The size of the global mobile backhaul transport market – including wireless and fiber/copper backhaul systems – will drive $5.3 billion annually over the next five years.
A near term rise in wireless backhaul equipment will energize the microwave transmission equipment market.
“Small cells have started to rollout, and though most are indoor units, we think telecom network operators will steadily raise deployments of outdoor small cells requiring additional backhaul links,” said Jimmy Yu, vice president at Dell’Oro Group.
The telecom research report noted that slight mix shift to wireless backhaul from fiber / copper in the near term, which should propel microwave equipment purchases for the next three years.
Small cell backhaul will 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, will grow at an average annual rate of 8 percent through 2020.