Mobile backhaul equipment — consisting of transport, routers and switches — is expected to generate nearly $39 billion revenue by 2019.
“The annual revenue growth rates will soften through the next five years and the type of equipment needed in the future will change,” said Jimmy Yu, vice president of Mobile Backhaul Market Research at Dell’Oro Group.
The telecom analysis report said that the need for Layer 2 and 3 network elements increases with the mobile radio access network moving to a higher concentration of LTE radios. There will be steady growth in Routers and Switches through 2019.
Telecom operators will begin to roll out more small cells than macro cells. Since small cells have a different set of backhaul requirements than the traditional macro cells. There will be increase in demand for smaller form factor equipment at lower price points.
