2Q24 Microwave Transmission Further Damaged due to Slow 5G Deployment
According to a recent report released by Dell‘Oro Group, revenue from point-to-point microwave transmission equipment has been declining year-on-year for four consecutive quarters. The main reason is the slowdown in 5G deployment speed. The decline is particularly evident in the Asia Pacific region.
Dell’Oro Group Vice President Jimmy Yu stated that the microwave transmission market has been showing a downward trend since the second quarter of 2023. This downward trend is mainly due to the lack of motivation among operators around the world to quickly install 5G networks. And it results in delays and slow start-up of 5G upgrades.
Other key points in the Q2 2024 Microwave Transmission and Mobile Backhaul Quarterly Report include:
- -The microwave transmission market declined by 8% year-on-year in the second quarter of 2024, mainly due to reduced demand for mobile backhaul. Revenue related to mobile return decreased by 9% year-on-year.
- -Both long-distance and short distance markets have declined in this quarter. Due to limited demand for all indoor units (FIDUs), the long-distance market has experienced the most severe decline. Dell‘Oro estimates that FIDU revenue decreased by nearly 40% this quarter.
- -Except for the Middle East and Latin America, all regions experienced a year-on-year decline in revenue this quarter. The region with the most severe decline is the Asia Pacific region, mainly influenced by India. India’s income has decreased by 40%.
- -Four suppliers (Aviat, Ceragon, Huawei, and ZTE) achieved year-on-year growth in the second quarter of 2024.