Market Trends of US Voice-over LTE (VoLTE) Industry
5G Deployment is Expected to Drive the Market
- The United States has solidified its position as a global frontrunner in deploying and embracing fifth-generation (5G) mobile technology. 5G, the latest in mobile tech, surpasses its predecessor, 4G, with a slew of enhancements. Most notably, its pioneering download speeds have captivated audiences, facilitating rapid 4K content streaming and the smooth delivery of home broadband services through fixed wireless access (FWA).
- According to Ericsson, the US is rapidly adopting 5G; subscriptions are expected to hit 405.4 million by 2028. Projections suggest that by 2030, over 90% of US connections will be 5G, aligning the nation with Canada and South Korea and surpassing Germany, the United Kingdom, and Japan.
- Verizon, a US-based telecommunications giant, declared that its 5G Ultra Wideband network covered over 200 million individuals, encompassing approximately 60% of the US populace. Its ambitious target is to extend this coverage to 250 million by 2024. In a parallel move, AT&T reported that its 5G low-band network reached 290 million, with the mid-band serving 150 million.
- In July 2023, responding to escalating demand, UScellular unveiled its mid-band 5G network, which was expected to span ten states: Illinois, Iowa, Maine, Missouri, Nebraska, Oklahoma, Oregon, Virginia, Washington, and Wisconsin. The company aimed to reach over a million households with its mid-band 5G signal by the end of 2023; it has a target of three million households by the end of 2024.
- In the United States, live video streaming to smartphones is on the rise. Major players like Apple, Major League Baseball, Amazon Prime, Netflix, and various OTT platforms, alongside social media giants like YouTube, are fueling the need for robust internet connections. Noteworthy streams range from sports and music to gaming. This surge in online activity is poised to propel the VoLTE market in the US.
Understand The Key Trends Shaping This Market
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Commercial Activities and Development of High Speed Internet are Expected to Drive the Market
- The convergence of voice-over LTE (VoLTE) with the Internet of Things (IoT) represents an emerging trend with significant implications for the market. VoLTE integration can enhance IoT applications by offering high-quality voice interaction capabilities for devices requiring two-way communication, such as security systems and medical alert devices. In industrial settings, voice-over LTE (VoLTE) facilitates reliable machine-to-machine (M2M) communication, enabling the monitoring and control of machinery and processes.
- For instance, in May 2024, Ericsson hosted an exclusive event at its US 5G Smart Factory located in Lewisville, Texas. During the event, attendees were given a tour of the facility and engaged in programming aimed at unveiling the inner workings of the 5G Smart Factory. Ericsson announced an additional investment of USD 50 million, supplementing the initial USD 100 million investment, to further expedite local production. This initiative aims to meet the increasing demand for 5G infrastructure made in the US in compliance with the Build America Buy America Act (BABAA).
- In 2023, US manufacturing firms significantly ramped up their automation efforts, with industrial robot installations surging by 12% to reach a total of 44,303 units. The automotive sector led the charge as the primary adopter, closely trailed by the electrical and electronics industries, as reported by the International Federation of Robotics. According to GSMA, robotic systems require very high speeds and a robust internet connection. These speeds are usually above 100 Mbps with latency not more than 1 ms. The rise in smart factories, connected systems, automation, and Industry 4.0 in the region will exponentially boost the demand for 5G/4G VoLTE networks.
- In order to boost and expand its high-speed internet connection, the US government is making significant investments. For instance, in June 2023, the Biden-Harris Administration unveiled plans to inject USD 930 million into bolstering America's high-speed internet networks. Additionally, it committed a substantial USD 42.5 billion to ensure universal high-speed broadband access for all Americans by the end of the decade. These initiatives, focusing on bolstering infrastructure with components like fiber optics, routers, and data centers, are poised to significantly enhance the region's VoLTE network.
- As technology advances and the demand for reliable, high-quality communication in IoT applications increases, the adoption of VoLTE in the US is set to grow. The ongoing rollout of 5G networks will amplify the capabilities of VoLTE, offering greater bandwidth, reduced latency, and enhanced reliability. The US market is witnessing rapid growth in VoLTE product launches by various companies.
