The Mobile Backhaul Transport market, comprising of wireless and fiber/copper backhaul systems, is forecast to drive $5.3 billion annually over the next five years as a near term rise in wireless backhaul equipment will energize the Microwave Transmission equipment market, according to a new report by Dell’Oro Group.
Some highlights:
- Small cell backhaul is forecast to contribute approximately 25 percent of the Mobile Backhaul Transport revenue by 2020.
- Demand for Microwave Transmission radio transceivers, used in a number of applications including mobile radios, is forecast to grow at an average annual rate of 8 percent through 2020.
“Much of the expansion in mobile backhaul is behind us,” said Jimmy Yu, Vice President at Dell’Oro Group. “While we do not envision topline market expansion in the next five years, we do believe a few dynamics are underway. Most notably, small cells have finally started to rollout, and though most are indoor units, we think operators will steadily raise deployments of outdoor small cells requiring additional backhaul links. Another dynamic underway is a slight mix shift to wireless backhaul from fiber/copper in the near term, which should propel microwave equipment purchases for the next three years,” Yu added.