FWA Forecast to Create Revenue of $67 Billion by 2027

New research from CCS Insight sheds light on the fixed wireless access market, an emerging but crucial technology for mobile network operators. The technology helps to expand network coverage, bridging connectivity gaps in rural or semi-rural areas where laying fiber infrastructure is challenging.

The analyst firm’s report estimates that the number of fixed wireless access connections worldwide grew to 90 million in 2023, up from 69 million in 2022. These connections are forecast to generate $29.5 billion in revenue for operators in 2023. The report indicates potential for further growth in this market, with the number of connections expected to rise to 216 million by the end of 2027.

This growth has been significantly accelerated by advancements in 5G technology in Asia and Africa. For emerging economies with a lack of existing infrastructure, high mobile Internet penetration, and difficult terrain — such as India, the Philippines, and Indonesia — fixed wireless access is quickly becoming an accessible first broadband connection.

“Our extensive research indicates that 5G fixed wireless access isn’t just a complementary technology but a primary connectivity solution in many emerging markets”, commented Vaishali Purohit, Analyst at CCS Insight. “Countries like India are rapidly adopting fixed wireless access as their main way of getting online, which presents a huge opportunity for telecom operators and device manufacturers. We forecast that two-thirds of all fixed wireless access subscribers will be based in Asia and Africa by 2027”.

This opportunity is enhanced by some device and chipset manufacturers proposing reduced capability 5G, or RedCap 5G, for use with fixed wireless access. The justification is that it can bring down the cost of 5G equipment and cater to value-focused offerings for fixed wireless access.

“With 75 million LTE fixed wireless access connections globally in 2023, RedCap 5G offers a promising and cost-effective path for migrating a massive number of users from LTE to 5G connectivity in regions with poor fixed broadband connection,” added Luke Pearce, Senior Analyst at CCS Insight.

However, CCS Insight states that fixed wireless access isn’t just an opportunity for emerging markets. For advanced economies, where fiber coverage and penetration are high, fixed wireless access is used to support last-mile connectivity or as an alternative simple and fast deployment model. Furthermore, operators using the latest network architecture for standalone 5G and millimeter-wave frequencies, like many in the US, can offer new 5G fixed wireless access packages with consistent broadband speeds up to and above 1 Gbps to compete with fiber.

Scaling fixed wireless access services to meet increasing customer needs without compromising quality is a constant challenge for operators launching or expanding their offerings. Convincing potential customers that fixed wireless access can provide the same quality of experience as fixed broadband is also difficult, with operators experimenting with minimum speed guarantees and 30-day money-back programs. Despite these hurdles, the growth potential is significant. CCS Insight forecasts that, by 2027, the revenue generated from fixed wireless access services could rise to a total of $67 billion, more than doubling the revenue forecast for 2023.