$17 Billion Of Microwave Transmission Equipment Needed Over Next Five Years, According To Dell’Oro Group

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.

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“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.

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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.

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