Small cell backhaul seen driving $21B microwave transmission equipment market

Microwave transmission equipment market to generate $21 billion over the next 5 years, says Dell'Oro Group.

NBASE-T and 802.11ax to spur WLAN market in tandem: Analyst
NBASE-T and 802.11ax to spur WLAN market in tandem: Analyst

Dell’Oro Group is forecasting the point-to-point microwave transmission market to generate approximately $21 billion in equipment revenue over the next five years. “The environment for microwave transmission equipment began to improve in 2014. We believe this positive trend will last for a few more years as operators continue to roll out new cell sites and upgrade to 4G LTE," said Jimmy Yu, vice president of microwave transmission research at Dell’Oro Group. "'

“Within the next five years, we also anticipate the installation of small cells will become more pronounced, driving a change in the microwave market," Yu added. "That is, since the requirements for small cell backhaul are fundamentally different from those of macro cells, we envision the variety of microwave transmission equipment deployed will change in unison."

Dell’Oro Group's new Microwave Transmission 5-Year Forecast Report offers in-depth coverage of the microwave transmission market, with tables covering manufacturers’ revenue, ports/radio transceivers shipped, and average selling prices by capacities (low, high and ultra high). The report tracks point-to-point TDM, packet and hybrid microwave, as well as full indoor and full outdoor unit configurations.

"We also believe the market movement to small cell backhaul will drive higher demand for packet microwave [technology], full outdoor unit configurations, and ultra-high capacity links,” Yu concluded.

According to the report, packet microwave revenue is expected to comprise nearly one-third of the microwave transmission market by 2019. Full outdoor unit configured radio transceivers are forecasted to grow at an average annual rate of 27 percent for next five years. Ultra-high capacity system shipments forecasted to grow at an average annual rate of 37 percent for next five years.

Learn more about the report.

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