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Overview of the Microwave Transmission Equipment Market

In the latest report from Dell'Oro Group, a reputable source for market insights into telecommunications and related sectors, it has been revealed that the microwave transmission equipment market concluded 2025 with flat revenue growth. This shift in market dynamics stands out given the early signs of optimism observed at the year's onset. During the first half of 2025, the sector saw a budding growth trend, primarily driven by the increasing needs in developing markets, where microwave technology serves as a crucial link between mobile base stations and network operators.

Market Trends and Performance

As highlighted by Jimmy Yu, Vice President at Dell'Oro Group, although the microwave transmission equipment market had a promising start in early 2025, it gradually weakened as the year progressed. Initial forecasts predicted slight growth fueled by burgeoning demand, notably in emerging economies like India and Latin America where wireless backhaul is vital for infrastructure advancements. Unfortunately, as the year unfolded, demand from these key regions dwindled, resulting in a nominal decline of one percent in the market for the year.

Despite this setback, analysts maintain that the market's foundational elements remain solid. Many still believe that a resurgence in demand for microwave transmission equipment is expected until 2027, post which 5G deployments are projected to peak, reshaping the technological landscape.

Vendor Landscape Changes

The report indicates notable changes in the vendor landscape throughout 2025, reflecting ongoing consolidation trends. The report details an evolution where the top six manufacturers intensified their revenue shares, increasing from 85% to 87%, illustrating a clear trend toward market consolidation. In particular, companies like ZTE and Aviat improved their standing within the rankings, while others, such as Ceragon, experienced a decline.

Emerging Demand Factors

Interestingly, the use of microwave transmission equipment witnessed a spike specifically in mobile backhaul applications due to the advent of both 4G and 5G mobile networks. While this aspect highlights a positive shift in certain segments, it also must be noted that the vertical markets inclusive of private networks and mission-critical enterprises observed a decline, offsetting potential growth from mobile backhaul.

Looking Ahead

As we look to the future, the insights from the report suggest a mixed outlook for the microwave transmission equipment market. While 2025 may close with flat revenues, the inherent growth drivers and emerging demands signify that stakeholders in the industry should remain vigilant and prepared for changing trends. Companies involved in this sector must strategically position themselves to leverage future growth, particularly as the anticipated demand around 5G technology gain momentum.

The Dell'Oro Group Microwave Transmission Mobile Backhaul Quarterly Report provides an extensive dive into these market dynamics, tracking important data such as revenue changes, unit shipments, and price fluctuations. For further insights and detailed analyses, interested parties can access the full report by reaching out to Dell'Oro Group directly.