The global self organizing network and optimization software market is expected to witness significant growth over the forecast period owing to the rapidly increasing cellular traffic. Growing number of mobile phone users are further expected to propel market growth. The inability of traditional systems to manage network complexities coupled with increasing 3G and LTE network complexities may further fuel growth in the self organizing network (SON) and optimization software market. Increasing operational expenditure for LTE network is anticipated to propel market growth. Further, growing adoption of SON and optimization software in 3G and 2G networks by service providers is projected to drive market growth over the forecast period.
Self-organizing network (SON) facilitates the automation of network tasks including operating, optimizing, and configuring network traffic. Further, increasing benefits of SON such as enhanced user experience may drive market growth. Reducing operation cost owing to adoption of SON is anticipated to fuel market demand. Additionally, SONs provide efficient transmission under adverse congested traffic conditions. SONs and optimization software provide capacity based optimization or load balancing resulting in an optimal distribution of network traffic across multiple resources. Further SONs and optimization software account for improved network quality and provide self-healing capabilities to networks.
SONs and optimization software reduce the effects of changes in propagation characteristics, traffic patterns, and network deployments. Changes in propagation characteristics could arise from the construction and destruction of buildings and other public infrastructure. Further, changes in user concentration in specific areas, surging network traffic owing to festive seasons may lead to change in traffic patterns. Changes in deployment are attributable to change in base station location and additional base station deployments. Further increasing network heterogeneity and demand for cross-network capabilities is anticipated to pose a challenge to the SON and optimization software market. Challenges related to full automation of tasks such as self-optimization, self-configuration and self-healing may further restrain market growth.
SONs are broadly classified into Centralized SONs (C-SON) and Distributed SONs (D-SONs). C-SONs provide a centralized architecture wherein the optimization algorithms are built either into the network management system or the central server that manages all other edge nodes. C-SONs are further classified into manual open loop and automated closed-loop C-SONs. D-SON provides integration of algorithms in individual edge nodes which in turn exchange information directly with one another locally. C-SONs provide rapid implementation capabilities whereas D-SONs provide dynamic network adaptability.
North America owing to developed infrastructure is anticipated to contribute to the SON and optimization software market. Asia Pacific countries such as India and China are expected to contribute to market growth owing to increasing number of mobile phone users over the next few years. Europe is also expected to account for a significant market share over the forecast period.
Key market contributors in the self-organizing network and optimization software market include Cisco Systems Inc. (U.S.), Amdocs Ltd. (U.S.), Ericsson (Sweden), Nokia Solutions and Networks (Finland), Reverb Networks (U.S.), Huawei Technologies Co., Ltd. (China), Cellwize Wireless Technologies Pte. Ltd. (Singapore) and Eden Rock Communications (U.S.). In May 2015, Nokia announced its plans to acquire Eden Rock, the creator of Eden-NET, a multivendor C-SON solution. Eden-NET coupled with Nokia Networks is expected to drive measurable customer experience improvements, reduce operating expenses, and further contribute to increasing overall profitability for the mobile operators. In Feb 2014, Amdocs announced the launch of its SON solutions to efficiently manage increasingly complex heterogeneous networks (HetNets). Amdocs SON supports 2G, 3G services, and LTE to optimize existing network assets usage. Ericson with its unique SON optimization manager solutions offering multi-vendor and multi-technology modules to mediate centralized access to networks is expected to account for a significant market share over the forecast period. In April 2015, Reverb Networks received a patent for its multi-mode SON solutions to control multi-mode radio access networks. Reverb Technology holds 10 patents related to SON technology solutions. In May 2015, Reverb Networks launched InteliSON 4.0 designed with special features to aid operations in fast-growing regions such as Middle East, Africa, and Asia.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.