Dell’Oro Group Projects Two More Years of Growth in Point-to-Point Microwave Transmission

Dell’Oro Group projects that point-to-point microwave transmission equipment will see at least two more years of growth, supported by 5G network expansion and evolving backhaul needs through 6G-related deployments.

Outlook for microwave transmission equipment

Dell’Oro Group expects “at least two more years of growth for point-to-point microwave transmission equipment,” citing ongoing expansion of 5G networks and increasing global coverage. After that period, the report says demand for mobile backhaul equipment is likely to decline until 6G mobile radio deployments begin.

The firm adds that growth is expected to occur first in fiber-based backhaul systems, followed later by increased demand for microwave transmission systems as the next cycle develops. “After this period, demand for mobile backhaul equipment is likely set to decline until 6G mobile radio deployments enter the picture,” said Jimmy Yu.

Forecast highlights from the 5-year report

Dell’Oro Group forecasts that microwave transmission revenue associated with 5G will grow through 2028 at an average annual rate of 12 percent, then decline for at least three years. The report projects microwave transmission revenue to return to growth in 2032.

The report also projects that E/V Band systems will face higher demand due to backhaul capacity requirements for 5G and 5G Advanced. It forecasts E/V Band shipments will grow at a five-year CAGR of 16 percent.

Mobile backhaul mix and technology shift

Dell’Oro Group says the use of fiber/copper systems for mobile backhaul has increased with each generation of mobile radio technology. It expects fiber-based backhaul links to surpass wireless links throughout the forecast period.

Over the next four years, the firm projects wireless backhaul share will increase in regions that rely more on point-to-point microwave connectivity. By 2030, it says the trend will reverse as initial 6G deployments favor cell sites equipped with fiber-based systems.

This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.