In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
A Distributed Antenna System (DAS) uses a bundled installation of antennas to enhance network coverage in areas with weak to no signals. Such systems are usually implemented in areas with poor connectivity to existing towers, such as an underground system in large facilities or an underground public transport system. A DAS installation consists of a network of separately installed antenna nodes that are connected to a common source through fiber or coaxial cable. The power is split among several antennas to cover the same area. It increases the reliability and reduces the power required by a single antenna. This kind of installation helps in providing additional cellular coverage. Growing popularity of mobile devices and willingness among governmental bodies to connect every nook and corner of their region is primarily driving the growth of the industry.
The global distributed antenna system (DAS) market is expected to expand at a CAGR of 10.7% during the forecast period i.e. 2019 to 2027, owing to high adoption of distributed antenna system and tremendous popularity of mobile devices that require wireless connectivity within a geographical area. High growth rate of the DAS industry can be attributed to the increased government focus towards a better connectivity in their respective regions.
The market is segmented by technology, application and ownership. On the basis of application, the market is segmented into public venues, hospitality, airports & transportation, healthcare, education sector & corporate offices, industrial, other, out of which, the public venues segment is expected to have leading shares during the forecast period owing to rise in conferences, seminars, workshops and other commercial construction activities where constant data integration and high network signals are required for proper work. Additionally, the healthcare sector is estimated to witness significant growth on the back of increasing IT integration with the healthcare facilities to improve efficiency of operations and enhance productivity.
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Expanding wireless data usage has prompted various difficulties associated with coverage and carrier capacity. To overcome this, cellular service providers are focusing on providing cost-effective and advanced services to subscribers using data-intensive applications, such as video and audio streaming. This is expected to drive the deployment of DAS. Additionally, on account of high data usage, small-cell networks have become essential for providing the requisite capacity and coverage. Service providers are opting for distributed antenna systems to create the small cells they need as part of their outdoor network plans.
Increasing use of wireless data is driven on the back of growing technological advancements and development of newer and faster mobile networks, such as 4G and 5G. These networks have become affordable owing to their wide usage coupled with increased availability of smartphones at affordable prices. Moreover, since the switching cost from one service provider to another is low, mobile network operators have to be extra cautious of the penetration and quality of their network. Increased emphasis on improving network performance has propelled service providers to opt for solutions such as DAS, to ensure round the clock availability of their network, thereby driving the market growth.
High initial cost of distributed antenna systems and upgrade issues are the major concerns holding back the market growth. This is primarily due to the high cost of implementation owing to change in equipment that is costly. Additionally, high labor cost associated with the installation of the distributed antenna system is also acting as a barrier to the market growth.
Our-in depth analysis of the global distributed antenna system market includes the following segments:
On the basis of regional platform, the global distributed antenna system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America captured more than 30% of the overall market share in 2018 and is further expected to expand at a considerable CAGR over the forecast period. This growth can be attributed to the rising trend of Internet of Things (IoT) along with the development of smart cities. Additionally, increasing use of smartphones and ever-growing wireless traffic are some of the notable factors that are expected to drive the growth of the market in North America region.
Meanwhile, the Asia Pacific DAS market is expected to grow significantly over the forecast period. Increasing infrastructural growth in India and China can be accredited to the market growth in this region. Additionally, rising deployment of 4G/LTE connections along with substantial presence of DAS providers is further contributing to the market growth. On the other hand, the growth of the market in Europe is majorly driven by expanding public venues, healthcare, and industrial sector in the region.
Global distributed antenna system market is further classified on the basis of region as follows: