Dell’Oro Group: Demand for Microwave Transmission Gear rose 11% in 1H21; driven by LTE, 5G

A new report by Dell'Oro Group showed an increase in demand for microwave transmission equipment in the first half of 2021.

Demand for Microwave Transmission Equipment Rising: Dell'Oro Group

The demand for the said equipment grew 11% year-over-year. This demand, pushed by 4G and 5G, reflected the market recovery from the decline caused by the COVID-19 pandemic.

Dell'Oro Group said that during the same period, microwave revenue from mobile backhaul applications grew by 16%. Further, Huawei, Ericsson and Nokia were the top three vendors in the ongoing quarter, the report said.

The report said that Huawei, the Chinese telecom vendor, regained most of its lost share in the microwave transmission equipment market in Q2 2021. It also led its Swedish rival Ericsson by 10%.

Jimmy Yu, Vice President at Dell'Oro Group, said, "almost all of the vendors in this industry are benefiting from the improving mobile backhaul market, especially the top vendors."

He added, "since demand is rising, each vendor's performance this year will come down to how well they navigate the supply issues created by the pandemic and semiconductor shortages."

The report also said that except from Latin America, all regions contributed to the positive market growth this quarter. Latin America, the only region in decline, has seen red for 9th straight quarter. E/V Band revenue growth remained positive for another consecutive quarter and held its double-digit Y-o-Y growth rate, Dell'Oro Group said.