ericsson, a leading Swedish telecom provider, partnered with Telstra, an Australian telecom company, to jointly launch cloud-native 5G services on its network. The launch is expected to help the company expand its 5G service across 35 global cities by July 2020.
 

Telecom Network Infrastructure Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 80 Billion (2019)
Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 4% 2026 Value Projection: USD 100 Billion (2026)
Pages: 290 Tables, Charts & Figures: 476
Geographies covered (23): U.S., Canada, UK, Germany, Italy, Spain, France, Netherlands, Russia, China, India, Japan, South Korea, Australia & New Zealand, Southeast Asia, Brazil, Mexico, Argentina, Colombia, South Africa, Saudi Arabia, Israel, UAE
Segments covered: Component, Connectivity Technology, End User and Region
Companies covered (20): Altiostar Networks, Inc., Altran Technologies, SA, Check Point Software Technologies Ltd., Ciena Corporation, Cisco Systems, Inc., CommScope, Inc., Fortinet, Inc., Fujitsu Ltd., Huawei Technologies Co., Ltd., Juniper Networks, Inc., NEC Corporation, Nokia Corporation, Inc, Palo Alto Networks, Inc., Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd., Sierra Wireless, Inc., SonicWall Inc., Sprint Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation.
Growth Drivers:
  • Commercialization of 5G network
  • Adoption of Software defined Network (SDN) infrastructure
  • Rising smartphone penetration
  • Increasing demand for data center consolidation and server virtualization
  • Growing demand for private LTE networks
  • Extensive usage of LTE technology in smart cities applications
Pitfalls & Challenges:
  • Vulnerability to cyberattacks
  • Interoperability issues
  • Lack of standardization in spectrum allocation

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Growing uptake of wireless devices augmenting the product segment

The product segment held the majority of the market with 80% share in 2019 and is expected to hold its dominance over the forecast timespan. This is driven by rising adoption of telecom network infrastructure products for handling the increasing network loads generated by the proliferation of wireless devices.
 

The Mobile Economy 2019 reported that the total number of mobile subscribers globally crossed the five billion mark in 2018, accounting for approximately 67% of world’s population. The rising number of wireless devices has pushed telecom operators to upgrade the breadth of their telecom infrastructure by deploying advanced infrastructure products such as virtual routers, managed switches, and next-generation firewalls.
 

The increasing importance of wireless access points in supporting sophisticated features, such as multistate management and cloud scalability, will further proliferate hardware segment growth in the telecom network infrastructure market. The rising use of cloud-based solutions for wireless communication and the increasing demand for Voice Over Internet Protocol (VoIP) are supporting the adoption of wireless access points products across the telecom industry.
 

For instance, in September 2019, Emerson partnered with Cisco to introduce Cisco Catalyst IW6300 Heavy Duty Series Access Point that combines advanced Wireless HART sensor technology. This partnership is helping the company provide reliable and secure connectivity in harsh industrial environments.
 

Extensive usage of 4G/LTE for improving service delivery in the U.S.

U.S. Telecom Network Infrastructure Market By Connectivity Technology

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4G/LTE in the U.S. dominated the telecom network infrastructure market share with over 70% in 2019 due to extensive uptake of 4G technologies for accelerating service delivery and improving cellular network performance. 4G technology has been the foundational platform, which propelled the smartphone revolution, powering video streaming, digital content consumption, and e-commerce applications on smart devices.
 

Telecom providers have shown a strong interest in the adoption of 4G/LTE for higher bandwidth, reduced latency, and vastly improved network capacity. The 2018 Mobility Report reported that mobile operators globally invested more than USD 1 trillion between 2012 to 2018 to upgrade their network infrastructure for 4G compatibility.
 

For business enterprises, 4G has assisted in increasing the performance of enterprise-level applications such as real-time file sharing, cloud deployment, handling big data, and low latency communications. Furthermore, 4G/LTE have significantly impacted data consumption patterns of consumers.
 

According to the 2018 data released by Telecommunication Regulatory Authority of India (TRAI), the average data usage per month per subscriber in India rose from 59.62 MB in 2013, to 3,206 MB in 2018 after the entry of 4G services. The increasing trend of uptake of 4G/LTE services by consumers has propelled the players operating in the telecom infrastructure industry to focus strongly on upgrading their infrastructure and enabling the latest 4G implementations.
 

