Mobile backhaul transport equipment for 5G networks will experience a compounded annual growth rate (CAGR) of 12 percent from 2024 through 2028, according to Dell’Oro Group.
However, the growth in the mobile backhaul transport equipment for 5G networks will decline the following year as the industry begins shifting focus toward 6G network upgrades.
The 5G deployment cycle, which began in 2018 and continued to expand through 2023, drove strong demand for both wireless and fiber backhaul systems. While a decline in demand is anticipated in 2024, Dell’Oro Group expects a resurgence in mobile backhaul equipment investments until 2028, which is projected to mark the end of the 5G era and the beginning of the 6G transition.
The forecast highlights that the 5G rollout has been more prolonged and gradual compared to the 4G deployment cycle. As a result, while a temporary decline in mobile backhaul transport revenue is expected in 2024, there is potential for short-term growth before the market contracts in the later years of the forecast period.
The report notes that the adoption of fiber and copper systems for mobile backhaul has consistently increased with each generation of mobile technology. It is anticipated that fiber-based backhaul links will maintain a higher share compared to wireless-based systems throughout the forecast period. In the next five years, wireless backhaul links are expected to experience growth due to the extensive deployment of 5G networks in regions that depend on point-to-point microwave for connectivity.
The microwave transmission market is projected to grow over the next three years, with an average annual growth rate of 3 percent, before entering a period of contraction in 2028. This decline in microwave transmission market is expected to persist until the transition to 6G networks begins.
The increasing backhaul capacity requirements of 5G networks are also driving greater demand for E/V Band systems, which provide high-capacity wireless backhaul solutions. As a result, shipments of E/V Band systems are forecast to grow at a five-year CAGR of 13 percent, reflecting their critical role in supporting advanced 5G network deployments.
TelecomLead.com News Desk
