Distributed Antenna Systems (DAS) Market Trends

Growth Drivers

• Expansion of 5G Networks and mobile data demand: A significant factor contributing to the market’s sustained expansion is the proliferation of 5G networks. Due to 5G’s expansion across the world, latency has reduced, leading to more stable connections. The improved speed has additionally impacted consumer preferences, as the end user is not merely satisfied with low connectivity speeds and proactively demands ultra-fast connectivity solutions, creating an extremely competitive market. According to India's Press Information Bureau, the global 5G revolution is gaining momentum, and by 2030, 5G is projected to handle 80% of all mobile data traffic worldwide, showing its major role in shaping the future of internet connectivity. A wider consumer base with increasing disposable income is set to offer high-earning opportunities for key manufacturers in the years ahead.

• Smart city growth and the rising urbanization rates: Smart cities have become the backbone of a country’s development goals, while large-scale urbanization has ensured a sustained demand for improved connectivity solutions. Economies in APAC and Latin America are experiencing heightened urbanization rates, and companies are striving to keep pace with the ultra-fast connectivity demands. The question arises as to why DAS is vital for smart cities; its significance lies in integration with urban appliances such as smart lighting to public management systems such as intelligent transport systems.

• Proliferation of smartphone usage and BYOD trends: Current trends indicate that smartphones have become an integral part of daily routine. Moreover, a new trend has proliferated in workplaces, i.e., the bring-your-own-device (BYOD) trend. This creates a data deluge where DAS steps in to handle it seamlessly. The use of smartphones with high data usage apps is also gaining momentum. To measure the deluge of data, the Groupe Spéciale Mobile Association (GSMA) released a report in 2023 noting that more than 53% of the global population, which accounts for over 4.1 billion people, uses smartphones. The report also noted that mobile internet usage stood at 57% worldwide, owing to increased connectivity programs.

Challenges

• Stringent data protection and privacy regulations: The DAS market is plagued with challenges for market entrants as well as established players. Strict data privacy laws, such as the General Data Protection Regulation (GDPR) in Europe, have imposed major constraints on how the data is handled and transferred, causing barriers for the adoption of DAS. Many companies faced major compliance issues with the GDPR whilst expanding DAS solutions across Europe.

• Spectrum Licensing barriers: DAS deployments are impaired by licensing hurdles. Moreover, allocations in regions with crowded or limited spectrum can pose challenges. An example of the challenge is the delay faced by some key players in Brazil, owing to restrictive spectrum licensing policies, which led to a delay of 9 months and a significant increase in the costs of installation. The challenge is further exacerbated in emerging markets such as the Asia Pacific and Latin America, where spectrum availability is likely to be limited.