Wireless Backhaul Market Market Outlook:
The global wireless backhaul market was valued at USD 5,323.3 Mn in 2020 and is anticipated to reach USD 13,791.6 Mn by 2028, expanding at a CAGR of 13.1 % during the forecast period. The wireless backhaul market is expected to grow, due to increasing number of mobile subscribers, increased usage of small cells, the success of 4G and 5G, and the requirement for low total cost of ownership.
Wireless Backhaul Market Market Dynamics
Rising Number Of Mobile Subscribers
The number of active internet users around the world is rapidly increasing as a result of increased smartphone penetration and enhanced connectivity. Globally, improved internet access led to an increase in mobile data traffic. As mobile data traffic grew in popularity, the demand for network bandwidth surged.
To accommodate this need for high bandwidth and provide high-quality services, mobile operators must improve their data transmission techniques. As a result, the mobile and wireless backhaul market is expected to boost in the coming years. The market for mobile and wireless backhaul is largely driven by consumer demand.
Increasing Demand for Network Connectivity as the Internet of Things is Implemented
As a result of the introduction of IOT, there has been an explosion of data delivered to networks and data processing. Growing demand for IOT-ready networks is projected to create opportunities for telecom service providers. IOT sensors are used frequently, as sensor prices decreased.
Various businesses are implementing IOT solutions and want to use IOT in the future to improve their operations. Wireless backhaul solutions that are scalable, have low latency, are high-performing, and have large capacity are a game-changer for IOT implementation.
With the support of modern backhaul solutions, operators meet IOT needs and provide connectivity, as well as exchange data and deduce actions from ordinary physical objects. Growing demand for network connectivity for IOT adoption is expected to fuel the global market in the coming years.
Increasing Adoption of Small Cell Technology
Communication services providers use small cell technology to deploy sites in heavily populated areas with less coverage and large capacity, while lowering congestion on macro cells. Small cell deployment significantly reduces operational costs, which is a driving force for a shift in emphasis to technological innovation.
As a result, as the number of small cells and network components grows, the demand for scalable, efficient, and cost-effective backhaul solutions rises; this is anticipated to boost the market during the forecast period.
Rising Advancement in Network Technology
Demand for bulk data and voice transfer from one point to another at a distance of about 50 to 100 miles increased, due to advancements in network technology and modern-day communications. Wireless backhaul equipment, unlike traditional wire-connected networks, does not require the stretching of wire over a long distance for data transfer.
Data packets are transferred at speeds ranging from 1 Mbps to 2 Gbps using wireless and mobile backhaul technology. The market for wireless backhaul equipment is projected to develop throughout the forecast period, due to upgraded 4G and 5G services.
High Development Costs Of Microwave Equipment
The development cost of microwave equipment is high. The outbreak of COVID-19 is increasing the demand for wireless backhaul, as governments’ implemented complete lockdown, and a majority of people rely on the internet for work, which is leading to a deficit in supply and price gouging. This surge in demand is raising the prices of the development of microwave equipment.
This is expected to restrain the market during the forecast period. The requirement for case-by-case analysis prior to deployments and high initial investment costs are expected to hinder the market growth during the forecast period.
Growing Digitalization across the Globe
Expanding technology sector, as well as global digitalization, provided numerous opportunities for the growth of wireless backhaul equipment. As wireless and mobile equipment becomes widely accepted, it is projected to become a mainstream data transfer method, boosting the demand for wireless and mobile equipment. 3G and 4G telecom technologies for data transport offer prospects for the players in the wireless backhaul equipment market.
Increasing Number of Partnerships and Acquisitions
Increasing number of strategies such as mergers & acquisitions, agreements, partnerships, and product launches among companies to establish themselves as providers of wireless backhaul is anticipated to create lucrative opportunities in the market in the near future. Rising adoption of various strategies by market players to increase their presence and share in the market is expected to create growth opportunities in the market.
Several mobile network operators (MNOs) are incorporating network functions virtualization (NFV) and software-defined networking (SDN) technologies in backhaul networks to optimize traffic at a reduced cost. This is expected to create immense opportunities during the forecast period.
Key Forces Shaping the Market
The threat of new entrants is expected to remain easy to moderate during the forecast period. Existing market players are continuously engaged in innovations and development of products to retain customers by improving the product quality.
New entrants benefit from the existing network of suppliers and distribution channels as well as moderate capital investment for manufacturing wireless backhaul, which is attracting new companies to enter the industry. The market is consolidated in nature, owing to the presence of few domestic players offering wireless backhaul.
Pricing, supply chain, and quality of products are expected to drive the competition among the players in the market. Competitive rivalry is high. Developments to improve the efficiency of wireless backhaul and production techniques are anticipated to increase the competition among the players.
Wireless Backhaul Market Segmental Outlook
The global wireless backhaul market is segmented on the basis of types, network topology, and regions. In terms of components, the global wireless backhaul market is segmented into equipment and services.
The equipment segment is further divided into microwave, millimeter wave, D-Band, V-Band, and testing and measurement. The services segment is further segregated into designing and consulting, integration and deployment, and support and maintenance.
The services segment is anticipated to account for a substantial share of the market and expand at a significant CAGR. Services allow for the development of a cost-effective, comprehensive, and programmable backhaul transport solution while lowering expenses and increasing operational efficiency.
Mobile and wireless backhaul service providers offer consultancy services for building appropriate topologies and network designs for easy transformation of mobile transport networks. This is bolstering the utility of wireless backhaul and is driving the segment.
In terms of network topology, the global wireless backhaul market is segmented into point to point configuration (PTM) and point to multipoint configuration (PTM). The point to point configuration segment is anticipated to account for a substantial share of the market and expand at a significant CAGR. The communication route is not shared; hence point-to-point setup provides security and privacy. This aspect is projected to enhance the segment in the coming years.
Wireless Backhaul Market Regional Outlook
Based on regions, the global wireless backhaul market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America held a significant share of the market in 2020 and is anticipated to expand at a high CAGR during the forecast period, due to growing demand for 5G network and increasing investments in the telecom industry by key players in the region.
Asia Pacific accounted for a considerable share of the market in 2020 and is projected to account for a substantial share of the market during the forecast period, owing to increasing trend of globalization, rising spread of mobile and communication technology, and large number of 5G deployments and initiatives taken by key operators in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the global Wireless Backhaul market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Wireless backhaul Market Performance
- Millimeter Wave
- Testing and Measurement
- Designing and Consulting
- Integration and Deployment
- Support and Maintenance
By Network Topology
- Point to Point Configuration (PTM)
- Points to Multipoint Configuration (PTM)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Aviat Networks, Inc.
- Fujitsu Ltd
- Huawei Technologies Co., Ltd
- Intracom Telecom
- Redline Communications
- SIAE MICROELETTRONICA S.p.A.
- NEC Corporation
- Telefonaktiebolaget LM Ericsson
- ZTE Corporation
- Proxim Wireless
- Analog Devices, Inc.
- Cisco Systems, Inc.
- Texas Instruments
- Top players in the market include Aviat Networks, Inc., CBNG, Ceragon, DRAGONWAVE, Fujitsu Ltd, Huawei Technologies Co., Ltd, Intracom Telecom, Nokia, Broadcom, Redline Communications, SIAE MICROELETTRONICA S.p.A., NEC Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation, Proxim Wireless, MaxLinear, Analog Devices, Inc., Cisco Systems, Inc., Texas Instruments.
- These companies are considered as key manufacturers of wireless backhaul based on their revenue, product offerings, regional presence, and supply chain management system.
- The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunity for the wireless backhaul market.