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 2025 To 2030

5G Wireless Backhaul Market Size:

The 5G wireless backhaul market is projected to reach US$5.737 billion by 2030, growing at 15.98% CAGR from a valuation of US$2.734 billion in 2025.

5G Wireless Backhaul Market Highlights:

• Fiber-optic networks dominate due to high-capacity, low-latency 5G backhaul requirements.
• Small cell deployments surge to support dense urban 5G network infrastructure.
• Cloud-based backhaul solutions gain traction for scalability and cost efficiency.
• Microwave backhaul remains critical for rapid deployment in rural areas.

5G Wireless Backhaul Market Trends:

The 5G wireless backhaul market is the industry that offers wireless technology solutions, such as microwave, mmWave, or satellite, to connect 5G base stations, like cell towers or small cells, to the core network. As 5G is increasingly rolling out globally, the demand for super-fast speed and low latency, along with cost-effective solutions, is growing rapidly, driving the 5G wireless backhaul market.

The 5G wireless backhaul market is expected to witness progressive growth due to rapid network expansion, dense network deployments, and a rise in global mobile data traffic. For certain IoT and industrial applications, the low-latency requirement of 5G wireless networks can be met only when they offer reliable and responsive connectivity via appropriate backhaul infrastructure. These applications often require network optimization.

Moreover, the latest technologies, such as millimeter wave spectrum and beamforming, are more focused on providing higher-capacity backhaul solutions that offer the low latencies needed for many 5G applications. Wireless backhaul solutions are also cost-effective as they provide an alternative to extremely expensive fiber optic cables. Diverse network management and automation can optimize affordable wireless backhaul.

The 5G backhaul has the potential to deliver ultra-high-speed, low-latency, and secure broadband experiences while acting as a platform for AI-driven services, cloud computing, and massive IoT deployment. A report by GSMA Intelligence highlights that while fiber infrastructure deployment is expanding, wireless backhaul will continue to dominate the MENA region due to its lower cost and faster deployment. It is expected to account for over 60% of backhaul infrastructure in MENA by 2025. The relatively low deployment cost and quick time-to-market are key drivers that will continue to support sustained investments in wireless backhaul solutions.

The growing 5G rollout and increasing demand for mobile data traffic are the key factors driving the market expansion. Mobile data traffic is rising rapidly worldwide, fueled by increased smartphone use, video streaming, and IoT applications. The global mobile network data traffic is estimated to reach 473.22 EB per month by 2030 from 165.67 EB in 2024.

At the same time, the 5G share in data traffic is also growing. The Ericsson Mobility Report highlights that 5G’s share in the mobile data traffic is estimated to reach 34% by the end of 2024, a 25% increase from the end of 2023. It is further estimated to reach an impressive market share of 80% by 2030. This exponential rise in data traffic and 5G strong demand will significantly drive the demand for high-speed, low-latency 5G connectivity, thereby accelerating the 5G wireless backhaul market growth.

According to a 5G Microwave Report, about 38% of all global telecom sites will be connected to the rest of the network via wireless backhaul by 2025. A 38% share globally implies millions of base stations will rely on wireless links, especially in urban, suburban, and remote/rural areas. There would be more exceeding growth in emerging markets such as MENA and Southeast Asia. Despite the parallel growth in fiber networks, wireless solutions offer various advantages in cost-efficiency, deployment speed, and flexibility; thus, Operators must prioritize spectrum planning and equipment upgrades to handle the data volumes and latency expectations of 5G over wireless transport.

Technological innovation also drives this market’s growth. Innovative products and technologies are transforming the 5G wireless backhaul market to meet 5G’s high-capacity, low-latency demands, such as development in mmWave and E-band solutions. There are advancements in microwave technology, such as MIMO innovations. There is increasing integration of AI and machine learning into backhaul equipment. In 2022, SIAE Microelettronica and Deutsche Telekom Group conducted a field trial at Cosmote in Greece of ALFOplus80HDX, a commercially available E-band microwave radio system designed to extend the reach of standard E-band links. It achieved a 10 Gbps capacity over a 5 km distance, significantly longer than typical E-band links.

