Where should suppliers look for operator spending growth in optimization technologies?
Optimizing the mobile network is becoming a $3.5 billion business a year by 2020 from $1 billion today, broken into a series of related businesses, including RF, Network Planning, Network monitoring, SON, PCRF web optimization, video, VoLTE and analytics. It has become a multi-tool set shopfront creating many new cellular players.
Already APAC is the largest spending region and its spend is set to more than double by 2020, but Europe is set to grow faster with spending rising from $218 million today to more than $674 million come 2020, and Central and Latin American growth outstripping that by CAGR but from a negligible spend today.
To keep costs low, operators need to squeeze every last bit of capacity and performance from their existing networks before having to invest in additional equipment. And to deliver that quality of experience (QoE), even more important than raw pricing, in order to reduce churn in many markets, they need to ensure coverage is ubiquitous and speeds are consistent. In a 4G world consumers will hate surprises.
Use cases are also diversifying, shifting to the Internet of Things, leading to more parameters which need constant monitoring to ensure cost-effective service delivery.
North America, one of the largest spending regions on optimization, which was very early to acquire tools, will initially grow its spend, but by 2020 actually shrink from where it is today.
These details are from our report Rethink Technology Research Services: RAN optimization deployments and key trends 2014-2020, pub,ished late last year.