Albany, NY -- (SBWIRE) -- 03/23/2015 -- The global femtocells market was worth US$420 million in 2012 and will be worth US$4,706 million by 2019. The global femtocells market will hold its aggressive growth with a CAGR of 37.1% during the forecast period of 2013 to 2019.

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The two primary drivers behind the growth of the femtocells market include escalating indoor use of mobile phones and saturating telecommunications markets in developed countries.Geographically, North America dominated the femtocells market in 2012, which can be attributed to the high adoption of and accelerating demand for this technology from the enterprise and residential sectors. Europe follows North America in terms of market share. Europe is also promoting the development of femtocell deployment; commitments from mobile operators will contribute to the growth of femtocells market.

Femtocells have grown from a test product to a mainstream market in a short duration, gaining particularly after 2007, when network operators first adopted femtocells equipment. In many developed countries of Western Europe, Korea and Japan, etc., the broadband and mobile penetration is very high. These regions are the preferred markets for femtocells vendors in terms of increased market growth and higher revenues. This can be attributed to the fact that femtocells can be comfortably installed at places where broadband facility already exists.

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Femtocells utilize broadband to connect to the cellular operator. They improve transmission of both data and voice, which has increased their popularity among mobile subscribers. Femtocells function as standalone or can be integrated with other networks such as Wi-Fi or macro cell. Furthermore, the high adoption of femtocells in the residential segment in combination with growing demand from the enterprise segment is fueling the market. Installing femtocells allows a consumer seamless communication through excellent indoor coverage at reduced charges.

Even though femtocells offer a great many advantages, one major factor suppressing the growth of this market is the easy availability of substitutes. These substitutes are available in the market in the form of picocells and Wi-Fi. These devices are considerably superior to femtocells, because of which femtocells are facing tough competition. The high cost associated with femtocells is also a market growth inhibitor.

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According to a TMR lead analyst, "Even though femtocells have many advantages, the high cost of the equipment is a major concern among market players. Developing countries such as Taiwan will penetrate the market in the future, which will bring down the cost of femtocells equipment."

The global femtocells market is segmented majorly according to form (standalone and integrated), technology (4G, 3G, and 2G), application (residential, public, enterprise), and geography (North America, RoW, Asia Pacific, and Europe). However, most of the key players in the market are focusing on developing LTE femtocell technology. Some of the top corporations leading the market include Airvana LLC, Netgear, Inc., Cisco Systems, Alcatel-Lucent, Ericcson, NEC Corporation, Gemtek Technology Co. Ltd., Samsung Electronics, and Nokia Siemens Networks.

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