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The microwave radio market size is estimated to grow at a CAGR of 17.93% between 2022 and 2027. The market size is forecast to increase by USD 20,867.98 million. The growth of the market depends on several factors, including increasing demand for point-to-point communication networks, growing interest in wireless backhaul technology and growing demand for connectivity in rural and remote areas.
This microwave radio market report extensively covers market segmentation by type (hybrid microwave radio, packet microwave radio, and TDM microwave radio), application (communication, power utilities, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased demand for point-to-point communication networks is driving the market growth although factors such as spectrum allocation issues related to microwave radio may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for point-to-point communication networks is driving the market growth. Nowadays, businesses, industries, and governments require high-speed, reliable, and cost-effective communication networks to communicate, share information, and access cloud-based applications. Microwave radio systems satisfy the requirements for faster and seamless communication between two or more locations in real-time. Microwave radio communication systems offer low-latency connectivity, which makes them the preferred choice of organizations for process control, transaction processing, video conferencing, and data transmission.
As more industries adopt digitization and automation, the demand for high-speed, low-latency communication networks is soaring. Increasing urbanization, the need for high-speed communication in rural areas, and government initiatives to improve communication infrastructure in outlying regions are also driving the growth of this market. Besides point-to-point communication networks, microwave radio systems are also being used as alternatives in places where fiber optic cables cannot be installed due to distance, environmental factors, or terrain. Therefore, the increasing demand for point-to-point communication networks is expected to drive the growth of the global microwave radio market during the forecast period.
The increasing adoption of 5G technology is a key trend in the market. It is expected to drive the growth of the global microwave radio market during the forecast period. The higher frequency bands used in 5G require more fiber backhaul and microwave radio links to provide higher speeds and lower latency and microwave radio technology is an integral component of 5G infrastructure, as it provides a cost-effective way to implement the same. Also, an increase in network traffic indicates an increasing requirement for high-speed and high-bandwidth networks to support the data flow. Hence, the adoption of microwave radio technology is expected to increase significantly worldwide during the forecast period.
For instance, by the end of 2023, in North America, 25% of all networked devices will be mobile-connected, and 75% will be wired or connected over Wi-Fi. Also, developing countries such as India and Brazil are also deploying 5G network services for high-speed Internet services. In November 2022, Brazilian mobile operator TIM announced its partnership with Nokia to develop a private 5G network in Brazil's Santos port which involves eight base station sites that cover the entire terminal area. Brazil expects to expand standalone 5G to 57.7% of the population by 2027. Thus, the increasing adoption of 5G technology will drive the demand and boost the growth of the microwave radio market during the forecast period.
Spectrum allocation issues related to microwave radio are challenging market growth. It has been a long-standing challenge to the microwave radio market, and continues to affect industry growth prospects. The radio frequency spectrum is a finite resource, and the allocation of frequencies by regulatory authorities is crucial to market growth. One significant issue is the competition for spectrum allocation by various wireless technologies, such as cellular networks, Wi-Fi, and satellite communication. This results in congestion, interference, and signal quality degradation, leading to poor connectivity.
Regulatory authorities cannot keep up with the demand and innovation in the wireless industry, leading to spectrum scarcity for microwave radio users. Moreover, countries have different regulations regarding spectrum allocation, making it difficult for microwave radio providers to serve users in global markets. Harmonization of frequency allocation is crucial to ensure global connectivity and eliminate interference issues.
Instances of spectrum allocation issues are prevalent. For example, Indian telecom authorities allocated the 5.8-5.9 GHz gigahertz (GHz) frequency band to the Intelligent Transport System (ITS) in 2021, leaving less bandwidth for microwave operators. Similarly, the US government auctioned the 28 GHz spectrum band for 5G cellular networks in 2021, reducing the available bandwidth for microwave radio operators. Therefore, the lack of efficient spectrum allocation will hamper the growth of the global microwave radio market during the forecast period
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Microwave Radio Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fujitsu Ltd. - The company offers microwave radio namely Fujitsu FRX-3 Series.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The hybrid microwave radio (HMR) segment is estimated to witness significant growth during the forecast period. HMR is wireless communication technology that combines the benefits of microwave and packet-switched networks to provide high-speed and reliable point-to-point connectivity even in remote or rural areas. The demand for HMR is growing in various industries, including telecommunications, transportation, oil and gas, and defence as well as due to the increasing number of connected devices and applications requiring high-speed data transmission. For instance, according to IoT Analytics report, the number of global IoT connections reached 14.3 billion active IoT endpoints in 2022, with an 18% year-on-year (YoY) growth rate. It is expected that globally, the number of connected IoT devices will grow another 16% compared to 2022 to 16.7 billion active endpoints by the end of 2023.
