Distributed Antenna System Market Forecast to Reach $13.9 Billion by 2025

Distributed Antenna System Market is forecast to reach $13.9 billion by 2025, growing at a CAGR of 8.6% from 2020 to 2025. The market for distributed antenna system systems has been boosted by developments in communication technology that have led to the development of high-speed connectivity, lower power consumption of network devices, and greater connectivity coverage. When it comes to internet connectivity and elevated bandwidth, the distributed antenna system has helped industries overcome many shortcomings. This is the reason why in various other regions and industries it is also finding further acceptance. The growing demand for high-speed connectivity everywhere has been one of the main factors for distributed antenna system penetration. As technology has proven to be cost-effective, this antenna system has even been proactively deployed by governments around the world. Better-defined coverage, fewer coverage holes, same coverage using lower overall power, as well as individual antennas that do not need to be as high as a single antenna for equivalent coverage are some of the benefits that drive the demand for distributed antenna system.

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Distributed Antenna System Market Segment Analysis - By Offering

During the forecast period service segment is expected to grow at a CAGR of 10.9%. Installation services form a significant group of services which contribute to the overall growth of the market for distributed antenna systems. The main factor contributing to the growth of the market for installation services is the variations in the installation procedures that must be considered before laying down the distributed antenna system network. The growing demand for high-speed connectivity everywhere has been a major factor in the penetration of DAS. As technology has proved to be cost-effective, this antenna system has been proactively deployed by governments across the globe.

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Distributed Antenna System Market Segment Analysis - By Application

Public Safety DAS application is projected to grow during the forecast period at the highest CAGR. These systems provide wireless service via an antenna system, particularly to buildings, to ensure that wireless communications within a building structure and on-the-job in emergency situations can be maintained by emergency responders. Enabling emergency communication is crucial for men and women who, when it comes to public safety, are often the first on the scene. In the case of public safety, both the National Fire Protection Association (NFPA) and the International Fire Code (IFC) will need to meet the system coverage requirements of the DAS design. While the IFC requires 95% coverage in all areas, the NFPA requires 99% coverage in areas of vital importance, such as those designated by the local fire department. With higher fire-related deaths in countries such as the United States, due to the increasing significance of public safety, DAS is expected to experience increased adoption.

Distributed Antenna System Market Segment Analysis - By Geography

APAC is expected to dominate the global Distributed Antenna System market with a share of more than 32%. APAC is one of the regions where, in the recent past, DAS deployment has been increasing. Internet penetration has been on the rise with telecommunications technology upgrades in the Indian market, one of the major contributors to the market. Even the government has intervened to ensure that telecommunication operators share DAS owned by them so that all operators' customers can have the threshold bandwidth everywhere, and these new technologies have wider adoption. The government also suggested that in hospitals, which have at least 100 beds and malls covering a minimum area of 25,000 square feet, state governments implement DAS. This indicates the intention of governments to make high bandwidth technologies successful with their direct impact on the market for DAS. The market in APAC is expected to grow owing to the growing number of smartphone users, rising penetration of high-speed internet connectivity, and rapid urbanization.

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Distributed Antenna System Market Drivers

Increasing mobile data traffic

The need for more macrocell deployments has been propelled by the increase in the number of subscribers. The provision of seamless coverage via macrocell base stations is becoming difficult for mobile service providers. Global mobile devices and connections grew to 8.0 billion in 2016 from 7.6 billion in 2015, according to the Cisco Visual Networking Index. With the increase in the number of mobile devices with advanced computing and multimedia capabilities, the demand for more capable and intelligent networks is also increasing at the same time. Connectivity technologies have evolved from 2G to 3 G, 3.5G, and 4G, and this development is likely to continue in the coming years as well, leading to 4.5G (LTE/LTE-A/LTE-AP) and 5G commercialization by the end of 2019. The need for bandwidth management is also increasing with the evolution of mobile connectivity technologies. Relying on macro-cellular networks alone would not make it possible for service providers to satisfy customer requirements.

Demand for Wireless Connectivity at Airports, Train Stations

The demand for distributed antenna systems has been sparked by an increase in passengers at airports and train stations. Another key driver for the growth of the distributed antenna system (DAS) market is the growing demand for seamless mobile connectivity. Manufacturers are increasing their manufacturing capacity in order to meet passenger requirements at airports and train stations. The demand for distributed antenna systems is catalyzing the growing need for wireless connectivity to address voice, data, and text messaging. In addition, in the developed economies of North America, robust cellular coverage is becoming increasingly common. Moreover, as the region is expected to grow exponentially during the forecast period, this trend is gaining popularity in Asia Pacific countries. In ensuring public safety, solid cellular coverage plays a vital role.

Distributed Antenna System Market Challenges

Complexities involved in the installation of distributed antenna systems

It's a very complex process to install iDAS or oDAS. As a pre-requisite for the installation of distributed antenna system, many government regulations along with infrastructural factors such as the area and location of the facilities must be considered. Currently, typical distributed antenna system contracts usually cost $5-10 million for hardware only (hubs, remote radio heads, nodes, and antennas, among others). Active and passive distributed antenna system installation depends on factors such as the cost of the systems to be installed, the area of the facility where the system needs to be installed, the type of cabling involved (coaxial or fibre optic), and the system's power requirements.

Distributed Antenna System Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in Distributed Antenna System Market. Distributed Antenna System Market is expected to be dominated by major companies such as Anixter Inc., CommScope, Corning Inc, Comba Telecom System, American Tower Corporation, Cobham Wireless, TESSCO Technologies Inc., Bird Technologies, SOLiD, Others

Acquisitions/Technology Launches

In Nov 2019, At the newly opened 972,000 square-foot Louis Armstrong New Orleans International Airport (MSY), Boingo introduced neutral host cellular DAS and wi-fi networks.

In Feb 2018, CommScope is working with Nokia to develop passive-active antenna solutions that allow operators around the world to optimize the use of tower space, increase the capacity of the cell site, and lay the groundwork for a future ready for 5G.

Key Takeaways

Some of the advantages driving the demand for distributed antenna systems are better defined coverage, fewer coverage holes, same coverage using lower overall power, as well as individual antennas that do not need to be as high as a single antenna for equivalent coverage.

The public safety DAS application is projected to grow to the highest CAGR during the forecast period. These systems provide wireless service through an antenna system, in particular to buildings, to ensure that emergency responders can maintain wireless communication within a building structure and on-the-job in emergency situations.

The market in APAC is expected to grow owing to the growing number of smartphone users, rising penetration of high-speed internet connectivity, and rapid urbanization.

The growing demand for seamless mobile connectivity is the key driver for the growth of the Distributed Antenna System (DAS) market. In order to meet passenger requirements at airports and train stations, manufacturers are increasing their manufacturing capacity.

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