Small Cell Forum (SCF) has published its Market Forecast Report 2026, revealing a return to cautious optimism across the small cell market as 5G Standalone gains momentum, AI-driven services, RAN AI and network automation move up the deployment agenda, and confidence grows in public outdoor networks. The report finds that operators and infrastructure investors are adapting more effectively to continued economic and geopolitical pressures, while renewed emphasis on resilient and critical infrastructure is supporting investment.
Based on detailed analysis and survey data from 103 small cell deployers worldwide, the report forecasts that small cell deployments and upgrades will grow at a compound annual growth rate of 9.1% between 2024 and 2031. Annual shipments are expected to reach 9.8 million units in 2031, with cumulative shipments totaling 67.2 million units, almost two million ahead of the equivalent projection in last year’s forecast.
Prabhakar Chitrapu, Chair of SCF, commented: “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.”
Actual small cell deployments in 2025 were approximately 60,000 radio units higher than forecast, providing an indication of improved market confidence. SCF has consequently revised its forecasts upwards for each year from 2026.
5G Standalone gains momentum as focus shifts to commercial deployment
5G Standalone is beginning to gain significant momentum in small cell networks, rising from 11% of deployments in 2024 to 89% in 2031. With meaningful commercial 6G deployment not expected until after 2031, near-term investment remains focused on 5G Standalone, virtualised networks and automation.
Small cells, particularly those deployed in enterprise and in-building environments, are well placed to lead this transition because they can often be introduced with less dependence on legacy radio networks than large-scale public macro deployments.
AI emerges as both a market driver and network priority
AI is influencing the market both as a source of demand and as a network technology. Demand for local inference and enterprise applications is renewing interest in Edge-integrated small cells, while RAN AI has overtaken Open RAN as the technology deployers are most eager to see mature, although both remain firmly on industry roadmaps.
By the end of 2027, 19% of newly deployed small cells are forecast to feature AI-based control at the operations support system or RAN Intelligent Controller layers. By 2031, 77% of new small cells are expected to be controlled using AI.
Enterprise indoor remains dominant and outdoor deployment gains ground
Enterprise in-building networks will remain the largest small cell deployment environment, accounting for 54% of cumulative deployments between 2024 and 2031. However, public outdoor small cells will account for approximately 25% of cumulative deployments during the forecast period and represent the segment in which SCF has made the largest upward adjustment compared with last year.
Simon Fletcher, Chief Strategy Officer of SCF, said: “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.
Hybrid public/private networks are also gaining importance as enterprises seek to combine dedicated connectivity with access to wider public networks. They are forecast to account for 20% of enterprise small cells by 2031, up from 11% in 2024.
Neutral hosts continue to support scalable investment models
Neutral hosts will continue to play an important role as investment is spread across a wider range of deployers and funders. They are forecast to account for around 28% of annual deployments in the later forecast years, rising to 29% of indoor and 46% of outdoor small cells in 2031.
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