Telecom network infrastructure developments profoundly impacting telecom operators in Europe

Europe Telecom Network Infrastructure Market By End Use

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In Europe, the telecom service provider segment will grow at an impressive CAGR of over 5% till 2026 due to widescale expansion of telecom network infrastructure by these enterprises. According to the 2018 press release by Vodafone group, cellular data traffic is expected to grow at more than 60% annually between 2018 to 2022. This has created new avenues for telecom operators to target customers and increase profitability.
 

As data services are the leading business segment for majority of telecom providers, expansion and upgrading of telecom network infrastructure are being undertaken at a rapid pace to ensure competitiveness and maintain market share.
 

Furthermore, 92% of telecom providers in Europe upgraded their infrastructure for enhancing voice calling services and providing high-speed cellular data. Sharing and leasing of telecom network infrastructure among telecom providers are also proliferating telecom network infrastructure market size. For instance, in January 2019, Vodafone UK and O2 partnered to share their telecom infrastructure for accelerating the rollout of 5G services.
 

Robust telecom infrastructure fueling the telecom network infrastructure market growth in China

China Telecom Network Infrastructure Market Size, By Service, 2019 & 2026 (USD Million)

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China held majority of the market revenue share with over 25% in 2019 and will continue dominating through 2026. Highly developed telecommunications infrastructure, a matured telecom industry, and increasing penetration of mobile devices are propelling the uptake of telecom network infrastructure across the country, pushing China as a regional leader in telecom network infrastructure.
 

According to the 2019 data reported by the Ministry of Industry and Information Technology (MIIT) of the Chinese government, China owns the world’s largest 4G network, with more than 5 million 4G base stations and 1.2 billion subscribers.
 

Furthermore, telecom providers in the country are strongly committed toward early commercialization of 5G technologies, with more than 2 million base station sites being identified for 5G infrastructure upgrades. These initiatives coupled with the world’s largest mobile subscriber base of over 802 million will augment the growth of telecom network infrastructure in the country.
 

Focus on strategic alliances and infrastructure sharing for business growth

Prominent players operating in telecom network infrastructure market are focusing on upgrading their existing telecom infrastructure and forging strategic alliances with other leading enterprises to leverage economies of scale through telecom infrastructure sharing.
 

In September 2019, the Digital Communication Commission (DCC), under the Indian Ministry of Telecommunications, approved infrastructure upgrading of projects worth USD 12.06 billion for providing better 4G connectivity in rural India. This has created lucrative opportunities for telecom operators in the country for securing long-term government contracts and increasing revenue generation.
 

With 72 operators testing 5G services in 2019 and 51 more operators expected to launch services by 2020, the industrial rivalry is expected to intensify rapidly during the next few years. This has propelled telecom providers to upgrade their existing infrastructure for efficient rollout of 5G services, along with leasing their infrastructure to other enterprises.
 

For instance, in December 2019, German telecom carrier Deutsche Telekom upgraded its infrastructure to launch 450 base stations with 5G support. This is expected to help the company launch its 5G services across 16 cities in Germany from 2020.
 

Some of the players operating in the telecom network infrastructure industry include Altiostar Networks, Inc., Altran Technologies, SA, Check Point Software Technologies Ltd., Ciena Corporation, Cisco Systems, Inc., CommScope, Inc., Fortinet, Inc., Fujitsu Ltd., Huawei Technologies Co., Ltd., Juniper Networks, Inc., NEC Corporation, Nokia Corporation, Inc, Palo Alto Networks, Inc., Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd., Sierra Wireless, Inc., SonicWall Inc., Sprint Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation.
 

The telecom network infrastructure market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

By Component

  • Product
    • Base Stations
      • Macrocell
      • Microcell
      • Picocell
      • Femtocell
    • Infrastructure components
      • Routers & Switches
      • Access Points
      • Firewalls
  • Service
    • Network Consulting
    • Integration & Deployment
    • Support & Maintenance

By Connectivity Technology

  • 2G
  • 3G
  • 4G/LTE
  • 5G

By End User

  • Telecom Service Providers
  • Enterprises

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Israel
       

Frequently Asked Questions (FAQ) :

According to analysts at GMI, China held majority of the market revenue share with over 25% in 2019 and will continue dominating through 2026.
In Europe, the telecom service provider segment will grow at an impressive CAGR of over 5% till 2026 due to widescale expansion of telecom network infrastructure by these enterprises.
4G/LTE in the U.S. dominated the 70% market share in 2019 due to extensive uptake of 4G technologies for accelerating service delivery and improving cellular network performance.

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