The global microwave equipment market totaled $1.2 billion in the first quarter of 2015 (1Q15), a 9 percent sequential decline as operators continued to be cautious with spending, according to the IHS Infonetics Microwave Equipment report.
- Microwave equipment revenue has been trending downward for the last few years due to pricing pressure and competition from fiber-based backhaul solutions
- Backhaul comprised 85 percent of microwave equipment revenue in 1Q15, while transport made up 8 percent and access 7 percent
- From a technology perspective, the dual Ethernet/TDM and all-Ethernet segments dominated microwave sales in Q1
- EMEA and Asia Pacific again led in microwave equipment revenue, together combining for 81 percent of global share
- Most microwave gear manufacturers reported decreased quarter-over-quarter results in 1Q15
“While some seasonality in the first quarter is typical, the microwave market was a little softer than usual in the first quarter as operators kept a tight rein on capex. On the plus side, the market did grow 15 percent from the year-ago first quarter,” said Richard Webb, research director for mobile backhaul and small cells at IHS. “In the long term, new shoots of growth from LTE/LTE-A backhaul upgrades and small cell deployments will give the market a boost, driving it back to revenue growth beginning in 2017."