According to a newly released report from Dell'Oro Group titled "Microwave Transmission Market Report," a leading source for market insights across the telecommunications, security, networking, and data center industries, point-to-point microwave transmission equipment revenue declined year-over-year for the fourth consecutive quarter. This downturn, primarily driven by slower-than-expected 5G rollouts, marks a significant challenge for the market, with the Asia Pacific region seeing the steepest declines.
"The Microwave Transmission market started to trend downward a year ago in 2Q 2023," stated Jimmy Yu, Vice President at Dell'Oro Group. "This downward trend is, for the most part, due to delays and slow starts in upgrading to 5G as operators in many parts of the world lack incentive to rapidly install a 5G networks," added Yu.
Additional highlights from the 2Q 2024 Microwave Transmission & Mobile Backhaul Quarterly Report:
- The Microwave Transmission market declined 8 percent year-over-year in 2Q 2024, driven by less demand for Mobile Backhaul. Revenue associated with Mobile Backhaul declined 9 percent year-over-year.
- Both the Long Haul and Short Haul markets declined in the quarter. The steepest rate of decline was in the Long Haul due to limited demand for full indoor units (FIDUs). We estimate FIDU revenue declined nearly 40 percent in the quarter.
- All regions declined on a year-over-year basis in the quarter except the Middle East and Latin America. The region with the steepest decline was Asia Pacific due to India. India's revenue declined 40 percent.
- Four vendors (Aviat, Ceragon, Huawei, and ZTE) accomplished to increase their revenue in 2Q 2024 compared to the same period last year.
Click here to view the Report on Microwave Transmission & Mobile Backhaul Quarterly.
