We anticipate that the demand for Microwave Transmission equipment will increase for a number of years and that much of the growth will be from rising sales of E-band radios. We forecast E-Band radio transceiver shipments to grow at a compounded annual growth rate (CAGR) of nearly 30 percent.
Our more optimistic 2021 outlook is prompted by strong market performance that has so far exceeded our expectations. (1Q21 revenue was up 4% Y/Y in contrast with our flat-market forecast.) Although some of the growth in 1Q21 might have been reflective of pent-up demand, it came mostly from the public sector, while the private sector has not recovered yet, paving the way for more growth in the remainder of the year and potentially next year…
“Again, we have made some near-term downward adjustments to the CBRS forecast, to reflect slower than expected year-to-date LTE CBRS base station adoption,” said Stefan Pongratz, Vice President and analyst at the Dell’Oro Group.
Since the onset of COVID-19, we have predicted that the data center switch market will be for the most part resilient to the effects of the pandemic and that it will quickly recover from its low, single-digit revenue decline in 2020. We continue to believe that the Ethernet switch data center market will return to growth in 2021 and be able to exceed its 2019 pre-pandemic revenue level.
The Optical Transport market, largely driven by WDM equipment, is forecasted to increase in size annually for the next five years, reaching nearly $18 billion. This forecast update is unchanged from our previous forecast.