$17 Billion of Microwave Transmission Equipment Needed over Next Five Years, According to Dell'Oro Group

5G will Accelerate Demand for E-Band Systems

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Jan 27, 2022, 08:00 ET

REDWOOD CITY, Calif., Jan. 27, 2022 /PRNewswire/ -- According to a recent forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, demand for Microwave Transmission equipment is on the rise and it is anticipated that approximately $17 billion of equipment will be needed over the next five years. During 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. Also, it is a good fit for the rural initiatives where the cost and time to lay fiber is prohibitive. Hence, we are expecting the demand for E-band systems to accelerate in the next year or so," 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, Mobile Backhaul Transport market revenue is expected to be approximately $26 billion. Of this amount, we estimate nearly 65 percent is 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 continue increasing for the foreseeable future, surpassing 50 percent share of microwave shipments by 2026.

About the Report
The Dell'Oro Group Microwave Transmission & Mobile Backhaul 5-Year Forecast Report offers complete, in-depth coverage with tables covering manufacturers' revenue, radio transceivers, and average selling prices. The report tracks fronthaul, mobile backhaul by cell type (macro and small cell) and technology (wireless and fiber/copper). The microwave transmission tables forecast point-to-point TDM, Packet and Hybrid Microwave as well as full indoor and full outdoor unit configurations. To learn more about this report, please contact us at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

SOURCE Dell'Oro Group