The 4G equipment market has been forecast to boom at a compound annual growth rate (CAGR) of 47.49% through to 2016, driven by the exponential growth of network traffic, and the increasing investments in China.
4G revenues grew 115% in 2012 from 2011, fuelled by an onslaught of new deployments worldwide paired with the existing strong markets of Japan, North America, and South Korea.
The 4G market has been forecast to almost double in 2013, easily passing the $10-billion mark for the first time. Operators are in the midst of a second wave of 4G deployments, and LTE-Advanced is gearing for true 4G prime time, with NTT DOCOMO, SK telecom, and likely Russia's Yota all planning launches this year
China is expected to be a potential market for 4G equipment because all the major service providers in China such as China Telecom and China Unicom are investing heavily in 4G networks.
Moreover, the Chinese government is providing subsidies to service providers as well as equipment manufacturers, thereby further boosting market growth. The leading Chinese vendors such as Huawei and ZTE are growing at a rapid pace and are expected to challenge global players such as Ericsson in the future.
One of the major drivers is the exponential growth of network traffic. Consumers across the world have been increasingly using bandwidth-intensive services such as video streaming and mobile internet games, which require highly efficient network services. Since 4G networks are highly scalable, they facilitate improved network efficiency.
Ericsson maintains its lead in the 4G infrastructure market, though Nokia Siemens Networks is closing the gap as of the 4th quarter; meanwhile Alcatel-Lucent is number 2 for the full year 2012 and posted its best 4G quarter to date in 4Q12.
Key players currently dominating the 4G equipment market include Alcatel-Lucent, Ericsson Inc., Huawei Technologies Co. Ltd., and Nokia Siemens Networks.
For more information on the 4G equipment market, see the latest research: 4G Market Research
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