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 2024 To 2029

The 5G wireless backhaul market is projected to witness a CAGR of 19.21% during the forecast period to reach a total market size of US$5.136 billion by 2029, up from US$2.133 billion in 2024.

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.

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 provides 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 by 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. As a result, operators have no choice but to improve their backhaul networks to support this increase. 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 all 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.

• 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 coming 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 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 transceive 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.

Market Segmentation:

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

• By Architecture
  • PtP
  • PtMP
• 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

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Bandwidth Availability

4.4. Number of Users

5. GOVERNMENT REGULATIONS/POLICIES

6. 5G WIRELESS BACKHAUL MARKET BY ARCHITECTURE

6.1. Introduction

6.2. PtP

6.3. PtMP

7. 5G WIRELESS BACKHAUL MARKET BY BAND

7.1. Introduction

7.2. Sub-6 GHz

7.3. mmWave

8. 5G WIRELESS BACKHAUL MARKET BY DEPLOYMENT

8.1. Introduction

8.2. Urban & Sub-Urban

8.3. Rural

9. 5G WIRELESS BACKHAUL MARKET BY GEOGRAPHY

9.1. Introduction

9.2. Americas

9.2.1. By Architecture

9.2.2. By Band

9.2.3. By Deployment

9.2.4. By Country

9.2.4.1. United States

9.2.4.2. Others

9.3. Europe, Middle East and Africa

9.3.1. By Architecture

9.3.2. By Band

9.3.3. By Deployment

9.3.4. By Country

9.3.4.1. United Kingdom

9.3.4.2. Germany

9.3.4.3. Others

9.4. Asia Pacific

9.4.1. By Architecture

9.4.2. By Band

9.4.3. By Deployment

9.4.4. By Country

9.4.4.1. China

9.4.4.2. Japan

9.4.4.3. South Korea

9.4.4.4. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. Huawei Technologies Co., Ltd.

12.2. Telefonaktiebolaget LM Ericsson

12.3. Siae Microelettronic

12.4. Samsung

12.5. NEC Corporation

12.6. Cisco Systems, Inc.

12.7. RAD

Huawei Technologies Co., Ltd.

Telefonaktiebolaget LM Ericsson

Siae Microelettronic

Samsung

NEC Corporation

Cisco Systems, Inc.

RAD