LONDON--(EON: Enhanced Online News)--Technavio analysts forecast the telecom power systems market in North America to grow at a CAGR of more than 8% during the forecast period, according to their latest report.
“As small cells are playing a significant role in the present wireless networks, designing an effective power system to deploy also plays a vital role. Alpha offers turnkey solutions for DAS and small cell networks with its wide range of products.”
The research study covers the present scenario and growth prospects of the telecom power systems market in North America for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the major vendors operating in the market. It includes vendors across all geographical regions.
Mobile networks are continuously being deployed in most of the rural areas due to the increasing number of subscribers. Initially, macro cells were deployed in excess, which is no longer sufficient to provide wide coverage. Macro cells are insufficient to extend services to remote locations. Therefore, the need for small cells and Wi-Fi is highly in demand to serve the additional capacity requirements.
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Technavio ICT analysts highlight the following three factors that are contributing to the growth of the telecom power systems market in North America:
- Increased deployment of small cell power systems for LTE
- Regulatory demand for reduced OPEX
- Rise in mobile data traffic
Increased deployment of small cell power systems for LTE
With the drastic growth of mobile data traffic, telecom operators are forced to extend the network coverage area by rolling out several wireless telecom networks in both rural areas and high-density metropolitan cities. The broadband capacity demand is increasing in step with rising number of Internet users, mobile device users, and mobile applications.
Abhishek Sharma, a lead M2M and connected devices analyst at Technavio, says, “As small cells are playing a significant role in the present wireless networks, designing an effective power system to deploy also plays a vital role. Alpha offers turnkey solutions for DAS and small cell networks with its wide range of products.”
Regulatory demand for reduced OPEX
In the US, around 5% of the overall revenue and almost 14% of OPEX for telecom operators are spent on energy resources required to operate telecom towers, core networks, and metro networks. However, in North America, the telecom operators have been facing a significant deterioration in the revenues of voice following the reduced usage of voice-based services and declining ARPU that affects their overall profit margins.
“Telecom operators are taking measures to reduce OPEX to enhance their profit margins, while telecom tower operators are moving from the traditional DC power systems to highly efficient hybrid energy solutions, which is ultimately driving the revenue of the telecom power systems market,” adds Abhishek.
Rise in mobile data traffic
The increased popularity and use of smart devices led to a rise in mobile data traffic during 2010-2015. The growth in mobile data traffic is driven by an increase in the number of data capable devices and high-bandwidth applications. In addition, the availability of high-speed broadband networks will drive the growth of mobile data traffic during the forecast period.
North America dominates the market share of global traffic volume than their subscription numbers imply. There is high penetration of high-end user devices and well-built WCDMA and LTE networks along with reasonable packages of large data volumes. This has led to higher data usage per subscription.
- Delta Electronics
- Emerson Network Power
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