Global Fixed Mobile Convergence Market 2022-2028

Global Fixed Mobile Convergence Market 2022-2028

Global Fixed Mobile Convergence Market Size, Share, & Analysis by Component (Service and Infrastructure), and by End-User (Enterprise and Home Users) Forecast Period (2022-2028)

Fixed Mobile Convergence (FMC), also known as Fixed Wireless Access (FWA), is a hi-tech trend that provides a seamless connection between fixed and mobile telecommunications networks. The primary objective of FMC is to optimize communication of all data, voice, and video communications, among end-users, irrespective of their locations or devices. The fixed wireless trend is becoming a significant choice for connecting rural and untapped markets; however, it is also providing service providers with vital opportunities to expand their broadband footprint utilizing both 3GPP-based and non-3GPP-based technologies. The expansion of 5G New Radio (NR) networks is also creating enormous opportunities for the FMC industry as it is used to provide both fixed wireless and mobile broadband. 5G’s extensive network infrastructure and greater spectral efficiency improve the economics and technical viability of FWA deployments and support the new deployment and opportunities for generating revenues in the FMC industry.

Segmental Outlook

The FMC service market held the highest market share of 85.0% in 2021 and accounted for $52.2 billion in 2021 and is estimated to reach $194.1 billion by 2028. The market is growing at the highest CAGR of 20.0% during the forecast period. The market is primarily driven by the rising demand for 5G fixed wireless access networks. The FMC infrastructure market held the highest market share of 15.0% accounting for $9.2 billion in 2021 which is anticipated to grow at a CAGR of 8.9% during the forecast period. The operators are leveraging existing mobile and fixed networks to provide converged service. Additional infrastructure such as networking devices, cables, customer premises equipment (CPE), and others.

The home user segment held the highest market share of 88.0% accounting for $53.0 billion in 2021 which is anticipated to grow at the highest CAGR of 19.3% during the forecast period. Home user bandwidth demands are increasing owing to the rising adoption of video streaming, cloud applications, gaming, and security cameras. The need for bandwidth will continue to grow significantly owing to the rising adoption of IoT, 4K/8K UltraHD TV, virtual and AR (augmented reality), smart buildings, and grids. The enterprise segment held the least market share of 12.0% and accounted for $7.4 billion in 2021 and is estimated to reach $18.7 billion by 2028. There is a huge demand for ultra-high-speed FWA services in enterprise applications as fiber is prohibitively expensive to lay and maintain – due to remoteness, and inaccessibility, among other factors. Owing to this, the market is growing significantly at a CAGR of 13.6% during the forecast period.

Regional Outlook

Europe has the highest contribution in the FMC market with a share of 45.7% and is anticipated to reach $86.6 billion in 2028 from $28.0 billion in 2021. The market in Europe is growing at a CAGR of 16.9% during the forecast period. The market is driven by the proliferation of telecommunication companies such as Orange SA, A1 Telekom Austria Group, Deutsche Telekom AG, Vodafone PLC, and British Telecom, among others. The market in North America held the second-highest share of 27.5% and accounted for $16.9 billion in 2021. The market is anticipated to reach $58.4 billion by 2028, growing at a CAGR of 18.8% during the forecast period. The Asia-Pacific market is growing at the highest CAGR of 23.1% during the forecast period. The market value was valued at $12.8 billion in 2021 and is projected to reach $57.2 billion in 2028. The significant contribution of the fastest growing economies such as China and India and growing industrialization is driving the market growth in the region.

China held the highest market share in the region. In China, three big-name peers including China Mobile, China Unicom, and China Telecom are offering 5G service to customers. Further, the cohesive government policies for the convergence of telecom, broadcasting, and internet businesses is also driving growth in China. In January 2010, the People's Republic of China government announced the Three-Network-Convergence Policy, to accelerate the advancement of the convergence of television and radio broadcasting, telecommunications, and internet access businesses to realize interconnection and resource-sharing between the three networks and further develop the provision of voice, data, television, and other services.

Key Players Outlook

Verizon Communication, AT&T, Comcast Corp. (Xfinity), Telefonaktiebolaget LM Ericsson, Orange SA, A1 Telekom Austria Group, Deutsche Telekom AG, British Telecom, China Mobile, China Unicom, SK Telecom, and China Telecom are the key players contributing to the market. Vodafone Spain, Movistar, Ziggo, and Proximus are some of the highest growth-driving players in the market. The market players have adopted several strategies, such as mergers and acquisitions, product launches, geographical expansions, partnerships, and collaborations to stay competitive. Geographical expansion and acquisition are the most adopted strategies by the market players. Through these strategies, the companies have expanded their geographical presence in different regions and hence, strengthened their customer base. For instance, in November 2022, Orange was the first on the African continent to offer 5G services. Orange Botswana launched 5G with coverage in greater Gaborone and Francistown, offering 30% of the population coverage. Orange Botswana has debuted new 5G FWA and mobile data bundles aimed at residential customers and small and medium enterprises.