5G Wireless Backhaul Market Drivers:

• The growing surge in 5G small cell deployments is expected to increase the demand for 5G wireless backhaul globally.

The 5G small cells exploit their existing macro cell backhaul infrastructure, prompting mobile network operators to deploy them where backhaul is already available. This is also helping businesses and industry verticals to configure their local private networks with 5G small cells. Service providers choose license-exempt spectrum for fast links back to organizations and campuses. For instance, in September 2023, EnerSys launched its DPX Distributed Power Transport System to accelerate the roll-out of 5G small cells and realize the associated increase in revenues from 5G services. The system can deliver power to 5G small cells as far as 1 mile away.

In addition, it could also deploy small cells with wireless backhaul on this spectrum without any need for complex regulatory approvals. Small cells and network elements such as remote radio heads are growing to support this requirement, driving market growth due to the need for scalable, cost-effective backhaul solutions.

• The increasing 5G traffic is anticipated to drive the 5G wireless backhaul market growth.

With the rollout of 5G services and the demand for mobile data increasing rapidly, internet traffic is exploding. They create a large demand for high-capacity, low-latency connections between the core network and access points. Telecom operators are rushing to set up 5G infrastructure, especially in urban and suburban areas. This has made the need for effective and scalable backhaul solutions critical. Unlike earlier generations, 5G requires a denser network of small cells and base stations. All these must be linked with strong backhaul connections to manage the increase in data volume and the expectation for ultra-fast speeds. Mobile operators often seek to increase capacity by utilizing lower-band microwaves for longer links and licensed or lightly licensed millimeter-wave (e.g., narrow E-band channels) to enhance capacity. These systems allow them to provide strong and high-bandwidth coverage across long distances.

 For instance, in October 2023, Ericsson’s 2023 Microwave Outlook report stated that improved microwave technology is emerging in response to growing demand for 5G wireless backhaul. The report also highlighted that the E-band, which covers a swath of radio frequencies from 71 GHz to 86 GHz, can adequately serve as backhaul capacity for most sites up through 2030. These spectrums are already available for deployment in nations representing 90% of the global population.

Similarly, in April 2022, Nokia hit a major milestone after demonstrating a live microwave link using D-Band spectrum (130-175 GHz). Featuring more spectrum than other previous microwave bands, this ultra-high-capacity extension serves as a backhaul and fronthaul for 5G macro sites and urban hotspot areas with very dense traffic needs at 5G. Nokia’s work looked at bands above 100 GHz, using Nokia Bell Labs equipment, accommodating large channel bandwidths and serving up to 50 times more traffic than the microwave bands typically used for mobile network backhaul could be applied.

In line with this, by the end of the fiscal year 2023, the central government in Japan aimed for 5G mobile networks to have reached 95% of the population. In its most recent infrastructure development plan, released in March 2022, the telecommunications ministry set a new goal to make 5G wireless broadband rates available throughout the nation.

The percentage of the population with 5G coverage at the end of 2020 was under 40%. Based on the plan, the ministry intends to boost it to:

• 95% by 2023,
• 97.5% by 2025, and
• 99.5% by 2030

To assist in achieving its objective, the ministry has committed to providing 5G access to more wireless spectrum. It intends to provide three times greater spectrum access to the country’s telecommunications providers for their high-speed systems. The ministry also intends to build five to seven sizable data centers in regional locations in around five years and to extend fiber-optic networks to reach 99.9% of residences by 2027.

The global push for 5G is changing the telecom landscape and directly impacting the backhaul market. As networks keep evolving toward ultra-low latency, high speed, and support for many devices, wireless backhaul solutions will be essential in supporting these features. This is especially true in areas where urban density meets suburban sprawl.

• An increasing number of mobile subscribers is predicted to promote the 5G wireless backhaul market.

