Market Size of Mobile Backhaul Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 11.14 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Mobile Backhaul Market Analysis
The Mobile Backhaul Market has registered a CAGR of 11.14% over the forecast period. The market is expected to grow steadily, owing to the proliferation of small cells and a drastic rise in mobile data traffic because of the increased number of data-capable devices and high-bandwidth applications.
- Backhaul is the transport of voice and data traffic from a radio cell site to an edge switch at the ingress/egress point of the backbone core network. Mobile backhaul's primary purpose is to gather user data and transfer it to a network, such as an academic institution, government agency, significant institution, or the internet. It can also handle and distribute massive volumes of data, significantly improving the user experience.
- The demand for connected devices such as smartphones is increasing gradually, which drives market growth. The increasing use of point-to-point microwave transport technology is also expected to drive the growth of this market due to its offerings, such as cost-effective backhauling for high-speed voice and data services. Several factors, such as the proliferation of small cells and the high penetration of smartphones, contribute to the market's growth.
- Due to advancements in digital technology and the connectivity level of the internet, with increased dependence on streaming services, 4G networks supported majorly, streaming with AR/VR, 4k/8k video, and 360-degree videos, the 5G video content is expected to be immersive and consuming a higher proportion of the overall data traffic increase the demand of the market.
- Several technological advances are taking place on LTE, known as LTE-Advanced Pro or 4.5G, which provide enhancements such as increased peak bandwidth and energy efficiency for IoT connectivity. The peak bandwidth of 4.5G is approximately 1gbps, which is 8-10x more than regular LTE and would allow mobile devices to accommodate video traffic at 4K quality, among other things. Several industry developments result in new challenges and requirements for MNO network backhaul infrastructure.
- The demand for mobile backhaul requirements saw a new trend during the pandemic due to the growing mobile data traffic and voice. Enterprises also ramped up their digital transformation efforts to combat the effects of the health crisis. With ever-growing end-user demand for video, content, and social media, and a need to work remotely, the reliance on next-generation connectivity to cope with bandwidth-heavy traffic has always been higher. After the pandemic, the market is growing rapidly with an increased number of smartphone subscriptions and internet penetration.
Mobile Backhaul Industry Segmentation
Mobile backhaul is the portion of a mobile network that connects the cellular base stations to the core network, which is subsequently connected to data centers that host the content and applications accessed by mobile users. In day-to-day life, many mobile backhaul networks are using an assortment of technologies, including fiber, copper, microwave, and millimeter-wave solutions. The market comprises deployment types, such as wired and wireless, which are part of a segment of solutions and services. The market also comprises analysis based on the geographical segment, along with the impact of COVID-19 on the overall market.
The Mobile Backhaul Market is segmented by Deployment (Wired, Wireless (Point-to-Point Network, Point-to-Multipoint Network), Type (Solution and Service), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa).
The market sizes and forecasts are provided in terms of value in USD million for all the above segments.
By Deployment | |||||
Wired | |||||
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By Type | |
Solution | |
Services |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East & Africa |
Mobile Backhaul Market Size Summary
The Mobile Backhaul Market is experiencing significant growth, driven by the increasing demand for mobile data services and the proliferation of connected devices such as smartphones. This market is characterized by the transport of voice and data traffic from radio cell sites to core network switches, playing a crucial role in enhancing user experience by managing and distributing large volumes of data. The rise in mobile data traffic is largely attributed to the growing number of data-capable devices and high-bandwidth applications, including streaming services and 5G content. Technological advancements, such as the adoption of point-to-point microwave transport technology and LTE-Advanced Pro, are further propelling market expansion by offering cost-effective and high-speed backhauling solutions. The COVID-19 pandemic has also accelerated digital transformation efforts, increasing reliance on next-generation connectivity to support bandwidth-heavy applications.
The market landscape is highly fragmented, with both global players and small to medium-sized enterprises contributing to the competitive environment. Major companies like Fujitsu Limited, NEC Corporation, Ericsson Inc., Huawei Technologies, and Cisco Systems Inc. are actively engaging in partnerships, mergers, and innovations to enhance their service offerings and maintain a competitive edge. Regional developments, particularly in Asia-Pacific, are marked by a transition to data-intensive applications and the expansion of broadband services in rural areas, driven by the high adoption of IoT and mobile devices. The demand for mobile backhaul services is expected to continue rising, supported by the increasing need for faster and more reliable internet connections and the ongoing expansion of 5G networks.
Mobile Backhaul Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Technology Snapshot
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1.5 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 Wired
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2.1.2 Wireless
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2.1.2.1 Point-to-Point Network
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2.1.2.2 Point-to-Multipoint Network
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2.1.2.3 Other Wireless Networks
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2.2 By Type
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2.2.1 Solution
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2.2.2 Services
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Latin America
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2.3.5 Middle East & Africa
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Mobile Backhaul Market Size FAQs
What is the current Mobile Backhaul Market size?
The Mobile Backhaul Market is projected to register a CAGR of 11.14% during the forecast period (2024-2029)
Who are the key players in Mobile Backhaul Market?
Fujitsu Limited, NEC Corporation, Ericsson Inc., Huawei Technologies and Cisco Systems Inc. are the major companies operating in the Mobile Backhaul Market.