Global Microwave Transmission Equipment Market - 2023-2030

Overview

Global Microwave Transmission Equipment Market reached US$ 5.3 billion in 2022 and is expected to reach US$ 6.7 billion by 2030, growing with a CAGR of 2.6% during the forecast period 2023-2030.

Rapidly growth in data traffic driven by the adoption of smartphones, IoT devices and bandwidth-intensive applications has created a demand for high-capacity backhaul networks. Microwave transmission equipment helps meet the demand being providing high-speed, point-to-point connectivity. Microwave transmission equipment is well-suited for 5G backhaul due to its low latency, high bandwidth capabilities and ability to support the required network densification.

To improve network coverage and capacity, service providers are deploying more cell sites, including small cells and macrocells. Microwave links are crucial for connecting these sites to the core network quickly and cost-effectively. Applications such as real-time gaming, autonomous vehicles and remote surgery demand low-latency networks. Microwave links, with their minimal signal propagation delay, are essential for meeting these latency requirements.

North America is among the growing regions in the global microwave transmission equipment market covering more than 1/4th of the market. The region is at the forefront of 5G network deployment. As microwave transmission, offers high-capacity, low-latency communication between mobile phone towers and core networks, it plays crucial for managing the data traffic in 5G networks.

Dynamics

Deployment of 5G Networks

5G networks offer significantly higher data speeds and capacity compared to previous generations and this increase in data traffic necessitates the use of high-capacity backhaul solutions and microwave transmission equipment plays a crucial role in providing the necessary connectivity to support 5G data demands. 5G networks require a higher number of base stations and small cells to deliver the promised coverage and capacity.

For instance, on 3 July 2023, the rollout of 5G technology in India saw rapid growth with the deployment of 2.7 lakh (270,000) 5G sites within nine months. The Indian government has been supportive of the rapid deployment of 5G technology. Policies and regulatory measures that facilitate the rollout of 5G networks, including the allocation of spectrum and reduction of bureaucratic hurdles, have played a crucial role. Under Atmanirbhar Bharat initiatives top telecom operators developed 4G and 5G designed.

Rising Collaboration Between Companies

Collaboration allows companies to pool their resources and expertise, accelerating technological advancements. Companies can jointly develop and innovate new microwave transmission equipment, leading to faster product development cycles and staying competitive in the market. Collaborative efforts can help companies enter new markets or expand their presence in existing ones. Partnerships with local companies or international alliances can provide access to a broader customer base and distribution networks.

For instance, on 15 February 2023, Tigo Tanzania and Ericsson partnered to launch 5G services in Dar Es Salaam, Dodoma and Zanzibar while modernizing and expanding the existing 4G network across Tanzania. Ericsson is upgrading Tigo Tanzania's 4G network using Radio Access Network (RAN) products and microwave solutions, increasing network capacity and reliability. They will also deploy AI-enabled Cognitive Software for network optimization, ensuring high performance and user experience.

Technology Advancement

Advancement in technology that use higher frequency band, advanced modulation schemes and beamforming techniques that improves spectrum efficiency which allows transmission of data over the available spectrum. Microwave technology is evolving to provide resilient and redundant network architectures, ensuring high availability and fault tolerance. Regulatory changes and spectrum allocation decisions can significantly impact the growth of microwave transmission technology. Manufacturers need to adapt to evolving regulatory requirements.

For instance, on 30 August 2023, Chinese scientists achieved a significant breakthrough in submarine detection technology by successfully testing the world's first submarine-detecting device based on next-generation terahertz communication technology and this innovative device utilizes terahertz waves, which operate between microwave and infrared radiation frequencies, to detect minuscule surface vibrations caused by low-frequency sound sources beneath the open sea.

Limited Range and Signal Vulnerabilities

Microwave signals travel in straight lines, requiring an unobstructed line of sight between the transmitting and receiving antennas. Any physical obstacles like buildings, mountains or tall vegetation can disrupt the signal, limiting the range and coverage. Microwave signals are typically limited to relatively short distances, especially in the Earth's atmosphere. As frequency increases, atmospheric absorption and scattering become more significant, reducing signal range.

Microwave bands used for communication are shared with various other services and applications. Interference from other microwave sources, weather conditions or atmospheric phenomena can degrade signal quality and reliability. Microwave signals can be vulnerable to interception, especially in urban environments where eavesdropping equipment can be more easily concealed. Encryption and security measures are essential to protect sensitive data transmitted via microwaves.

Segment Analysis

The global microwave transmission equipment market is segmented based on network technology, component, frequency band, mounting, application and region.

Adoption of Hybrid Microwave Boosts the Market

Hybrid microwave is expected to be the dominant segment with about 1/3rd of the market during the forecast period 2023-2030. The rising demand for high-speed data transmission and connectivity is a significant growth factor. Hybrid microwave systems can provide the required bandwidth and low-latency connectivity. The rollout of 5G networks is a major driver for hybrid microwave systems. 5G networks require a dense network of small cells for effective coverage and microwave backhaul solutions can efficiently connect these small cells to the core network.

According to a paper published in Harvard in 2022, the research introduces a novel approach to signal conversion between optical and microwave frequencies using a time-varying and programmable metasurface integrated with a high-speed photoelectric detection circuit. The primary objective is to convert a light-intensity signal into two microwave binary frequency shift keying signals. An optical signal is directed toward the metasurface-based transmitter to initiate the conversion process.

