The global millimeter wave technology market is estimated to grow from USD 1.0 billion in 2020 to USD 3.4 billion by 2025, at a CAGR of 26.4%, according to a new study by MarketsAndMarkets. The increase in broadband and mobile speeds with growing utility and demand, rise in usage of millimeter wave in small-cell backhaul networks and substantial demand in the use of millimeter wave technology in security and radar applications are among the factors driving the growth of this market.
Key Highlights from the Research Report:
Frequency Sources & Related Components Accounted for a Larger Share of millimeter wave Technology Market
The market for frequency sources & related components is projected to account for the largest share. The larger market share of frequency components is mainly due to the use of oscillators. The frequency sources and related components include oscillator source devices that generate 30 GHz to 300 GHz signals. The efficiency of signals generated from millimeter wave systems depends on the nature of frequencies involved in the component manufacturing process.
Telecommunication Equipment Accounted for the Largest Share of millimeter wave Technology Market
The telecommunication equipment is estimated to dominate the millimeter wave technology market by product. The high growth of the telecommunication equipment is due to the higher use of millimeter wave components for 5G backhaul. Also, millimeter wave components are widely used in indoor and outdoor telecommunication equipment, which includes small-cell and macro-cell equipment. The market for scanner systems is estimated to account for a significant share due to its high adoption in airports, malls, and other public places for people screening. The market for radar & satellite communication systems is projected to grow at a significant rate due to its adoption in military and defense applications.
Unlicensed Spectrum Accounted for a Larger Share of millimeter wave Technology Market
The millimeter wave technology for unlicensed frequencies accounted for the largest share by in 2019, due to the high adoption of millimeter wave for devices in the unlicensed frequency band. The fully licensed band is set to grow at the highest rate due to its increasing adoption, mainly in the mobile and the telecom sector. Users are expected to use light licensed and fully licensed frequency bands in the near future, owing to the lack of security in the unlicensed spectrum.
The Market for 57-86 GHz Accounted for a Larger Share of millimeter wave Technology Market
The millimeter wave technology market for 57–86 GHz frequency band is projected to account for the largest share and grow at the highest CAGR during the forecast period. The dominance of this frequency band is due to the high demand for this frequency band, as it serves numerous applications such as autonomous mining, security and perimeter protection, traffic monitoring, and automated cruise control. Apart from this, the E-band and V-band are mainly used for the telecom applications, which lie in the 57–86 GHz frequency band, which is expected to further increase the dominance of this frequency band.
Mobile & Telecom Applications Dominated the millimeter wave Technology Market
The mobile & telecom applications dominated the millimeter wave technology market. The growth in this segment is mainly attributed to the large-scale adoption of millimeter wave technologies in 5G mobile phones and telecom infrastructure. The consumer & commercial applications are projected to witness significant growth during the forecast period, due to the high demand for high-speed transmission of video data in CCTV devices. The military, defense, and aerospace applications are expected to contribute significantly to the millimeter wave technology market, due to the higher adoption of millimeter wave components for satellite and aircraft.
North America Accounted for a Major Share of millimeter wave Technology Market
The millimeter wave technology market in North America is estimated to account for the largest share. The growth in the market is mainly attributed to the higher adoption of millimeter wave technology in the mobile and telecom application. The majority of the players offering millimeter wave technology are from this region, such as Axxcss Wireless Solution, Keysight Technologies, Eravant, Aviat Networks, and L3HARRIS TECHNOLOGIES, which would propel the growth of the market in this region. However, the impact of COVID-19 has delayed the installations and implementation of 5G networks. Further, due to the lockdown situation in North America, almost all of the manufacturing facilities have been shut down; it is expected that this would recover by the end of 2020 or the beginning of 2021.
