“Demand for Microwave Transmission gear is on the upswing,” said Jimmy Yu, Vice President of Dell’Oro Group. “The growing number of 5G rollouts occurring globally is feeding the need for more wireless mobile backhaul. This is especially true for E-band systems since they were designed to efficiently transmit multiple gigabits of bandwidth. Hence, we are projecting shipments of E-band radios to grow at a 22 percent CAGR for the next five years.”
“We can think of this revision more as a near-term calibration than a change in the long-term growth trajectory,” said Stefan Pongratz, Vice President and Analyst at the Dell’Oro Group. “This journey of “re-shaping” the RAN was never expected to be smooth and many challenges remain
“We anticipate an outstanding market performance for 2023, marking the third successive year of double-digit growth and a new sales record,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “While challenges such as backlog normalization, data center capacity digestion, and spending optimization may temporarily impact market growth in 2024
“We slightly raised our outlook for Optical Transport equipment,” said Jimmy Yu, Vice President at Dell’Oro Group. “We believe the demand for long haul equipment is better than we had originally thought and while working on the report identified more items that could further improve future market revenues than lower them.
“Even if it is early days in the broader 5G journey, the challenge now is the comparisons are becoming more challenging in the more mature 5G markets and the upside with the slower-to-adopt 5G regions is not enough to extend the growth streak,” said Stefan Pongratz, Vice President at Dell’Oro Group.