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Industry News

Cellular Backhaul Drives Point-to-Point Radio Market

August 1, 2008
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The latest study from Strategy Analytics, “Point-to-Point Radio GaAs Market 2007-2012,” predicts that point-to-point radio shipments will increase at a compound annual average growth rate (CAAGR) of 8 percent, to exceed 1.5 million units in 2012. Radio cellular backhaul will continue to be the primary market for point-to-point radios, with other applications, such as trunking, enterprise and public safety, making up the balance.

Cellular backhaul shipments will be driven by wireless network expansions as a function of cellular subscriber growth and replacement of existing links to accommodate the higher bandwidth requirements of next-generation networks. On a regional basis, Asia-PAC, Middle East, Africa and other emerging markets will drive the bulk of demand.

“GaAs component demand is skewed towards MMIC solutions, with some limited demand for discretes as well,” observes Asif Anwar. “Despite the increase in unit demand, ASP pressures will mean the market for GaAs devices will be effectively flat over 2008 and 2009.”

Anwar concluded, “While Strategy Analytics believes that ASPs will hold up better than previously forecast, GaAs device manufacturers targeting this market, such as TriQuint and Avago Technologies in North America, Toshiba and Mitsubishi Electric in Japan and UMS in Europe, will need to optimize their supply relationships to maintain margins in this competitive market.”

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