Small cell deployments forecast to rise 9.1% by 2031

Small Cell Forum has published its Market Forecast Report 2026, pointing to stronger expectations for small cell deployments worldwide.

Based on analysis of 103 small cell deployers, the industry body forecasts a compound annual growth rate of 9.1% in deployments and upgrades between 2024 and 2031. It expects annual shipments to reach 9.8 million units in 2031, with cumulative shipments of 67.2 million over the period.

Those figures are slightly ahead of the group's previous outlook. Actual deployments in 2025 were about 60,000 radio units above forecast, prompting upward revisions to annual projections from 2026 onwards.

Market outlook

The report depicts a market still under pressure from broader economic and geopolitical conditions, but showing firmer confidence than in recent years. Operators and infrastructure investors are adapting more effectively, while spending on resilient and critical infrastructure is supporting demand.

Prabhakar Chitrapu, Chair of SCF, linked that trend to a broader shift in investment priorities.

"This year's forecast reflects an industry that has become adept at managing economic and geopolitical uncertainty. Investment is increasingly focused on resilient infrastructure that can support multiple services and revenue models, strengthening the case for small cells across enterprise, urban and critical networks," said Prabhakar Chitrapu, Chair of SCF.

5G focus

A central finding is the growing role of 5G Standalone in small cell networks. The share of deployments using 5G Standalone is forecast to rise from 11% in 2024 to 89% in 2031.

That suggests the next phase of investment will remain focused on 5G rather than shift to 6G in the near term. Meaningful commercial 6G deployment is not expected until after 2031, leaving operators focused on 5G Standalone, virtualised networks and automation.

Enterprise and in-building deployments are expected to play a leading role in that transition. In those settings, small cells can often be introduced with less reliance on legacy radio networks than public macro networks, making them a practical route to newer architectures.

AI influence

The study also highlights artificial intelligence as both a source of traffic demand and a feature of network operations. On the demand side, local inference and enterprise applications are increasing interest in edge-integrated small cells.

Within networks, RAN AI has moved ahead of Open RAN as the technology deployers most want to see mature, although both remain on industry roadmaps. By the end of 2027, 19% of newly deployed small cells are forecast to include AI-based control at the operations support system or RAN Intelligent Controller layers.

By 2031, that share is expected to reach 77% of new small cells. This indicates that AI is moving from a limited operational tool to a much broader role in how small cell networks are managed.

Indoor and outdoor

Enterprise in-building networks are expected to remain the largest deployment environment through the forecast period, accounting for 54% of cumulative deployments between 2024 and 2031.

Outdoor networks, however, are taking a larger share of the outlook. Public outdoor small cells are forecast to account for about 25% of cumulative deployments over the same period, and this is the segment where the group made the largest upward adjustment from its previous forecast.

Simon Fletcher, Chief Strategy Officer of SCF, said that change reflected progress in overcoming rollout barriers.

"Enterprise and in-building networks remain central to the small cell market, but the outlook is broadening. Progress in reducing practical deployment barriers is improving the case for outdoor networks, particularly where resilient, high-quality connectivity is required across transport systems, cities and industrial environments. SCF's work program reflects these trends, with new initiatives launched in the past 12 months focused on Local Authority Connectivity and enterprise and private networks," said Simon Fletcher, Chief Strategy Officer of SCF.

The report also points to the growing role of hybrid public and private network models. These are forecast to represent 20% of enterprise small cells by 2031, up from 11% in 2024, as businesses seek a mix of dedicated connectivity and broader public network access.

Funding models

Neutral hosts are also expected to remain significant in the market's funding structure, accounting for around 28% of annual deployments in the later years of the outlook.

By 2031, neutral hosts are expected to represent 29% of indoor small cells and 46% of outdoor small cells. Those shares suggest a wider mix of deployers and investors will continue to shape the market as operators look to spread costs across more parties.

The report's overall message is that growth is returning, but in a market still defined by selective investment, enterprise demand and a gradual shift towards outdoor coverage. Annual shipments are expected to reach 9.8 million units in 2031.