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Strong 5G demand driving microwave transmission sales

Strength of demand for 5G is driving strong growth in the microwave transmission equipment market, according to a recently published report from Dell’Oro Group. The findings show that the market will grow 5% in 2023. Demand is especially hot for E-band systems, which are capable of transmitting data at rates up to 20 Gbps. E/V Band shipment volumes are predicted to grow 35% year-over-year.

 

“Microwave transmission equipment demand is in a growth cycle due to 5G,” stated Jimmy Yu, Vice President at Dell’Oro Group. “This growth cycle began in 2021 and is expected to drive increasing demand for microwave equipment for many more years. Among the wireless backhaul technologies, E-band systems are positioned to benefit the most since these products can easily meet the requirements for 5G backhaul.”

 

He added that market growth in 2023 will be driven by higher demand in both mobile backhaul and vertical markets. Huawei held the highest share in the quarter and trailing four-quarter period. The manufacturers with the next highest shares were Ericsson, Nokia, and Ceragon.

 

Aviat Networks has announced the intent to acquire NEC’s wireless backhaul business. The addition of NEC’s microwave business could improve Aviat’s share rank from top-six to top-three.

 

Microwave equipment demand significantly increased in the Indian region. Compared to the same period a year ago, microwave revenue nearly doubled in 1Q 2023.

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