Mobile data traffic running over 5G networks will surge at a 63% compound annual growth rate through 2026, which will require operators to hasten network densification plans using small cells, according to a recent report from ABI Research.

The report noted that operators have so far been able to deal with growing 5G network traffic demands by bolstering their spectrum holdings and boosting their macro-cellular radio access network (RAN) infrastructure using new technologies like massive multiple-input, multiple-output (MIMO) antenna technologies.

“5G small cells complement macro cells, boosting network capacity and extending coverage in dense areas where signals are weak or unavailable,” explained ABI Research analyst Fei Liu. “They also allow network operators to derive more value from their existing spectrums by exploiting them more efficiently.”

However, that boost to current RAN deployments won’t be enough to deal with the 1,676 exabytes of predicted 5G network data traffic by 2026. Liu pointed to the current infusion network capacity from C-Band spectrum “should run out without additional spectrum or small cell densification.”

ABI Research forecasts “mass 5G small cell deployments” will begin in 2025, and that there will be 13 million 5G outdoor small cells deployed by 2027, overtaking 4G LTE small cell deployments by 2028. This need will also force small cell RAN vendors to deepen support.

“Compared to the previous generation small cells, 5G small cells face more challenges in design and performance,” Liu wrote. “5G small cells need to be smaller and lighter while supporting larger bandwidths such as 100 megahertz and 200 megahertz. With 5G, there is a wider range of deployment scenarios, forcing vendors to provide comprehensive solutions to support every need.”

A recent Dell’Oro Group report noted traditional RAN vendors Huawei, Ericsson, Nokia, ZTE, and Samsung dominated the small cell RAN market during the first quarter of the year. Those vendors helped boost small cell RAN equipment revenues by 15% year over year compared to the same quarter in 2021, which Dell’Oro said was faster than the tepid pace posted by the overall RAN market.

ABI Research concluded that costs and logistics will require small cell deployments to rely on macro-RAN deployments.

“5G small cells make use of the backhaul established for macro cells, so mobile network operators should start deploying 5G small cells at locations with backhaul already established,” Liu stated. “5G small cells can co-exist with macro cells, and self-organizing networks help minimize risks from interferences between cells. Alternatively, mobile network operators should deploy different frequency bands on small and macro cells.”