MULTIPLE INPUT MULTIPLE OUTPUT (MIMO) MARKET ANALYSIS

Market Challenges And Opportunities

Multiple Input Multiple Output (MIMO) Market Drivers:

• Increasing Demand for High-Speed Data Services: The rising demand for seamless connectivity and high-speed data services is driving the adoption of MIMO technology. MIMO offers higher bandwidth and throughput to support data-intensive applications. According to Cisco forecasts, Global IP traffic grew 26% to 5.4 zettabytes in operation by 2021. Much of this traffic is now mobile, as people remain connected even when on the go.
• Growth of Mobile Devices and Smartphone Penetration: With the ever-increasing number of mobile device users and the higher data throughput required for advanced smartphone features, MIMO is essential for meeting these connectivity demands. According to statistics from the International Telecommunication Union, global mobile data traffic grew by 63% in 2021, reaching 48.5 exabyte’s per month, and this trend is projected to continue growing exponentially.
• Advancements in Wireless Communication Standards: The transition to new wireless communication standards such as Wi-Fi 6 (802.11ax) and the deployment of 5G networks both leverage MIMO technology extensively for improved capacity and efficiency. As mobile data consumption continues to rise exponentially with more users and applications, wireless network capacity must keep up with this demand.  By 2025, 5G is projected to support about a quarter of the world's mobile data traffic.
• Technological Advancements in MIMO: Advancements such as multi-user MIMO, massive MIMO, and 3D MIMO are expanding the application scope of the technology. These are expected to improve network efficiencies in the coming years. According to projections by the UN International Telecommunication Union, global mobile data traffic is expected to grow at a compound annual growth rate of over 25% from 2020 to 2023.
• Increased Network Traffic: The exponential growth in global internet traffic, including both personal and business data consumption, has compelled network providers to adopt MIMO technology to scale their network capacity and manage the traffic effectively. According to data by the International Telecommunications Union, total internet traffic was estimated to be around 3.7 zettabytes (trillion gigabytes) per year in 2021. This volume is projected to increase almost threefold to around 11.5 zettabytes per year by 2023.

Multiple Input Multiple Output (MIMO) Market Opportunities:

• Deployment of 5G network: As telecom operators continue to deploy 5G networks, there is significant opportunity for MIMO technologies, which are integral to 5G standards. Massive MIMO, in particular, is expected to be widely adopted in 5G networks, offering opportunities for equipment manufacturers and service providers. As more countries launch 5G, the demand for MIMO will surge. According to projections by the International Telecommunication Union, the percentage of people with access to 5G networks will rise from less than 5% currently to over 55% by 2023.
• Smart City Projects to increase stability in communication: With the global push towards smart cities, MIMO can play a vital role in providing the necessary infrastructure for IoT connectivity, ensuring stable and efficient communication for smart grids, transportation, and public services. Looking ahead, a recent report by the UN Department of Economic and Social Affairs estimated that 68% of the world's population will live in urban areas by 2050.
• Adoption Wi-Fi 6: The new Wi-Fi 6 (802.11ax) standard employs MIMO technology, creating opportunities for MIMO implementation in consumer electronics, enterprise, and public Wi-Fi infrastructure to accommodate more users and provide better service in dense environments. We are already seeing tremendous enthusiasm for Wi-Fi 6 globally as shipments of Wi-Fi 6 compatible devices explode in 2021. According to data from the United Nations Conference on Trade and Development, worldwide smartphone shipments grew by 7% year-over-year in 2021, with Wi-Fi 6 supported models accounting for over 20% of total shipments.
• Automotive Connectivity to develop and improve road safety: The automotive sector presents opportunities for MIMO in enabling reliable vehicle-to-everything (V2X) communications, which is critical for the development of autonomous vehicles and improving road safety and traffic efficiency. According to the National Highway Traffic Safety Administration (NHTSA), road accidents led to 38,824 deaths in the U.S. In 2020. Timely sharing of location, motion, and other rich sensory data in a decentralized manner through global MIMO connectivity can significantly reduce such accidents.

Multiple Input Multiple Output (MIMO) Market Restraints:

• High Implementation Costs: Upgrading existing infrastructure to support MIMO technology comes with high costs. This includes not only the physical hardware but also software and service expenses, which can restrain market growth, especially in cost-sensitive regions. As demand for MIMO technology grows, economies of scale come into play. Larger production volumes can reduce the cost per unit for components and systems, making it more affordable for companies to adopt MIMO technology. Forming partnerships with technology providers can help in reducing costs through shared investments and expertise.
• Competition from Alternative Technologies: MIMO technology may encounter competition from other emerging wireless technologies that could potentially offer similar or better benefits. Investing in research and development can lead to advancements in MIMO technology, making it more competitive compared to alternatives. This could include work on minimizing latency, enhancing spectral efficiency, or integrating AI to optimize network performance. The full benefits of MIMO technology may not be realized unless consumer devices are also equipped with compatible MIMO technology, which may take time to become widespread.
• Energy Consumption: Advanced MIMO systems, particularly massive MIMO, can require more power to operate the large number of antennas, which can increase operational costs and concern over energy consumption. Incorporating advanced power management techniques that can dynamically adjust power consumption based on demand, usage, and channel conditions can help lower energy use in MIMO systems. While MIMO technology offers considerable benefits, it also presents challenges in terms of energy consumption, which can counterbalance market growth.
• Global and Regional Economic Factors: Uncertainties in global and regional economies can lead to reduced spending on information and communication technology infrastructure, thus restraining market growth. Implementing business models that can adapt to changing economic conditions, such as offering MIMO technology as a service or leasing equipment, can make it easier for customers to adopt the technology without large capital investments. The willingness and ability to adopt MIMO technologies can differ vastly between developed and developing regions due to disparities in economic resources, which affects the overall global market expansion.