5G Launch to Stir Up Microwave Transmission Equipment Demand

As more countries start giving their telcos high-frequency spectrum for managing backhaul, the need for microwave transmission equipment will keep growing. This is a positive sign for the vendors who manufacture microwave transmission equipment. 

Highlights

  • India will soon get to see the 5G launch in the coming months.
  • Up until now, 5G was launched in areas with proper fiberisation to get support for backhaul.
  • As more countries start giving their telcos high-frequency spectrum for managing backhaul, the need for microwave transmission equipment will keep growing.

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India will soon get to see the 5G launch in the coming months. The same will be the case for many other countries around the world. Several countries have already launched 5G commercial 5G networks. Dell' Oro Group has said that the demand for microwave transmission equipment would stir up as the 5G rollout keeps happening across the world. Up until now, 5G was launched in areas with proper fiberisation to get support for backhaul. But now, the spectrum auctions are taking place, and telcos are getting their hands on high spectrum frequencies to help them with backhaul. Due to this, the Dell' Oro Group has updated its 5-year forecast for the Microwave Transmission & Mobile Backhaul report.

Growth Will be Driven by New Markets Which Rely on Wireless Backhaul for 5G

The point in case will be India, where the government has decided to allocate the telcos' E-band frequencies in an administrative manner for backhaul purposes. The telcos will have to pay a market-discovered price later on along with all the spectrum levies applicable on the E-band spectrum as well.

As more countries start giving their telcos high-frequency spectrum for managing backhaul, the need for microwave transmission equipment will keep growing. This is a positive sign for the vendors who manufacture microwave transmission equipment.

Between 2022 - 2026, Dell' Oro Group said that microwave transmission equipment revenue is expected to reach $18 billion approximately. Then, almost 70% of the microwave transmission market will be driven by mobile backhaul. The remaining 30% will be driven by sales to enterprise and government clients. The E/V band market is forecasted to grow at a 25% CAGR (compounded annual growth rate).

Jimmy Yu, Vice President of Dell' Oro Group, said demand for microwave transmission equipment for mobile backhaul is already off to a good start as it grew 11% in 2021. As more countries roll out 5G, the demand for microwave transmission equipment will grow.

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