The second quarter of 2023 witnessed an impressive 77 percent year-over-year growth in shipments of E-band Microwave Transmission equipment, marking a significant upswing in demand for this advanced technology. Leading the market were industry giants Huawei and Ericsson, who together dominated the lion’s share of this burgeoning sector.
The surge in demand for E-band microwave equipment has been particularly notable over the past three quarters, with a considerable portion of these systems finding their way to India. The Indian telecommunications landscape has been quick to embrace the 5G revolution, driving a rapid pace of network rollouts and upgrades.
Jimmy Yu, Vice President at Dell’Oro Group, noted, “Demand for E-band microwave equipment really picked up in the past three quarters… Network rollouts and upgrades to 5G are happening at a really fast pace there.” This trend is a testament to the pivotal role that E-band technology is playing in supporting the rapid evolution of India’s telecom infrastructure.
E-band microwave technology is expanding beyond its traditional role in shorter spans to encompass longer distances. This shift is made possible by advancements in newer radios, which offer higher transmit power and incorporate active antennas for precise site-to-site alignment. These innovations grant these systems the capability to span distances exceeding a couple of kilometers.
The Microwave Transmission market grew by 5 percent year-over-year in 2Q 2023, driven by both Mobile Backhaul and Vertical markets.
The E/V Band market segment achieved record-breaking revenue in the quarter, with total revenue over the preceding four quarters amounting to approximately $600 million.
The duopoly of Huawei and Ericsson maintained a stronghold on the E/V Band market, capturing over 70 percent of the market share during the quarter.
Notable players in the E/V Band segment, besides Huawei and Ericsson, include Nokia, Siklu, and ZTE.
The outlook for the rest of 2023 remains promising, with the Microwave Transmission market poised for continued growth at an unchanged expected rate of 5 percent. The proliferation of E-band technology stands as a pivotal enabler for the ongoing global transition to 5G and beyond.