Geographical Penetration

Adoption of High Capacity Microwave Communication in 5G Networks in Asia-Pacific

Asia-Pacific is the dominant as well as fastest growing regions in the global microwave transmission equipment market covering around 1/3rd of the market in 2022. The region witnessed an increment in mobile data traffic with the adoption of smartphones and the growth of 4G and 5G networks. The fronthaul and backhaul components of 5G networks frequently involve microwave technology, which fuels the demand for microwave transmission equipment.

For instance, on 22 May 2022, SK Telecom, a South Korean carrier, is planning to use frequency-combining technology in the 11 GHz and 80 GHz spectrum bands to provide high-capacity microwave communication for 5G networks on islands off South Korea's coast and this technology aims to transmit large amounts of data wirelessly over long distances, particularly in areas where laying optical cables is challenging, such as islands and mountains.

Competitive Landscape

The major global players in the market include: Huawei Technologies Co, NEC Crop., Anritsu, Giga-Tronics Inc., Intracom Telecom, MegaFon, Avait Networks, Alcatel-Lucent S.A., LM Ericsson Telefon AB and Ceragon Networks Ltd.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, leading to delays in the manufacturing and delivery of microwave transmission equipment components. Lockdowns, factory closures and restrictions on international trade disrupted the supply of essential materials and components, affecting production schedules. Many manufacturers faced challenges related to the availability of a skilled workforce.

The pandemic led to a shift in demand for microwave transmission equipment. With more people working and studying from home, there was an increased demand for broadband and connectivity solutions. Service providers needed to quickly adapt and expand their networks to meet this surge in demand. To minimize on-site visits and adhere to social distancing guidelines, the industry accelerated the adoption of remote monitoring and maintenance solutions.

Despite the challenges, the rollout of 5G networks continued during the pandemic. Microwave transmission equipment plays a crucial role in 5G backhaul, so there was sustained demand for equipment to support 5G infrastructure. Some telecommunications projects, particularly in regions heavily affected by the pandemic, experienced delays. Deployment timelines for microwave transmission equipment were extended due to disruptions in project planning and execution.

AI Impact

AI algorithms can analyze complex data, such as terrain information and traffic patterns, to optimize the planning and deployment of microwave links and this ensures that microwave transmission equipment is deployed in the most efficient and effective manner, reducing interference and improving signal quality. AI-powered dynamic frequency allocation systems can adapt to changing network conditions in real-time.

AI-driven predictive maintenance models can monitor the health of microwave transmission equipment in real-time. By analyzing performance data and identifying potential issues early, AI can reduce downtime and maintenance costs. Microwave transmission equipment can benefit from AI algorithms that dynamically adjust modulation schemes based on link conditions and this ensures that the highest possible data rates are maintained while minimizing errors, especially in adverse weather conditions.

Russia- Ukraine War Impact

The conflict has disrupted global supply chains, potentially affecting the availability of essential components and materials used in the manufacturing of microwave transmission equipment. Manufacturers may face challenges in sourcing components from the region or rely on alternative suppliers, which can impact production timelines and costs. The war has created geopolitical uncertainty, which can affect international trade and business relations.

The conflict has the potential to shift demand for telecom infrastructure in the region. Telecommunications providers in affected areas may prioritize the expansion and fortification of their networks, including microwave transmission links, to ensure communication resilience in times of crisis. Armed conflicts can result in damage to critical infrastructure, including telecom networks.

By Network Technology

• Hybrid Microwave
• Packet Microwave
• Small-Cell Backhaul
• Time Division Multiplexing (TDM)

By Component

• Antennas
• RF Processing Units
• IDUs
• ODUs
• Cables and Connectors

By Frequency Band

• L Band
• S Band
• C Band
• X Band
• Ku Band
• Ka Band
• V Band

By Mounting

• Full-Indoor
• Split-Mount
• Full-Outdoor

By Application

• Navigation
• Cellular Communication
• Radio Telecommunication
• Satellite Communication
• Radar
• Broadband Communication

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On 2 May 2022, Ceragon Networks Ltd. Entered into an agreement with DISH Wireless to provide ultra-high-capacity IP-50C microwave and IP-50E millimeter-wave transport solutions. DISH is deploying the first cloud-native 5G Smart Network in U.S. and they have selected Ceragon for its proven technology, reliability and deployment capabilities.
• On 16 August 2021, Broadcast Microwave Services launched the BMTS-M, a bi-directional communication system designed for high-quality, reliable and secure streaming of high-definition mission-critical video and data over long distances within a mesh network. The system includes an aircraft-mounted transceiver that communicates with a ground-based outdoor transceiver and an indoor communications and control unit.
• On 16 March 2020, Vislink introduced IPLink 3.0, an IP-centric microwave radio platform designed to meet the connectivity needs of ATSC 3.0 while still supporting legacy ASI interfaces used in ATSC 1.0 and other digital transmissions.

Why Purchase the Report?

• To visualize the global microwave transmission equipment market segmentation based on network technology, component, frequency band, mounting, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of microwave transmission equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global microwave transmission equipment market report would provide approximately 77 tables, 87 figures and 206 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies