Multiple reports released within 2020 focusing on the Microwave Radio market, highlight how service providers can tackle their backhaul challenges to meet the needs of wider-area 5G coverage and use cases. While microwave transmission is used mainly as last-mile connectivity in urban areas, a combination of last-mile access and aggregation links is more suitable for suburban and rural deployments, especially for 5G deployments.
We see all reports mentioning significant CAGR for the Microwave Radio market, which is indeed exciting news for vendors!
Ericsson Key findings
- By 2025, 62 percent of backhaul connections globally are expected to be based on microwave (excluding fiber-dense countries China, Taiwan, South Korea and Japan).
- The importance of differentiating backhaul availability is growing as capacity continues to increase. Simulations show that differentiated availability enables cost-efficient backhaul without affecting user experience.
- The future use of 6GHz is a hot topic in backhaul spectrum.
- Carrier aggregation, multi-band and MIMO are efficient tools for handling scarce and scattered spectrum.
With 5G deployments accelerating globally, backhaul capacity requirements will increase for RAN sites. To support these demands a wide range of transport aspects such as spectrum usage, differentiated availability and the mix of fiber and microwave becomes important. Microwave will be a key technology to take 5G outside urban areas.
*Global total mobile data traffic is projected to grow by a factor close to 5 to reach 164EB per month in 2025, according to the Ericsson Mobility Report June 2020 edition.
ReportLinker Key Fidings
The Microwave market is expected to grow at a CAGR of 19.6% over the analysis period 2020-2027.Packet Microwave Radio, one of the segments analyzed in the report, is projected to grow at a 18.4% CAGR to reach US$18.2 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Hybrid Microwave Radio segment is readjusted to a revised 21.4% CAGR for the next 7-year period. This segment currently accounts for a 32.9% share of the global Microwave Radio market.
The Microwave Radio market in the U.S. is estimated at US$2.6 Billion in the year 2020. The country currently accounts for a 29.64% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$5.4 Billion in the year 2027 trailing a CAGR of 18.9% through 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 17.6% and 16.9% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 14.4% CAGR while Rest of European market (as defined in the study) will reach US$5.4 Billion by the year 2027.
In the global TDM Microwave Radio segment, USA, Canada, Japan, China and Europe will drive the 20.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$343.8 Million in the year 2020 will reach a projected size of US$1.3 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$3.8 Billion by the year 2027.We bring years of research experience to this 9th edition of our report. The 181-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A short-term phased recovery by key geography is also addressed.
Other Microwave Radio market Research
Industry Research: The global Microwave Radio market size is projected to reach USD 37760 million (i.e. 37B) by 2026, from USD 12900 million (i.e. 12,9B) in 2020, at a CAGR of 19.6% during 2021-2026.
GlobalInfo: The global Microwave Radio market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 18.8% in the forecast period of 2020 to 2025 and will expected to reach USD 21790 million by 2025, from USD 10960 million in 2019.
Microwave radios work on the underlying principle of microwave transmission. They transmit or exchange information between two devices using electromagnetic waves, having a wavelength ranging from 30 cm to 0.1 cm with radio spectrum of 1 GHz to 300 GHz. Microwaves follow point-to-point communication and can be easily directed by small-sized antennas, which point these narrow beams toward receiving antenna.
The range of electromagnetic waves, which work on a frequency of above 30 GHz to below 100 GHz and have a wavelength of 10 mm to 3 mm, is called millimeter band. Radio waves in this band face strong attenuation from Earth’s atmosphere. The waves with a wide band of frequencies, around 60 GHz, get attenuated by oxygen.