Allied Market Research Reports Global LTE Revenue to Reach $997 Billion by 2020

Research group Allied Market Research reported last week that it expects the global LTE market to reach $997 billion by 2020. Citing data from its “LTE Market (TDD, FDD, LTE Advance) - Global Opportunity Analysis and Forecast - 2012-2020” study, the organization reveals that the market may experience a compounded annual growth rate (CAGR) of 58.2 percent during the 2013 - 2020 period with much of that growth taking place in the Asia Pacific region.

The announcement says that, by 2020, Asia Pacific will hold approximately 40 percent of the overall market and that it will need to grow much more rapidly than other parts of the globe to reach that mark. Currently, the region accounts for $2.8 billion. With AMR expecting that it will reach $390 billion by the end of the projection period, Asia Pacific must show a CAGR of 71.5 percent in the seven-year span. The other regions addressed in the study include North America, Europe, and Rest of the World (RoW).

An overview of the study on the AMR website says that the global population is demanding higher data rates and greater spectral efficiency. Those two factors are reportedly what are currently affecting market growth the most. People want their data to arrive more quickly and be more accessible.

At the time being, the LTE FDD market is what carries the bulk of the overall market and therefore generates the most revenue. The aforementioned report suggests, though, that LTE TDD will disrupt the status quo and take over as the highest generator of revenue by 2020. This is expected to occur mostly because concerned parties are finding ways to create cheaper TDD solutions. But even the most cost-effective TDD solutions may not hold the lion's share of the market for long. LTE Advance is biting at the heels of the overall market, and due to its ability to provide users with higher bitrates than the other standards, AMR expects that it will experience the highest rate of growth between 2013 and 2020.

AMR also addressed the types of LTE applications, differences in geographic region, business competition, and high level analysis in its study. The bulk of the research should help businesses analyze possible changes in the market and plan their global strategies accordingly.