Market Trends of RF Industry For Fixed Wireless Access
The Expansion of 5G Infrastructure to Support the Market's Growth
- The arrival of 5G technology is proving to be a game changer for many industries, including the fixed wireless access industry. The 5G wireless communication protocol is helping FWA gain traction both at the millimeter wavelengths (mmWave) and the sub 6 GHz frequencies. 5G's deeper network infrastructure, greater spectral efficiency, and spectrum availability significantly improve FWA's economics, new deployment, and technical feasibility.
- For many network operators worldwide, FWA's 5G version is viewed as a way to expand revenue opportunities and help monetize investments in the 5G and wireless spectrum, as it helps them provide service just by utilizing the unused spectrum. Considering such trends, for many operators, FWA is also emerging as one of the leading use cases for 5G. Such trends are also positively influencing the demand for RF components.
- The expansion of 5G coverage across various countries is also expected to influence the market's growth positively. China and North America are among the leading regions wherein the deployment rate of 5G is the highest. For instance, according to MIIT, by the end of 2022, China had about 2.31 million 5G base stations.
- The growing subscriber base and new business opportunities driven by the low latency and high-speed connectivity feature of 5G are also encouraging network operators to expedite the deployment of 5G networks across various countries, creating a favorable outlook for the studied market. For instance, according to Ericsson, the number of mobile 5G subscribers is expected to reach 4,372.73 million by 2027, from 553.95 million in 2021.
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Asia-Pacific to Hold a Significant Market Share
- The Asia-Pacific region holds great potential for the growth of the RF market for fixed wireless access. The region has been witnessing rapid growth in the adoption of digital technologies, driving the demand for a stable and high-speed data connection. The presence of a large consumer base also favors the market's growth in the region.
- The Asia-Pacific region also has a fast-growing e-commerce market and a growing demand for digital services, such as streaming services, online gaming, and social media. 5G FWA can provide the high-speed internet required to support these services, making it an attractive option for consumers in the region.
- The cost of any service is also among the major factor influencing the consumption pattern, especially in the emerging Asia-Pacific markets. As the deployment of fiber cable to support broadband infrastructure is costly, FWA's simple deployment and relatively lower operational cost may drive its growth in the region.
- Another major factor influencing the market's growth in the region is the rapid expansion of the 5G network. Countries such as China, South Korea, and Japan are emerging to be among the leading countries in terms of the deployment of 5G networks. For instance, according to VIAVI Solutions, a global provider of network test and monitoring solutions, China was among the leading countries in the region in terms of the availability of 5G services in most cities (356 in 2023). China was followed by South Korea, with 5G services available in 85 cities, and Japan, with 76 cities.
- The Asia-Pacific region is also recognized as the global manufacturing hub, with several FWA RF component manufacturing vendors having an extended presence in the region.
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