Global outlook of the microwave radio market

Technavio’s market research analysts have predicted that the global microwave radio market will grow steadily at an impressive rate and will post a CAGR of about 19% by 2020. The reducing profit margins from mobile networks have induced mobile network operators (MNOs) to focus more on generating their revenue from data rather than voice to increase their profitability. There is an increasing demand for data, and this will compel MNOs to upgrade their infrastructure. Upgrading the transport network includes cost of equipment and services and requires at least 30% of the overall project cost. This high cost is mainly due to the high price of equipment for the optical transport-based network. Whereas, deploying a microwave network costs less than the deployment of the fiber network. Microwave deployment allows fast go-to-market reach and also has a much lesser footprint than that of the fiber network. As a result, the coming years will witness many MNOs preferring microwave radio system deployment for establishing a new network.

Vendors normally use fiber optics to connect the main baseband unit (BBU) with the remote radio unit (RRU) as a solution to MNOs. Using the microwave as a wireless means to connect the BBU helps operators to achieve a wider and denser network coverage. Microwave networks offer low latency common public radio interface (CPRI) transport with a speed of above 2 Gbps. This will allow MNOs deliver cloud radio access network (C-RAN) or centralized RAN with zero footprint. This emergence of the microwave as a front-haul solution will be one of the major trends to gain traction in the market during the predicted period.

Competitive landscape and key vendors

The market is characterized by the presence of numerous microwave radio vendors who provide microwave radio as per the demand and requirement of the customers. Vendors mainly compete based on the following functionalities such as security, capacity, latency, 1588.V2 Ethernet support, and carrier-class characteristics based on the generation of the radios. The emergence of Tier 1 equipment manufacturers who provide end-to-end solutions to service providers and network operators such as  Alcatel- Lucent (via OEM), Ericsson, Huawei, NEC, and Nokia, pose a stiff competition to existing microwave radio manufacturers vendors. The market will further witness the entry of more Tier 1 equipment manufacturers such as NEC and Ericsson in the millimeter wave radio market, which will lead to the introduction of more cost-effective solutions in the coming years.

The leading vendors in the market are -

• Alcatel Lucent
• Dragonwave
• Ericsson
• Huawei Technologies
• NEC
• ZTE

Segmentation by technology and analysis of the microwave radio market

• Hybrid microwave radio
• Packet microwave radio
• TDM microwave radio

The packet microwave radio segment is expected to increase its dominance in the microwave communication systems market by the end of 2020 and is estimated to account for a share of about 63% by the end of the forecast period. Packet radios can use flexible bandwidth for transferring data, which will increase the overall performance in terms of data transfer. They also use intelligent packet compression mechanisms to reduce overheads introduced by a packet or a frame. This helps to enhance the spectral efficiency in a full packet-based environment. These features will increase the adoption of packet radios in the coming years, and this market segment will grow immensely at a CAGR of about 32% during the predicted period.

Geographical segmentation and analysis of the microwave radio market

• Americas
• APAC
• EMEA

According to this market study, APAC will account for a major share of about 40% of the total revenue share of the microwave radio market by 2020 and will dominate the market throughout the forecast period. Network operators in the developing countries in this region such as India, China, Philippines, and Thailand are upgrading their core and are adopting microwave transmission networks to provide advanced services like 3G, 4G, and 5G. This will propel the demand for the market from this region. Additionally, network providers in Singapore will also completely switch over from 2G to either 3G or 4G, which will drive the demand for packet and hybrid microwave radios.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global microwave radio market?
• What are the key market trends impacting the growth of the global microwave radio market?
• What are the challenges to market growth?
• Who are the key vendors in the global microwave radio market?
• What are the market opportunities and threats faced by the vendors in the global microwave radio market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global microwave radio market?

Technavio also offers customization on reports based on specific client requirement.

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Microwave radio is a technological innovation that delivers data within the telecom industry. Through a microwave radio relay, the telecom service providers can transmit digital and analog signals across long distances.  Microwave radios are segmented as per their capacities, transmission protocols, and architecture schemes. The low capacity radios include SDH or PDH radios that are sold with less capacity than 155 Mbps, high capacity radios include SDH radios that run at 155 Mbps, and ultra-high capacity radios include radios that run at 400 Mbps and more. Ericsson, Huawei, and Alcatel-Lucent will be some of the most prominent players in this market space.

The report, global microwave radio market, is part of Technavio’s hardware and semiconductor research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as computing devices, displays, embedded systems, human machine interface, lighting, semiconductor equipment, and sensors. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.