The wireless network infrastructure market has experienced a 4% decline due to the reduction in independent macrocell RAN (Radio Access Network) investments. According to SNS Research, the market is expected to recover with a compound annual growth rate (CAGR) of 2% from 2017 to 2020. A key driver of this recovery is the growing investment in heterogeneous networks (HetNet) and 5G NR (New Radio), which began gaining traction in 2019.
By 2025, 5G networks are projected to account for over 40% of total wireless network infrastructure spending, up from just 5% in 2020. This rapid adoption reflects the increasing demand for high-speed connectivity and the need for more efficient and scalable network solutions.
SNS Research also highlights that global revenues from 2G, 3G, and 4G wireless infrastructure reached nearly $56 billion in 2016. However, the market faced a contraction in 2017, primarily due to reduced spending on traditional macrocell RAN infrastructure. Despite this, the shift toward 5G and next-generation technologies is expected to create new opportunities for infrastructure providers.
Looking ahead, significant investments in 5G NR, NextGen core networks, and backhaul infrastructure are anticipated between 2020 and 2025. These developments are expected to drive continued growth and transformation in the wireless network sector. As mobile operators navigate economic uncertainty, they are increasingly focusing on innovative solutions to meet rising consumer demand for faster and more reliable connectivity.
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