Market demand for LTE infrastructure equipment will peak in 2015, according to new market research from Infonetics, even as the number of LTE connections and subscribers worldwide continues to grow.
Tracking over 50 categories of equipment, software and subscribers across all existing generations of wireless network technology, Infonetics estimates that network operators are now spending around $5.6 billion per quarter on LTE. That has prompted the market research provider to raise its 2014 forecast for the global macrocell 2G, 3G and 4G mobile infrastructure market to $45.4 billion, up from $43 billion a year ago, according to a press release.
LTE Infrastructure Investment
Commenting on its latest market research results, Infonetics’ principal analyst for mobile infrastructure and carrier economics Stephanie Teral stated: “In the mobile infrastructure market, the third quarter of 2014 was almost a carbon copy of last quarter, and we are now reaching the peak of plain LTE rollouts, which are so brisk in China that they are overshadowing strong activity in Europe, the Middle East, and Russia.”
Other key takeaways from Infonetics’ 3Q 2014 2G, 3G, LTE Mobile Infrastructure and Subscribers report include:
- Investments initially earmarked for 2015 have shifted to 2014, reinforcing Infonetics’ prediction that the LTE market will peak in 2015;
- The worldwide macrocell 2G/3G/4G mobile infrastructure market totaled $11.2 billion in 3Q14, up 0.4% sequentially, and up 10% year-over-year;
- Nokia Networks moved into the #1 spot for LTE revenue in 3Q14, propelled by strong performances in the U.S. and China;
- China continues to push LTE through the roof, but the rest of the world is also moving fast to LTE, with 331 commercial networks launched as of September 2014, as per the GSA.