Point-to-point Microwave Transmission equipment revenue declined year-over-year for a fourth consecutive quarter due to a slowdown in 5G deployments, according to a new report from Dell’Oro Group. The decline was especially strong in the Asia Pacific region.
“The Microwave Transmission market started to trend downward a year ago in 2Q 2023,” stated Jimmy Yu, Vice President at Dell’Oro Group. “This downward trend is, for the most part, due to delays and slow starts in upgrading to 5G as operators in many parts of the world lack incentive to rapidly install a 5G networks,” added Yu.
Additional highlights from the 2Q 2024 Microwave Transmission & Mobile Backhaul Quarterly Report:
- The Microwave Transmission market declined 8 percent year-over-year in 2Q 2024, driven by less demand for Mobile Backhaul. Revenue associated with Mobile Backhaul declined 9 percent year-over-year.
- Both the Long Haul and Short Haul markets declined in the quarter. The steepest rate of decline was in Long Haul due to limited demand for full indoor units (FIDUs). We estimate FIDU revenue declined nearly 40 percent in the quarter.
- All regions declined on a year-over-year basis in the quarter with the exception of the Middle East and Latin America. The region with the steepest decline was Asia Pacific due to India. India revenue declined 40 percent.
- Four vendors (Aviat, Ceragon, Huawei, and ZTE) accomplished to increase their revenue in 2Q 2024 compared to the same period last year.
