LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global microwave radio market 2016-2020 is expected to grow at a CAGR of approximately 19% during the forecast period.
This research report titled ‘Global Microwave Radio Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
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The report categorizes the global microwave radio market into three major segments based on technology. They are:
- Hybrid microwave radio
- Packet only microwave radio
- TDM microwave radio
Hybrid microwave radio
The global hybrid microwave radio market is expected to exceed USD 5.2 billion by 2020, growing at a CAGR of 16% during the forecast period. The hybrid microwave radio market has been growing since 2012, but post 2015, the overall share of the hybrid microwave radio in the global microwave radio market will tend to decrease. This is because of increased adoption of packet radios. The global hybrid microwave radio market will still continue to grow, owing to their capability to address the replacement market and new greenfield projects.
Hybrid network gained popularity as it can provide a smooth and flexible transition to network operators from 2G to advanced networks like 3G and 4G. It supports the time-division multiplexing (TDM) technology as well as enables packet data transfer by creating virtual LAN (VLAN). The RTN 950 developed by Huawei is a popular hybrid microwave radio transmission equipment. It gained traction in the market due to the presence of 3G base transceiver station (BTS) at the same location as that of 2G BTS. The company received many contracts for enabling 2G and 3G services at the same network site in many Asian countries like India and China. When telecom operators started to roll out the 3G network, they already had a set up for 2G network. The demand for hybrid microwave radio will continue till there is a complete transition from 2G to 3G networks. “In countries such as the US where AT&T has announced the close 2G networks, the demand for TDM and hybrid microwave radio will be affected,” says Navin Rajendra, an industry expert for embedded systems research at Technavio.
Packet only microwave radio
The global packet radio market is expected to reach USD 7.8 billion by 2020, growing at a CAGR of 32% during the forecast period. The global packet microwave radio market is driven by greenfield projects such as the roll out of 4G network, where high capacity throughput radios were the main requirement. In terms of bandwidth, packet radios provide an additional benefit when compared with time-division multiplexing (TDM). TDM radios use a fixed bandwidth to transfer the packet of data, while packet radios can use flexible bandwidth for transferring data, which increases the overall performance in terms of data transfer. Packet radios also use intelligent packet compression mechanisms to reduce overheads introduced by a packet or a frame, which also helps improve the spectral efficiency in a full packet-based environment.
“In addition, the operators’ decision to shut down 3G will fuel the demand for packet microwave radio. For instance, mobile network operator (MNOs) such as Telenor in Norway and T-Mobile in the Czech Republic are planning to shut down 3G before 2G. As a result, all the transmission media will be packet based in the future,” says Navin.
TDM microwave radio
The global TDM microwave radio market was valued at close to USD 980 million in 2015 and is expected to drop to around USD 190 million by 2020, declining at a CAGR of (28)% during the forecast period. The operators having 2G network in rural areas and the annual maintenance contracts or managed service (MS) contracts with end-to-end solution providers such as Ericsson and Huawei drive the global TDM microwave radio market. In addition, in many European countries, the operators have not planned to rule out 2G completely. This is because many system architectures of 4G networks do not support voice and is only for data throughput.
For voice over IP (VoIP), the network operators have to define the call flow to 2G or 3G network. Such plans and system architectures will drive the TDM market (both 2G RAN and TDM microwave) till 2020. The market will show a decrease in shipments, as many operators like AT&T plan to shut down the 2G network for which the TDM-based microwave radios were used. In countries such as Australia, 2G will be shut down by December 2016, and in Singapore, 2G will be shut down by April 2017. This will decrease the overall shipment and market size of the TDM microwave radios.
The top vendors highlighted by Technavio’s hardware and semiconductor research analysts in this report are:
- Alcatel Lucent
- Huawei Technologies
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