Demand for mobile backhaul transport equipment is projected to be $24.5 billion over the next five years. This figure represents the cumulative amount of transport systems that will be deployed from 2024 through 2028, according to a new report from Dell’Oro Group.
“We lowered the near-term forecast by approximately 6 percent since 5G rollouts have dramatically slowed at some operators while others are delaying deployments,” said Jimmy Yu, Vice President of Dell’Oro Group. “However, we believe that all operators will eventually roll out 5G to its fullest potential. Therefore, we believe the 5G build cycle will be more gradual and calculated. Thus, we have transplanted the reduction in mobile backhaul demand forecasted in 2024 and 2025 to the outer years of the forecast time period, creating a more moderate rise in demand over the next five years,” added Yu.
Additional highlights from the Microwave Transmission & Mobile Backhaul 5-Year Forecast July 2024 Report:
- Demand for mobile backhaul equipment, consisting of both wireless and fiber systems, to be used in 5G networks is forecast to grow at a five-year compounded annual growth rate (CAGR) of 13 percent.
- Use of Wireless Systems for backhaul is projected to grow at a higher rate than Fiber Systems in the next five years since more mobile radio deployments are expected to occur in countries that mostly use point-to-point microwave transmission systems for mobile backhaul.