Outdoor small cell backhaul equipment increases
According to IHS Markit, the outdoor small cell backhaul market accelerated in 2016, with revenue growing more than 200% year-over-year.
Since 2013, the small cell backhaul market has been in experimentation mode, and it is anticipated that a cumulative $5.1 billion will be spent worldwide from 2016–2020.
This will be driven by an increasing number of projects to augment 3G and Long Term Evolution (LTE) capacity in urban areas and to provide mobile coverage in rural markets.
The $5.1 billion for outdoor small cells is in addition to almost $43 billion that is being spent on macrocell backhaul equipment during the same five-year period.
The compound annual growth rate (CAGR) for the five-year period is 78%.
Deployments of outdoor small cell backhaul connections are expected to grow to 109,000 in 2016, up from 35,000 in 2015. By 2020, deployments are projected to reach 693,000 — for a total installed base of around 1.9 million.
Wireless microwave makes up nearly 60% of small cell backhaul gear revenue today, climbing to over 80% in 2020 led by E band millimetre.
Geographically, small cell deployments generally reflect the regional share of the overall mobile infrastructure market. By 2020, the regional breakdown for small cell backhaul equipment will be Asia Pacific (48%), Europe, the Middle East and Africa (27%), the Caribbean and Latin America (14%) and North America (11%).
The IHS Markit biannual small cell mobile backhaul equipment report tracks equipment used for transporting traffic from outdoor small cell sites, such as those attached to light poles, utility poles, and the sides and tops of buildings. It provides worldwide and regional market size, forecasts through 2020, analysis and trends for equipment, connections and cell sites by type.
The report covers equipment including digital subscriber line (DSL) modems and digital subscriber line access multiplexers (DSLAMs); Ethernet over copper and fibre; <6 GHz microwave; point-to-point (P2P) microwave; point-to-multipoint (P2MP) microwave; and licensed and unlicensed millimetre wave.
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