The continued global expansion of 5G networks is expected to sustain demand for point-to-point microwave transmission equipment for at least the next two years, according to the latest Microwave Transmission & Mobile Backhaul 5-Year Forecast from Dell'Oro Group.

The market research firm projects that ongoing 5G deployments will fuel continued investment in mobile backhaul infrastructure before demand moderates as the industry transitions toward 6G.

"We anticipate at least two more years of growth for point-to-point microwave transmission equipment," said Jimmy Yu, Vice President of Dell'Oro Group. "This growth will be primarily driven by the ongoing expansion of 5G networks, as global coverage increases. After this period, demand for mobile backhaul equipment is likely set to decline until 6G mobile radio deployments enter the picture."

"Similar to the 5G cycle, we anticipate most of the growth will be in fiber-based backhaul systems initially, but after that, once again, demand for microwave transmission systems will be on the rise," added Yu.

According to the forecast, fiber-based mobile backhaul will continue gaining market share and is expected to surpass wireless backhaul throughout the forecast period. However, wireless backhaul is projected to increase over the next four years as operators extend 5G coverage in regions where point-to-point microwave remains the most economical or technically viable connectivity option. By 2030, Dell'Oro expects that trend to reverse as initial 6G deployments increasingly rely on fiber-connected cell sites.

The report also forecasts continued revenue growth for microwave transmission systems supporting 5G networks. Revenue is expected to increase at an average annual rate of 12% through 2028 before declining during the industry's transition toward 6G. Growth is projected to resume in 2032 as next-generation network deployments accelerate.

Higher bandwidth requirements associated with 5G and 5G Advanced are also expected to boost adoption of E/V Band microwave systems. Dell'Oro forecasts E/V Band shipments will grow at a compound annual growth rate (CAGR) of 16% over the next five years, reflecting operators' increasing need for higher-capacity wireless backhaul solutions.

The forecast underscores the evolving role of microwave transmission in next-generation mobile networks. While fiber continues to expand as the preferred long-term backhaul medium, microwave technology remains a critical component for rapidly extending network coverage, supporting high-capacity links, and connecting locations where fiber deployment is economically or geographically challenging.

Source: Dell'Oro Group

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