5G network expansion to drive $17 bn Microwave Transmission market

Dell’Oro Group predicts that 5G network expansion will be driving approximately $17 billion of Microwave Transmission equipment market over the next five years.
Nokia Wavence 5G microwave transport solutionsDuring the forecast period, revenue from Packet Microwave is projected to outpace hybrid systems due to the growing use of E-band systems.

“We anticipate more growth for Microwave Transmission equipment ahead,” said Jimmy Yu, Vice President of Dell’Oro Group. “The growth will be driven by 5G network expansion for the most part. We also think government initiatives to bring high speed broadband to rural areas will increase demand for microwave equipment.”

E-band is the best wireless technology available to meet the requirements of 5G mobile backhaul when fiber is not available. E-band is a good fit for the rural initiatives where the cost and time to lay fiber is prohibitive.

For the cumulative period that includes the years 2022 through 2026, Mobile Backhaul Transport market revenue is expected to be approximately $26 billion. Of this amount,  nearly 65 percent will be earmarked for 5G backhaul.

Microwave Transmission radio transceiver shipments are forecast to grow at a 4 percent compounded annual growth rate (CAGR). During this period, E/V Band shipments are predicted to grow at a 27 percent CAGR.

Use of microwave full outdoor units (FODU) is expected to surpass 50 percent share of microwave shipments by 2026.

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