5G Wireless Backhaul Market Size, Share, Opportunities, And Trends By Architecture (PtP, PtMP), By Band (Sub-6 GHz, MmWave), By Deployment (Urban & Sub-Urban, Rural), And By Geography - Forecasts From 2023 To 2028

The global 5G wireless backhaul market is valued at US$589.886 million in 2022.

GROWTH DRIVERS

• Surge in 5G Small Cell Deployments

5G small cells leverage existing macro cell backhaul infrastructure, prompting mobile network operators to deploy them where backhaul is already available. Enterprises and industry sectors are adopting 5G small cells for private networks. Service providers opt for license-exempt spectrum to deliver fast connectivity to organizations and campuses, often used as wireless backhaul. This spectrum can also support small cells with wireless backhaul, avoiding regulatory spectrum approvals. With the increasing proliferation of small cells and network components, the need for scalable, cost-effective backhaul solutions is expected to drive market growth.

For instance:

• In September 2023, EnerSys unveiled its DPX Distributed Power Transport System, designed to facilitate the rapid deployment of 5G small cells, thereby speeding up the revenue generation from 5G services. This system is capable of delivering power to 5G small cells situated at distances of up to 1 mile.
• In February 2023, MaxLinear collaborated with EdgeQ to develop a versatile converged platform for 4G and 5G small cells. This partnership combines EdgeQ's innovative "Base Station-on-a-chip" technology with MaxLinear's MXL1600 RF transceiver and MaxLIN™ wideband digital pre-distortion (DPD) solution. The result is a groundbreaking software-programmable solution that empowers developers to easily and dynamically scale across various small cell applications and use cases, offering exceptional system integration, performance, and flexibility.

Wireless Backhaul Spectrum meets 5G traffic demands

The emergence of 5G is poised to greatly influence backhaul networks. With the expansion of 5G services and the growing need for mobile data, there's a substantial surge in internet traffic. Consequently, operators are compelled to enhance their backhaul networks to accommodate this upsurge. Mobile operators are now frequently pairing lower-band microwave connections with licensed or lightly licensed millimetre-wave links (such as specific E-band channels) to bolster capacity. This approach enables them to offer robust, high-capacity coverage across extended distances. The heightened capacity demand is also straining spectrum availability, creating a scarcity.

• In April 2022, Nokia achieved a significant milestone by successfully demonstrating a live microwave link utilizing the D-Band spectrum (130-175 GHz). This spectrum offers considerably greater bandwidth compared to other microwave bands and serves as an ultra-high-capacity extension for 5G backhaul and fronthaul in densely populated urban areas. Nokia's research, conducted with Nokia Bell Labs equipment, explored the potential of frequencies above 100 GHz, which can support vast channel bandwidths and transmit up to 50 times more traffic than the microwave bands traditionally employed for mobile network backhaul.
• In October 2023, according to the Ericsson 2023 Microwave Outlook report, microwave technology is evolving to address the increasing demand for 5G wireless backhaul. The report highlights that the E-band spectrum, encompassing radio frequencies from 71 GHz to 86 GHz, can effectively fulfil the backhaul capacity requirements of the majority of 5G sites up to 2030 and is already accessible for deployment in countries where 90 percent of the global population resides.

Increasing Number of Mobile Subscribers

The market growth is primarily driven by the increasing number of 5G mobile subscribers and the penetration of 5 G-enabled smartphones. The global population of active internet users is expanding rapidly, driven by increased smartphone adoption and improved connectivity. This heightened internet access has resulted in a significant rise in mobile data traffic worldwide. With the growing popularity of mobile data, there is an increased need for network bandwidth. To meet this demand for high bandwidth and deliver high-quality services, mobile operators are enhancing their data transmission methods. Consequently, the mobile and wireless backhaul market is anticipated to experience substantial growth in the near future. Consumer demand plays a pivotal role in driving the mobile and wireless backhaul market's expansion.

According to the Ericsson Mobility Report for 2023, it is projected that 5G subscriptions will reach 1.5 billion in 2023. The forecast indicates that globally, 5G subscriptions will grow to 4.6 billion by the end of 2028, accounting for over 50% of all mobile subscriptions. By 2028, 5G is expected to emerge as the primary mobile access technology in terms of subscriptions. Notably, North America has seen a more robust adoption of 5G subscriptions than anticipated, and by the conclusion of 2022, it boasted the highest 5G subscription penetration among regions.

EMERGING OPPORTUNITIES IN THE 5G wireless backhaul MARKET

Integrated Access Backhaul

IAB, known as Integrated Access and Backhaul, leverages the access spectrum to route data traffic to the core network. This technology is standardized under 3GPP Release 16 and is designed to repurpose the existing 5G radio air interface for backhaul purposes. It has gained substantial attention in the industry due to its potential for cost-effective and rapid backhaul deployment. The broader bandwidth and beamforming capabilities of 5G (applicable to both Standalone and Non-Standalone modes) can meet capacity requirements and mitigate interference risks in IAB. Additionally, IAB can lead to reduced equipment costs as it eliminates the need for separate transmitter antennas at cell sites for backhaul connections.

In December 2021, Lockheed Martin (NYSE: LMT) partnered with Radisys, a global leader in open telecom solutions, to form an enterprise agreement for incorporating Open Radio Access Network (O-RAN) software into Lockheed Martin's 5G.MIL™ products. This collaboration encompasses the development of essential features such as 5G-enabled wireless relay and Integrated Access and Backhaul (IAB).

GEOGRAPHICAL PRESENCE

In February 2023, SatixFy made a significant announcement, revealing its agreement to provide its chips to Astrome, an Indian telecommunications solutions provider. This move signifies SatixFy's foray into the terrestrial 5G market and a direct entry into the Indian market. Astrome's key focus lies in the delivery of GigaMesh, a high-capacity wireless X-haul radio designed to expedite the rollout of 5G in suburban regions and broadband access in rural areas

In April 2021, Ericsson joined forces with Deutsche Telekom and Cosmote in a collaborative effort to explore a solution for the utilization of W-band as a spectrum for 5G backhaul. During testing conducted at Deutsche Telekom's Mobile Backhaul Service Center in the Cosmote headquarters, located in Athens, the partners achieved successful validation of the feasibility of employing frequency bands exceeding 100GHz, including the W-band, to provide multi-gigabit wireless backhaul capabilities for both 5G and the forthcoming 6G technology.

MAJOR PLAYERS IN THE MARKET

Some of the Prominent market players such as Cisco, Samsung Electronics, and NEC Corporation, among others, offer a range of product offerings, including:

5G Wireless Backhaul Market Scope:

SEGMENTATION

The global 5g wireless backhaul market has been analyzed through the following segments:

• By Architecture
  • PtP
  • PtMP
• By Band
  • Sub-6 GHz
  • mmWave
• By Deployment
  • Urban & Sub-Urban
  • Rural
• By Geography
  • Americas
    • United States
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others