The global in-building wireless market size is projected to grow from USD 10.3 billion in 2020 to USD 18.0 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.9% during the forecast period. Major factors such as the need for unique and defined network coverage, implementation of public safety measures, digital transformation, and smart and intelligent building trends are expected to drive the growth of the global in-building wireless market.
There are significant growth opportunities for in-building wireless vendors. The commercialization of 5G services and availability of unlicensed and shared spectrum in the globe are expected to shape the future of the in-building wireless market. The high initial cost of deployment may pose a challenge to market growth. Many countries are still facing challenges while investing in the infrastructure of in-building wireless solutions.
The COVID-19 pandemic has affected every segment of society, including individuals and businesses. During the COVID-19 pandemic, the telecom sector is playing a vital role across the globe to support the digital infrastructure of countries. Every individual and government, irrespective of federal, state, central, local, and provinces, has been in constant touch with one other in the society to provide and get real-time information on COVID-19. Currently, healthcare, telecommunication, media and entertainment, utilities, and government institutes are functioning day and night to stabilize the condition and facilitate prerequisite services to every individual.
COVID-19 cases are growing day-by-day, as several infected cases have been on the rise. In line with individuals, COVID-19 has a massive impact on large enterprises and SMEs. Core industries, such as manufacturing, automotive, textile, transportation and logistics, travel and hospitality, and consumer goods, have been closed due to country-level lockdown across the globe. This would have a substantial impact on the global economy in terms of the decline in GDP. Since ages, SMEs are acting as the backbone of the economy. In the current situation, SMEs are the most affected due to the COVID-19 pandemic.
Driver: Increasing Demand for Network Coverage and Capacity
In-building wireless solutions are deployed to cope up with the instability faced by the cellular carrier networks with actuating data traffic in buildings such as offices, hospitals, hotels, and shopping malls. The reduced RF performance, facing power losses, and intermodulation challenges are covered by in-building wireless solutions utilizing DAS, in-building wireless equipment, and small cells. Moreover, providing Wi-Fi coverage in large buildings is critical, with the need to provide a seamless user experience that offers better indoor coverage. The lack of indoor wireless network coverage and capacity issues has actuated the MNOs/Mobile Virtual Network Operators (MVNOs) and neutral host providers to leverage the in-building wireless solutions.
Restraints: Proving Economic Backhaul Connectivity Across Small and Medium Buildings
The microwave backhaul network faces the problem of Line of Sight (LoS). In contrast, the deployment of the fiber backhaul network for in-building wireless solutions is difficult due to its high cost and low availability in many cities. In the macro network, wireless operators handle backhauls through high-bandwidth, low-latency fiber-optic cables or directional, point-to-point microwave antennas. However, neither of the options are economical in a small-to-medium building, raising the challenge of getting all those cellular users connected to the world outside.
Opportunity: Emergence of Industrial and Commercial IoT
Organizations across various verticals are consistently trying to increase the use of IoT for automating their processes and increasing the throughput. Hence, the proliferation of IoT and associated technologies would create numerous opportunities for the in-building wireless market. The in-building wireless network allows users to integrate diverse sensors, machines, people, vehicles, and other devices across a wide range of applications and usage circumstances. Any in-building wireless network takes care of issues, such as reliability, service quality, security, and compliance. Companies such as Nokia, Samsung, and Cisco are some of the major players that are working toward the incorporation of in-building wireless networks in IoT.
Challenge: 5G for Indoor Coverage
5G is still evolving as its first deployments are still being made. There are several variables and unknowns about both the technical details, such as spectrum bands and antenna configurations. However, a 5G network for in-building infrastructure comes with recent parallel developments, such as Wi-Fi 6, optical Local Area Networks (LANs), digital remote powering, smart buildings, and edge-computing. In a 5G world of neutral hosts and localized spectrum, various new firms might turn into providers of indoor systems, rather than staying as end-users. They may also be able to get direct revenues from end-users (in a similar fashion to Wi-Fi today), or perhaps cut wholesale deals with national (or international) operators.
Neutral Host Operators Segment Sector to Grow at the Highest CAGR During the Forecast Period
In-building wireless networks can be served via the following business models: service providers, enterprises, and neutral host operators. As per the business requirements, businesses and property owners opt for either of the above-mentioned business models. These models operate depending on the bodies funding the implementation of these systems. Neutral host operators manage an in-building wireless network for businesses. Under the neutral host ownership model, DAS and small cells networks are owned by a neutral host operator that manages the end to end in-building wireless networks. These operators are also responsible for approvals from carriers and the selection of a suitable RF source-based on the blueprint of the facility where DAS and small cells need to be deployed. The neutral host operators primarily fund their business by developing multicarrier DAS and invoicing the carriers.
