The Lte Market is estimated to be valued at US$ 6213.75 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
LTE or Long-Term Evolution is a standard for high-speed wireless communication for mobile phones and data terminals. LTE enables broadband Internet access via specially adapted mobile phone. It allows carriers to use more advanced technologies such as orthogonal frequency-division multiple access (OFDMA) on the downlink and single-carrier frequency-division multiple access (SC-FDMA) on the uplink. LTE aims to improve spectral efficiency, reduce costs, improve services, make use of new spectrum, and better integrate with other open standards.
Market Dynamics:
Growing adoption of IoT connectivity is expected to drive the LTE market growth over the forecast period. IoT connectivity enables connection and communication between electronic devices over the internet to share data with minimal human intervention. Increasing application of IoT technology in various industries such as healthcare, automotive, manufacturing, and others has accelerated the adoption of LTE networks. This is expected to boost the LTE market growth. Moreover, increasing adoption of 4G smartphones coupled with improving 4G infrastructure is another factor fueling the demand for LTE networks. Government initiatives to encourage LTE network deployment in rural areas is also anticipated to offer lucrative growth opportunities for market players in the near future.
Segment Analysis
The LTE market is dominated by the Infrastructure segment which holds the largest market share of around 55%. This is because the infrastructure segment is the core component of LTE technology and comprises base stations, radio access networks and Evolved Packet Core. The infrastructure provides connectivity between the user equipment and operators core network to facilitate high speed data transfer and connectivity. The infrastructure also enables seamless transfer of voice and data traffic across various network technologies.
PEST Analysis
Political: The governments across different countries have launched various initiatives to encourage deployment of LTE networks. For example, the Indian government introduced the National Digital Communications Policy to boost 4G proliferation and fiberization.
Economic: The rising demand for high speed internet and broadband connectivity from industries as well as consumers is fueling investments in LTE infrastructure. The commercial applications of IoT and industrial IoT are also promoting 4G network upgrades.
Social: The growing consumption of internet video, audio streaming, online gaming and use of over-the-top media services has increased the need for high bandwidth networks. The young population is increasingly adopting smart devices and digital services.
Technological: Carrier aggregation allows operators to bond multiple spectrum blocks together to deliver speeds up to 3 Gbps. VoLTE technology allows high definition voice calls over 4G networks. NSA and SA deployment modes help operators switch to 5G by re-using their existing LTE infrastructure.
Key Takeaways
The Global LTE Market Growth is expected to witness high growth, exhibiting CAGR of 78.% over the forecast period, due to increasing mobile data traffic and proliferation of IoT devices. The mobile data traffic in the world is estimated to grow at a CAGR of 46% between 2020-2027.
Regional analysis: Asia Pacific region dominates the LTE market with a share of over 35% owing to large consumer base, growing adoption of smartphones and increasing investments by telcos to develop 4G infrastructure in densely populated countries like China and India. China alone accounted for over 40% of global 4G subscriptions in 2021.
Key players: Key players operating in the Lte market includes AT&T Inc., Huawei Technologies Co. Ltd., Verizon Wireless, Nokia Solutions and Networks B.V., Sprint Corporation, Alcatel-Lucent, T-Mobile US Inc., LM Ericsson, China Mobile Ltd., and Bharti Airtel Ltd. Ericsson and Huawei together control over 50% of the global LTE infrastructure market owing to their comprehensive product portfolio and large customer base worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.