Microwave transmission equipment market to reach $6.18 bn

The microwave transmission equipment market is expected to reach $6.18 billion by 2022 from $4.88 billion in 2015, at a CAGR of 3.38 percent between 2016 and 2022.

Ericsson, Huawei Technologies, Nokia, NEC Corp., Aviat Networks, Intracom Telecom Solutions, Ceragon Networks and DragonWave are the key players operating in the microwave transmission equipment market.

Main growth drivers in the microwave transmission equipment market are the factors such as increasing use of cellular communication networks for facilitating M2M connectivity, growing spectrum efficiency and automation level, and rise in LTE advanced standards.

Packet microwave network technology is likely to account for the largest share of the microwave transmission equipment market between 2016 and 2022, according to a report published by MarketsandMarkets.

Packet microwave is a low-cost, high-capacity communication technology. Telecom operators are looking for Packet microwave because they can easily install in urban as well as rural areas. The benefits of packet microwave technology-based broadband services include increased bandwidth, improved modulation, and higher throughput capacities of microwave radios.

This packet microwave technology enables the efficient transmission of TDM and Ethernet packet over radio links and offers innovative and cost-effective wireless transmission solutions for carrier Ethernet services.

The telecom research report said cellular communication is expected to account for the largest share of the microwave transmission equipment market. Increasing cellular communication is driving the growth of the microwave transmission equipment market. Telecoms can provide cellular communication for domestic and enterprise applications using microwave technologies at affordable costs.

Asia Pacific region accounted for the largest share of the microwave transmission equipment market in 2015, followed by North America and Europe.

The microwave transmission equipment market in Asia Pacific is expected to grow at the highest rate.

China and India accounted for a significant share of this market in APAC in 2015. The high growth of the market in this region can be attributed to the increasing demand for high-speed wireless connectivity for consumer applications such as smartphones, high-definition video broadcasting, and e-commerce portals.

China Mobile, China Unicom and China Telecom are the top telecom operators in China. Bharti Airtel, Idea Cellular, Vodafone, Reliance Communications and Reliance Jio are the leading mobile operators in India.

IHS Markit report

Earlier, research agency IHS Markit said that the slow shift toward fiber connections and the use of IP edge routers for mobile backhaul continues. Microwave will be a vital, long-term contributor to the backhaul market; millimeter wave is anticipated to be very relevant in the 5G era.

Richard Webb, research director, mobile backhaul and small cells, IHS Markit, said that projects the global macrocell mobile backhaul equipment market to be almost flat in 2016 from the prior year.

The IHS Markit said microwave radio remains a significant part of the macrocell backhaul picture, and its early investigations into LTE-Advanced Pro and early 5G deployments suggest the continued demand for ever-increasing backhaul bandwidth will result in a boost for microwave—especially millimeter wave—that will contribute to revenue growth through the mid-to-long term.