In the first half of 2021, the demand for microwave transmission equipment grew 11 per cent year-on-year driven by long-term evolution (LTE) and 5G as the market started recovering from the decline caused by the Covid-19 pandemic, as per a report by Dell’Oro Group.
Further, all global regions contributed to the positive market growth, with the exception of Latin America, that witnessed a slowdown on a year-on-year basis.
The report states that microwave revenue from backhaul applications grew 16 per cent during the same period. According to the report, Huawei, Ericsson, and Nokia remained the top three vendors during the period. In addition, Huawei regained “most” of its lost share and led its Swedish rival Ericsson by a margin of 10 per cent points.
Moreover, the E/V band revenue growth rate rose by double digits on a year-on-year basis, the report said.
Commenting on the development, Stefan Pongratz, Vice President and analyst with the Dell’Oro Group, said, “The underlying long-term growth drivers have not changed and continue reflect the shift from 4G to 5G, new FWA and enterprise capex, and the transition towards active antenna systems”. “At the same time, a string of indicators suggest that this output acceleration is still largely driven by the shift from 4G to 5G, which continued at a torrid pace in the quarter, even as LTE surprised on the upside,” he added.