Technology | Media | Telecommunications

Friday, July 25, 2014

Femtocell Market Development Upside in Emerging Nations

Demand for access to the mobile internet creates opportunities for new wireless technologies. Femtocells are small cellular base stations used to provide wireless connectivity for mobile devices such as smartphones and media tablets.

According to the latest market study by Allied Market Research, the global femtocell device market was valued at $220 million in 2012 and is expected to grow at CAGR of 42.9 percent during 2013-2020.

A significant increase in the applications of smartphone for and media tablets availing value-added services has fueled the growth of femtocell market.

Reductions in cost of electronic devices -- such as mobile phones, laptops -- have increased the demand for femtocells. The growth of femtocell market in developing economies is hampered due to the higher cost.

High initial investment required for the setup and the limited usage in home based applications of femtocell does not justify the investment made by consumers in the Asian countries.

Flexibility in networking technology trends is also reducing the revenue for femtocell device and service market.

The global femtocell market has enormous potential in developing economies in future, as companies are trying to explore the untapped market of mobile users, especially in China and India.

The global femtocell market is expected to grow in the U.S. and it is estimated to be the fastest growing market among all other markets during analysis period.

Developed countries such as Europe, Australia, and U.K. have a higher adoption rate of femtocell technology as compared to developing countries. This is mainly due to cost involved in femtocell applications.

Due to alternate technologies and their penetrations, the femtocell market prices are expected to decrease in the Asian market. Similarly, mobile network service providers are promoting the application of femtocell in developing countries.

The network service providers are using femtocells as compared to conventional broadband services in commercial applications due to their effectiveness in enterprise market.

The key market players operating in this market are generating competitive advantage by adopting strategic agreements and collaborations for developing novel products and services.