Mobile and wireless backhaul technology is espoused by various IT and telecom companies in the world. The mobile and wireless backhaul helps to enhance the customer experience by distributing and managing huge data traffic on the network. The rising demand of smartphones and various connected devices is expected to inject huge growth in the global mobile and wireless backhaul market. The rising accessibility of smart phones is the major factor which is fueling the growth in the global market, in spite of huge growth in mobile data traffic and advancements in technology, which are driving the growth in the global mobile and wireless backhaul market. The rising demand of connected devices in various end user application such as smart homes, automotive industry and other industrial application is creating huge opportunities for the mobile and wireless backhaul market. The rising demand for the high bandwidth for easy excess of network data is increasing the scope of various wireless technologies such as 4G and 5G networks. In 2014, global smart phone industry was valued at $400 billion. However, there were around 171 million smart phone users in 2014 in U.S., which is expected to reach 25 million by the end of 2020. The growing demand for smart phone industry is increasing the scope of mobile and wireless backhaul market. However, around 140 million smart phones were sold across the globe in 2014, among which around 53% were of android platform. China is the biggest market of smart phones; around 390 million units were shipped in 2015 in China.
The global mobile and wireless backhaul market is estimated to be $42.24 billion by 2022 growing at a CAGR of 13.57% during the forecast period. The spectrum crisis and case-by-case examination, formerly firm dispositions are hampering the growth of mobile and wireless backhaul in the global market. The requirement of proficient technological skills is also one of the major restraints available in global market. The rising Ghz spectrum band and new 5g wireless backhaul technology are creating huge opportunities for the forecast period in the global mobile and wireless backhaul market. The rising demand for higher bandwidth is increasing the scope of 5g wireless backhaul technology.
The mobile and wireless backhaul market is segmented on the basis of services, equipment’s, and geography. Services are further segmented into network services, professional services and system integration services. The equipment’s segment is segmented into microwave or microwave equipment, millimeter wave equipment, sub-6 Ghz equipment and test and measurement equipment. The equipment segment is the largest contributor towards the growth of global mobile and wireless backhaul market. In equipment segment test and measurement equipment are the major growth drivers.
The global mobile and wireless backhaul market is driven by the presence of some of the prominent player in the market. Alcatel-Lucent, AT&T, Broadcom Corporation, Cisco Systems, Ericsson, Fujitsu, Huawei Technologies, Nokia Networks and Ruckus Wireless are some of them. The mergers, acquisition, innovation, product development are the key strategies adopted by key players to sustain into competitive market. March 4, 2016, Cisco acquired Leaba semiconductors, with the aim to advance in the innovation strategy and support. The acquisition also assists in development of next generation product portfolio. March 8, 2016, Cisco acquired Synata. The acquisition helps Cisco to use synata technology to enhance and accelerate the existing search inside Cisco spark. This is talent and tech acquisition through which Synata brings their technological expertise to enhance and advance the Cisco development in cloud.
On the basis of geography, North America, Europe, Asia Pacific and RoW are the major segments. North America dominates the mobile and wireless backhaul market holding the largest market share growing with an impressive CAGR in the forecast period. The large share of North America is mainly due to increasing technological innovations done by the big players such as AT&T. The increasing strategic moves of such companies is increasing the growth in the global mobile and wireless backhaul market, innovation in technology and mergers and acquisition are increasing the market share of the key players. Asia Pacific region is growing with highest CAGR in the forecast period, followed by ROW and Europe, the high growth in Asia Pacific countries is driven by the increasing demand of smart phones within the region. In 2015, in Asia there were approximately 2.6 billion smartphone users. In 2014, Asia Pacific smart phone sales were valued at $66.3 billion, which was increased in 2015 and accounted at $76 billion. Ample technological advancements are increasing the growth of the Asia Pacific mobile and wireless backhaul market. However, the ROW region is also expected to grow with a huge pace, due to ample advancements in technology which drives the growth in the global market.