Wednesday, January 28, 2015

Dell’Oro: Microwave Transmission Equipment Market Improves

The point-to-point microwave transmission market is forecast to generate approximately $21 billion in equipment revenue over the next five years, according to a new report by Dell’Oro Group.

“The environment for microwave transmission equipment began to improve in 2014.  We believe this positive trend will last for a few more years as operators continue to roll out new cell sites and upgrade to 4G LTE,” said Jimmy Yu, Vice President of Microwave Transmission research at Dell’Oro Group.  “Within the next five years, we also anticipate the installation of small cells will become more pronounced, driving a change in the microwave market.  That is, since the requirements for small cell backhaul are fundamentally different from those of macro cells, we envision the variety of microwave transmission equipment deployed will change in unison. We also believe the market movement to small cell backhaul will drive higher demand for Packet Microwave, full outdoor unit configurations, and ultra-high capacity links,” Mr. Yu added.

Some highlights:

  • Packet Microwave revenue expected to comprise nearly one-third of Microwave Transmission market by 2019.
  • Full outdoor unit configured radio transceivers forecast to grow at an average annual rate of 27 percent for next five years.
  • Ultra-high capacity system shipments forecast to grow at an average annual rate of 37 percent for next five years.