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The microwave radio market size is forecast to increase by USD 35.15 billion, at a CAGR of 23.31% between 2023 and 2028. The market is experiencing a significant shift towards point-to-point communication networks, driven by the increasing demand for efficient and reliable data transfer. This trend is further fueled by the growing interest in wireless backhaul technology, which provides a cost-effective and flexible solution for connecting cell towers and other infrastructure. Additionally, there is a pressing need for connectivity in rural and remote areas, where traditional wired infrastructure may not be feasible. Wireless backhaul technology, such as microwave and millimeter wave, offers a viable solution to bridge the digital divide and provide high-speed internet access to these underserved communities. With its ability to deliver high-capacity, low-latency connectivity, wireless backhaul technology is becoming an essential component of modern communication networks.
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The market is a dynamic and evolving industry that focuses on the transmission of electromagnetic waves through radio spectrum for various applications. Point-to-point communication is a primary use case, with antennas transmitting and receiving radio waves in different frequency bands such as S-Band, C-Band, X-Band, Ku-Band, Ka-Band, and L-Band. Attenuation, or signal loss, is a significant challenge in microwave radio systems. To mitigate this, advancements in technology have led to the use of tubes, diodes, and integrated circuits. The millimeter band, which includes frequencies above 30 GHz, is gaining popularity due to its high data transfer rates and ability to provide more spectrum for communication. The market scope includes telecommunication, space, defense, industrial, and healthcare sectors. Technological trends such as packet microwave radio and the increasing use of oxygen as a coolant in microwave components are expected to drive market growth. The report provides insights into the market size, share, and growth prospects for each application area and frequency band.
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 market growth and trends 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.
Further, 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 market during the forecast period
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companiesare 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 companies, 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 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.
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The hybrid microwave radio segment was the largest segment and was valued at USD 4.72 billion in 2018. 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 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. This is 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.
In addition, 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Microwave radio technology utilizes electromagnetic waves in the radio spectrum to facilitate point-to-point communication. The wavelength of these radio waves ranges from millimeters to meters. This technology plays a crucial role in various applications, including power utilities, satellite communications, navigation, radar, electric warfare, and military applications. Antennas are a vital component of microwave radio systems, enabling the transmission and reception of radio waves. Technological trends in this market include the development of packet microwave radio systems, which offer improved data transmission efficiency and reliability. The millimeter band, specifically the E-Band, is gaining popularity due to its ability to support high-capacity 5G network services and infrastructure.
Further, applications of microwave radio technology extend to the aerospace industry, avionics, and the electronic industry. Semiconductor devices and waveguide products are essential components in the production of microwave radio systems. Neon gas is used in some applications due to its unique properties in the microwave frequency range. The market is vast and diverse, with applications in various sectors such as medical, location services, and commercial communications. Technological advancements in this field continue to drive innovation, from cancer detection and treatment in medical applications to defense and surveillance systems. However, supply chain disruptions and the evolving 5G infrastructure may pose challenges to the market's growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.31% |
Market growth 2024-2028 |
USD 35.15 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.59 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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