Wireless Communication Equipment Market size is expected to gain remarkable traction over 2021-2027, given the rapid advancements in wireless technologies to offer ultra-fast internet experiences. Strong focus on the deployment of 5G networks across the mobile industry to support the advances in intelligent automation, including IoT, will also drive the demand for wireless communication systems. Wireless communication refers to a method of transmitting information without the use of any connection like cables, wires, or physical medium. It is considered the most vibrant and fastest-growing technological area in the field of communication. Apart from its primary mobility profits, myriad advantages of wireless communications include flexibility and ease of use.
Shifting preferences from feature phones to entry-level smartphones, especially during the coronavirus pandemic, is a prominent trend boosting the wireless communication equipment market size. Telecom operators have been placing high emphasis on bringing 2G customers onto their existing 4G-powered networks and have entered deals with various smartphone makers to enhance shopping experiences. However, a lack of adequate security in wireless communication networks in emerging economies, which often leads to data theft and corruption of data integrity, may impede the market outlook over the estimated timeline.
With respect to type, the wireless communication equipment market share from the radio wave segment is projected to register commendable growth by 2027. This is due to the significant propagation properties offered by the technology. Other types of wireless communication equipment include infrared, satellite equipment and microwave communication components. Consistent growth in satellite technology to provide a wider coverage will bolster the market outlook.
Regionally, North America is likely to emerge as a lucrative revenue pocket for the wireless communication equipment market by 2027. This strong growth is attributable to the rising government investment to boost broadband access in the region. In 2021, U.S. President Joe Biden announced a $2.25 trillion infrastructure plan, out of which the government will spend $100 billion to deploy broadband networks in rural America over the next 8 years. Moreover, the plan includes the reduction of internet costs for low-income individuals, which is also anticipated to bolster the regional industry outlook.
Key wireless communication equipment industry participants include Samsung Electronics and Co., Cisco Systems, Juniper Networks, Ciena Corporation, ZTE Corporation, Ericsson, Toshiba Electronics Devices, Nokia Networks, and Huawei Technologies, among others. Strategic alliances and product innovations are among the initiatives being undertaken by these companies to increase their share across the global market. For instance, in October 2020, NASA named Nokia as a partner to deploy the first 4G/LTE communication system on the lunar surface. This network will be ideally suited for offering wireless connectivity for astronauts to carry out exchange of telemetry and biometric data, among other applications.
The novel coronavirus pandemic has resulted in unprecedented economic challenges worldwide due to the temporary shutdown of businesses and movement restrictions. Among other industries, the technology, media, and telecom sector also encountered short-term challenges, including delays in shipments of network equipment. Supply chain disruptions of materials for the telecom sector may, in turn, impede wireless communication equipment industry progress to a certain extent.
Due to the escalating social and economic disruptions during the outbreak, however, people across the globe are continuously relying on wireless technologies while maintaining social distancing and working from home. Several telecom operators have also benefitted from a surge in data and voice traffic, which could create a positive influence on the wireless communication equipment market demand, in order to provide consumes means to stay connected during the pandemic.
Market, By Type
Market, By End-Use
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