Future 5G Roll Outs to Drive Demand for Microwave Transmission Equipment, According to Dell’Oro Group
According to a recent forecast report by Dell’Oro Group, demand for microwave transmission equipment is set to increase for the next few years due to future 5G deployments. This growth will be driven by new 5G markets that rely more on wireless backhaul.
“Microwave Transmission equipment demand is on the rise,” said Jimmy Yu, vice president of Dell’Oro Group. “Demand for microwave transmission equipment for mobile backhaul is already off to a good start, growing 11 percent in 2021. We expect future 5G installations will drive this market’s growth for a few more years.
“Although 5G deployments started a few years ago, most of those were rolled out in areas with high fiber availability. We are now seeing the 5G spectrum auctions and new roll outs in markets that rely more on wireless backhaul. This bodes well for point-to-point microwave transmission equipment,” added Yu.
Additional highlights from the Microwave Transmission & Mobile Backhaul 5-Year Forecast Report:
- For the cumulative period that includes the years 2022 through 2026, microwave transmission equipment revenue is projected to approach $18 billion.
- Approximately 70 percent of the microwave transmission market will be driven by mobile backhaul. The remainder will be from sales into vertical markets such as enterprises and government.
- The technology segment with the highest five year growth will be E-Band. The E/V-Band market is forecast to grow at a 25 percent compounded annual growth rate.