Market growth is driven mainly by the rise in 5G mobile subscribers and 5 G-enabled smartphone penetration. The total number of people actively using the internet worldwide is growing considerably, spurred by more smartphones and better connectivity, contributing to the market expansion. This connectivity helped increase mobile data traffic on a global scale. Mobile data use is on the rise, and as a result, there is more demand for network bandwidth.

Further, operators aiming to deliver high-capacity and quality services are enhancing their data transmission methods. They target commoditized solutions in this market that enable them to transmit 5G traffic with a low return on investment (ROI) approach. As a result, the mobile and wireless backhaul market is expected to grow significantly in the future. Demand from consumers has been a crucial factor fueling the market’s growth.

According to the Ericsson Mobility Report for 2023, 5G subscriptions reached 1.5 billion. The forecast indicates that 5G subscriptions will grow globally, accounting for over 50% of all mobile subscriptions by 2028. By 2028, 5G is expected to emerge as the primary mobile access technology for subscriptions. Notably, North America has seen a more robust adoption of 5G subscriptions than anticipated, and by the end of 2022, it boasted the highest 5G subscription penetration at 41% among regions.

5G Wireless Backhaul Market Emerging Opportunities:

• Integrated Access Backhaul

IAB (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 designed to repurpose the 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 reduce equipment costs by eliminating the need for separate transmitter antennas at cell sites for backhaul connections.

5G Wireless Backhaul Market Segment Analysis:

• The urban and suburban segment is expected to grow substantially

The 5G wireless backhaul market for urban and suburban areas is growing rapidly as telecom operators and governments seek high-speed, low-latency connections to support new services. Backhaul connects the core network to small cells or base stations. With 5G requiring denser network setups, especially in cities, wireless backhaul technologies such as millimeter wave (mmWave), microwave, and sub-6 GHz are essential. Urban areas require high-capacity, low-latency solutions to manage dense mobile traffic and support emerging applications like autonomous vehicles, smart infrastructure, and large IoT deployments.

The U.S. 5G network infrastructure market is driven by growing demand for high-speed connectivity, IoT expansion, and industry-wide digital transformation. For instance, according to GSMA, the penetration of 5G networks in the United States is estimated to reach 94% by 2030. Additionally, significant government initiatives and private investments further accelerate its deployment.

Additionally, according to the Ericsson Mobility Report, November 2024, 5G subscriptions across the region, including India, Nepal, and Bhutan, are predicted to account for over 27 crore by the end of 2024, reaching 23 percent of total mobile subscriptions. In 2030, this will rise to 97 crore and constitute 74 percent of all mobile connections in the region.

In urban settings, mmWave and microwave backhaul solutions are popular because they deliver high throughput over short distances, which fits with the close arrangement of small cells in cities. However, there are challenges like line-of-sight (LOS) issues, spectrum licensing, and high infrastructure costs. To overcome these problems, hybrid fiber-wireless backhaul models are being used, helping operators maintain a balance between cost and performance. Free Space Optics (FSO) and Optical Wireless Communication (OWC) are also gaining popularity where fiber deployment is impractical or too costly.

In suburban areas, the 5G backhaul approach prioritizes coverage over capacity. Microwave and sub-6 GHz solutions are common since they can transmit over longer distances with fewer line-of-sight restrictions, making them suitable for more spread-out infrastructure. Although data demands are not as heavy as in urban centers, the need for reliable connectivity to support remote work, digital services, and growing smart community projects is driving investment in suburban wireless backhaul. These deployments face fewer regulations and offer more flexible site options compared to busy urban areas.

Looking ahead, the 5G wireless backhaul market will evolve swiftly with the introduction of software-defined networking (SDN), network function virtualization (NFV), and AI-based traffic management. Urban markets will lead in adopting high-frequency and optical wireless backhaul technologies, while suburban areas will keep expanding with cost-effective microwave and hybrid models. Government-led smart city projects and 5G infrastructure rollouts are likely to speed up market growth in both settings, making wireless backhaul a key part of future digital infrastructure.

