Femtocell boom predicted as prices fall

triangleThe size of the global femtocell market was $304.8m in 2013, according to a new report by Allied Market Research.

The report titled “Femtocell Market (Types, Technology, Applications and Geography) – Global Analysis, Trends & Forecast through 2020,” predicts the femtocell  market to be worth $3.7bn by 2020

A factor is the anticipated reduction in the cost of femtocell mini mobile basestations, which can be used to add network capacity where it is needed.

“Due to the cost involved in installing femtocell devices, the Asia-Pacific region is not readily accepting the femtocell technology. Lack of awareness is also acting as a restraint for the market growth in Asia-Pacific region,” said the AMR report.

Femtocells are used in home based connections to enhance the mobile network. In 2012, more than 30% of the mobile calls originated from home users and it is expected that in next few years, majority of voice calls packet data would originate from home settings.

Femtocell technology market is segmented into two categories, namely SIP/IMS technology and IU-H technology. The technology market is majorly driven by increased application for IMS technology in small and medium enterprises and reduction in cost of IU-H technology.

“Increases in applications of IMS/SIP femtocell among residential users have increased the growth of femtocell devices. IU-H technology has a major market share compared to SIP technology due to its multiple applications in networking services,” said the AMR report.

The  report also pointed out that the importance of femtocell technologies is increasing as mobile networks move from 3G to 4G rollouts.

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