Market Trends of Telecom Power Systems Industry
This section covers the major market trends shaping the Telecom Power Systems Market according to our research experts:
Access Application in 5G Holds the Significant Share in the Market
- 5G is a recent wireless broadband technology and is marketed as the fifth generation of radio technologies. There is a target for the firms for the bit rate to have peak data rates of 100 MB/s up to 20 GB/s in the downlink. However, 300 MB/s rates have yet to be achieved in practical implementations. 5G employs a sub-6 GHz spectrum ranging from 450 MHz to 6 GHz as well as mmWave frequencies ranging from 24 GHz to 52 GHz.
- This increasing penetration of 5G in such a short span of time can be a major driver for the market studied, as this will fuel the deployment of more cell sites. This improvement in infrastructure isn't just happening in a few countries in the area; it's happening in many.
- With increasing data traffic globally, 5G connectivity will be incorporated in many enterprises to ensure operational efficiency and minimize losses associated with operational breaches. The 5G network will support a variety of technologies, including the Internet of Things (IoT), outdoor robots that can function independently in the agriculture sector, etc.
- DongAh Elecomm supplies rectifier and hot-swap power supply modules, power shelves, and energy systems for the fast-developing and multi-functionalized communications industry. DongAh Elecomm's power is behind the 4G/LTE small cell deployment for South Korea's three major service providers: Korea Telecom, SK Telecom, and LGU+, which deployed more than 300,000 small cell systems across the Republic of Korea over three years.
- According to Ericsson, total mobile data traffic may continue to increase globally and is predicted to reach 131 exabytes per month by the end of 2024. This implies a 30% compound annual growth rate between 2018 and 2024. By 2024, the firm expects that 5G networks will carry 35% of total mobile data traffic.
During the forecast period, the market for telecom power systems is likely to be driven by investments in building the infrastructure needed for 5G technology to be used in the business world.
North America Account for Significant Market Share
- North America has been one of the first places to use most new technologies, and telecom technologies are no exception. In North America, 94% of people have a mobile phone.
- Ericsson says that by the end of 2025, there will be 318 million 5G mobile subscriptions, which is more than 80% of all mobile subscriptions in North America. This may increase the demand for telecom power systems.
- So, to meet the needs of future 5G services in terms of capacity, coverage, and efficiency, network operators in the United States are investing in their networks to get the best performance at the lowest cost per bit. They are doing this by using new technologies like network function virtualization (NFV) and software-defined networking (SDN) to make their networks as efficient as possible.
The rationale behind the increasing adoption of these technologies can be a driving factor for the telecom power systems market, as advancements in these technologies bring increased internet speeds for end users, which are achieved by the use of higher frequencies. When higher frequencies are used, network coverage gets smaller. This means that more mobile towers need to be set up to cover all customers, which will eventually drive the telecom power systems market.