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The hybrid microwave radio segment was the largest segment and was valued at USD 4089.65 million in 2017. In the telecommunications industry, HMR technology is issued to provide high-speed connectivity between cell towers, data centres, and other critical telecommunication infrastructure. Moreover, in defence, HMR technology is used in military applications to provide secure and reliable communication for various mission-critical operations. The growing demand for high-speed connectivity, the increasing number of connected devices, and the need for real-time communication will contribute to the growth of the HMR segment of the global microwave radio market during the forecast period.
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC was the largest geographical segment of the global microwave radio market during the forecast period and will continue to be so owing to the increasing adoption of 5G technologies and automation in industries.
The high revenue contribution from this region is due to the presence of numerous consumer electronic device manufacturers, including SAMSUNG, LG Electronics, Sony, Micromax, MI, and dozens of other Chinese manufacturers which creates a huge demand for transceiver chips in APAC.
The increasing penetration of the Internet, higher adoption of mobile computing devices (such as smartphones), and the rapidly growing IoT infrastructure are the major factors driving the growth of the market in APAC. Government agencies and enterprises are adopting smarter ways to realize a return on investment and are shifting toward cloud-based services.
The adoption of public wireless local area network (WLAN) in the region is picking up pace in countries such as India, China, Hong Kong, Japan, Singapore, South Korea, and Taiwan. The APAC market is being spurred by expanding wireless technology adoption and increased investment by key telecom providers. According to the GSMA Intelligence Report, mobile operator companies in APAC are expected to invest more than USD 400 billion by 2025.
The other major factors that will drive the deployment of wireless access points are the increasing number of government initiatives for the adoption of smart lighting systems and the growing popularity of smart homes, which will propel the growth of the microwave radio market in APAC during the forecast period.
Increasing disposable income is increasing the sales of smartphones in the region. These mobile subscribers are now looking for faster Internet connections at affordable prices, which is expected to drive technological advances in the telecom sector. With the continuous deployment of 4G and the imminent deployment of 5G, the number of mobile subscribers is bound to increase in the region. For instance, in 2021, more than 55% of the population in APAC were Internet users.
The increasing Internet penetration in APAC is providing growth opportunities to mobile telecommunication service operators who need to build infrastructure that can support the increasing demand for high-bandwidth, data-intensive applications. The development of such 5G infrastructure will increase the demand for microwave radio technology in the region during the forecast period.
The COVID-19 pandemic had a positive impact on the growth of the APAC microwave radio market in 2020. With lockdown and restrictions on physical movement, there was a surge in demand for high-speed and reliable Internet services to support remote working, online learning, and telemedicine. However, supply chain disruptions, reduced production volumes, and a decline in the installation of microwave radios due to lockdown and safety measures negatively affected market growth during the pandemic.
But mass vaccination drives and the resumption of supply chain operations revived the growth of the regional market in 2021. The recommencement of operations in end-user industries such as telecommunications increased the demand for microwave radio. Also, the increasing adoption of 5G technology, growing penetration of connected devices, and growth in communication infrastructure are expected to foster the growth of the regional microwave radio market during the forecast period.
The microwave radio market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Microwave Radio Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.93% |
Market growth 2023-2027 |
USD 20867.98 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.62 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aviat Networks Inc., Axxcss Wireless Solutions Inc., Cambium Networks Corp., Ceragon Networks Ltd., Comba Telecom Systems Holdings Ltd., Curvalux UK Ltd., DragonWave X, Extreme Networks Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., Intracom SA Telecommunications Solutions, NEC Corp., Netgear Inc., Nokia Corp., Proxim Wireless Corp., RAD Data Communications Ltd., SIAE MICROELETTRONICA Spa, Telefonaktiebolaget LM Ericsson, Ubiquiti Inc., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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