The overall microwave transmission market is forecast to be relatively flat with a one percent CAGR.
"Demand growth for microwave transmission equipment will be challenged during the next five years," said Jimmy Yu, Vice President at Dell'Oro Group. "We anticipate a number of positive areas such as rising demand for E/V band systems, higher deployment levels in India, and increasing use of smaller full outdoor units. However, we don't think these areas of growth will be enough to offset the underlying decline in mobile backhaul over the next couple years. Absolute market growth is expected to occur when operators begin to upgrade their backhaul links to accommodate 5G sometime near 2019 using equipment such as E/V band millimeter wave systems," Yu added.
Highlights from the report incude:
- Mobile backhaul will drive approximately 70 percent of the microwave transmission market revenue during the next five years;
- Full outdoor unit radio transceiver shipments are forecast to grow at a 16 percent CAGR.