By 2024, Japan will have considerably developed its 5G ecosystem based on previous steps to increase nationwide coverage, improve cybersecurity, and drive industry-specific use cases such as smart factories, healthcare, and agriculture. The government has remained consistent in offering low-interest loans and tax breaks to companies working on securing 5G and drone technologies, while tightening cybersecurity standards and lowering dependence on high-risk vendors such as Huawei and ZTE.

Japan has focused on manpower development, overseas cooperation, and the use of Open RAN technology to diversify its supply base. Japan also established the basis for 6G technology by implementing a proper roadmap and meaningful R&D inputs, with commercial 6G networks expected by 2030. All of these activities stem from Japan's desire to lead in technology to become economically secure and protect itself against competitive pressures, including those from China.

Furthermore, ISED is consulting from March 06 to June 04, 2025, on a millimeter wave spectrum in the 26 GHz and 38 GHz bands for an upcoming spectrum auction. This would include the rules of the auction, competitive measures, and deployment conditions, as well as whether additional spectrum should be made available for non-competitive local licensing.

5G Wireless Backhaul Market Key Developments:

• February 2023- EdgeQ and MaxLinear partnered to develop a Unified 4G and 5G Small Cell Platform. The partnership combines EdgeQ's revolutionary "Base Station-on-a-chip" technology with MaxLinear’s MXL1600 RF transceiver and MaxLIN™ wideband DPD solution.
• February 2023- SatixFy collaborated with Indian telecommunications solutions provider Astrome to develop the 5G GigaMesh 2.0 terrestrial backhauling product. This is SatixFy's first foray into the terrestrial 5G market with a direct presence in the Indian market. GigaMesh, a wireless X-haul radio for high capacity, is planned to assist in deploying 5G in suburban regions where the availability of dark fiber is limited and provide delivery of broadband access to rural areas.

List of Top 5G Wireless Backhaul Companies:

• Huawei Technologies Co., Ltd.
• Telefonaktiebolaget LM Ericsson
• Siae Microelettronica S.p.A.
• Samsung Electronics Co., Ltd.
• NEC Corporation

The 5G wireless backhaul market is segmented and analyzed as below:

• By Architecture
  • PtP
  • PtM
• By Band
  • Sub-6 GHz
  • mmWave
• By Deployment
  • Urban & Sub-Urban
  • Rural
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • United Kingdom
    • Germany
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others

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1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. 5G WIRELESS BACKHAUL MARKET BY ARCHITECTURE

4.1. Introduction

4.2. PtP

4.3. PtM

5. 5G WIRELESS BACKHAUL MARKET BY BAND

5.1. Introduction

5.2. Sub-6 GHz

5.3. mmWave

6. 5G WIRELESS BACKHAUL MARKET BY DEPLOYMENT

6.1. Introduction

6.2. Urban and Sub-Urban

6.3. Rural

7. 5G WIRELESS BACKHAUL MARKET BY GEOGRAPHY

7.1. Introduction

7.2. Americas

7.2.1. USA

7.2.2. Others

7.3. Europe, Middle East, and Africa

7.3.1. United Kingdom

7.3.2. Germany

7.3.3. Others

7.4. Asia Pacific

7.4.1. China

7.4.2. Japan

7.4.3. South Korea 

7.4.4. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Huawei Technologies Co., Ltd.

9.2. Telefonaktiebolaget LM Ericsson

9.3. Siae Microelettronica S.p.A.

9.4. Samsung Electronics Co., Ltd.

9.5. NEC Corporation

9.6. Cisco Systems, Inc.

9.7. RAD Data Communications Ltd.

9.8. Nokia Corporation

9.9. ZTE Corporation

9.10. Ceragon Networks Ltd.

Huawei Technologies Co., Ltd.

Telefonaktiebolaget LM Ericsson

Siae Microelettronica S.p.A.

Samsung Electronics Co., Ltd.

NEC Corporation

Cisco Systems, Inc.

RAD Data Communications Ltd.

Nokia Corporation

ZTE Corporation

Ceragon Networks Ltd.