TD-LTE Ecosystem Market: Ubiquity of Smartphones Driving Demand

A fresh study by Transparency Market Research (TMR) suggests that a number of companies are currently connected to the value chain of the global TD-LTE ecosystem market, which is a clear indication of widespread opportunities in a developing market scenario. The report identifies Huawei Technologies Co. Ltd., Nokia, Samsung Electronics Co. Ltd., Telefonaktiebolaget L. M. Ericsson, AT&T, Inc., ZTE Corporation, Qualcomm Inc., MediaTek, Inc., Broadcom Corporation, and Spreadtrum Communications Inc. as some of the most prominent companies in the global TD-LTE ecosystem market.

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As per the projections of the report, the demand in the global TD-LTE ecosystem market will increase at a phenomenal CAGR of 24.4% during the forecast period of 2017 to 2025, estimating it to achieve a global worth of US$264.00 bn by 2025, mounting from its evaluated valuation of US$40.80 bn in 2016. The report notes that a number of significant TD-LTE network deployments have occurred in the past three years, such as Sprint in The U.S., Bharti Airtel in India, and SoftBank in Japan, as a result of spectrum availability and decreased deployment costs. China based vendor, Huawei, is a highly respectable name in the global TD-LTE ecosystem market. The company signed a US$45.0 mn contract with Italian ISP Tiscali in September 2016. On the other hand, Ericsson also holds a significant chunk of shares in the global TD-LTE ecosystem market, capitalizing on upcoming deployment opportunities in both Asia Pacific and Europe.

Equipment-wise, macro cells have considerably more demand than small cells, whereas on the basis of device type, notebooks serve maximum revenue share of the market, than other segments including PCs, smartphones, routers, and tablets. Application-wise, the market for TD-LTE ecosystem has been classified into retail, banking institutes, healthcare, and personal uses. Geographically, North America currently is the most lucrative regional market, although Asia Pacific offers widespread opportunities too.

Ubiquity of Smartphones Driving Demand

Escalating demand for LTE with growing ubiquity of smartphones is the primary driver of the global TD-LTE ecosystem market. Apart from smartphones, the growing propagation of an array of other Internet enabled mobile devices such as tablets and e-readers has led to increasing consumer need to access ‘on the go’ rich content. Popularity of social media has caused an explosion of mobile data traffic, generating exceptional demand on the network of wireless operators. Bandwidth concentrated applications, especially video-based, render the restricted access and the gap that the clients are progressively facing between peak rates in actual experiences every day and perfect conditions. Therefore, it is vital for operators to confirm that the average mobile experience of the users is not negotiated especially in high traffic areas.

Cost Factors Hindering Prosperity

Despite a highly prosperous future, there are a few factors obstructing the proper growth of the global TD-LTE ecosystem market. Complexity and backward compatibility is one such restraint. The operators who are considering a network update, must choose the appropriate technology. Either they upgrade to an evolved version of 3G like HSPA and HSPA+ or they opt for LTE. Upgrading within the 3G family does not require network architectural changes as such, whereas transforming to LTE needs core network expansion and new radio access technology. This process is highly complicated as well as cost intensive.

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As per the author of the report, “Advancement in wireless infrastructure is one of the major opportunities in the global market of TD-LTE ecosystem. Advancement in wireless infrastructure is likely to create opportunities in the global TD-LTE ecosystem market. Various standardization bodies are developing higher frequencies and higher data rates having shorter transmission ranges. Early use of some technologies like 802.11ac assures a Gigabit per second from a single access point.”

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