Skip to main content

Mobile Infrastructure Revenue Reached $43B in 2016

Mobile telecom service provider global infrastructure investment in 2016 was not what vendors had anticipated. But there were pockets of growth that in a few key markets where mobile internet demand had fueled local expansion.

According to the latest worldwide market study by IHS Markit, during the fourth quarter (Q4) of 2016, the global macrocell mobile infrastructure market totaled $11 billion, rising 7 percent sequentially, driven by strong activity in a few Asian countries such as India, Myanmar and Vietnam.

Mobile Infrastructure Market Development

On a year-over-year basis, the overall market declined 14 percent, dragged down by all regions -- essentially confirming that the mobile infrastructure market has entered the post-LTE-peak era.

4G LTE was somewhat of a bright spot -- up 6 percent quarter-over-quarter driven by E-UTRAN (evolved UMTS terrestrial radio access networks) -- but down 16 percent year-over-year.

2G or 3G infrastructure spending was up 10 percent sequentially, somewhat kept alive by wideband code division multiple access (W-CDMA) demand in Japan.

But none of this was enough to save the year for the mobile communication infrastructure vendors.

Looking at the full-year 2016, worldwide mobile infrastructure revenue totaled $43 billion, falling 10 percent from the $48 billion in 2015 -- with China reported to be leading the overall decline.

Revenue for the software that goes with 2G, 3G and 4G mobile networks grew just 2 percent in 2016 from 2015, to $15.5 billion, mostly driven by LTE-A (LTE-Advanced) upgrades.

In the battle for market share, Ericsson, Huawei and Nokia nabbed the top three spots in 2016. That said, according to the IHS Markit assessment, the Chinese vendors were negatively impacted by the decline in China, a market where they are the most exposed.


Outlook for New Infrastructure Investment

As of January 30, 2017, 581 total commercial LTE networks have been launched. All indicators point to a year of 4G LTE decline in 2017 as a result of diminishing new service rollouts worldwide.

Moreover, IHS Markit forecasts the LTE market to decline at a compound annual growth rate (CAGR) of -12.4 percent from 2016 to 2021, sinking to $12 billion from its peak of $25.9 billion in 2015.

Besides, early 5G rollouts won't be enough to push the overall market back into growth territory, although by 2021 5G mobile infrastructure is projected to be a multi-billion dollar market worldwide.

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent