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 increase in the number of data-capable devices and high-bandwidth applications.

- 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 high penetration of smartphones, contribute to the market growth.

Key Market Trends

Growing Demand for Smartphones and Connected Devices Boosts the Market

- Mobile networks are being developed to respond to the growing broadband usage. Mobile data services are well on their way to becoming a necessary requirement for network consumers. Backhaul service portfolio gives operators direct access to innovation and quality. The benefits of backhaul services are the ability, accessibility, and increasing speed of data for smartphone users.

- Globally, a significant rise in the use of connected devices, owing to the high adoption of IoT, is expected to drive the market for mobile backhaul. Mobile data traffic is expected to increase rapidly during the forecast period. Around 40% of the mobile data traffic is expected to originate from the residential and domestic use, and 25% from businesses and corporate environments.

- The consumers continue to demand faster and more reliable internet connections, as video becomes more embedded in social media applications, and consumers increasingly watch TV online. The carriers may continue to invest in their infrastructure to improve the user experience and maintain, or attempt to grow, the market share.

Asia-Pacific may Continue to be the Fastest Growing Market

- The increased penetration of smartphones and the rise in data traffic are contributing to the market growth. There is a high demand for mobile backhaul in China, which is one of the primary reasons for this region to have a significant share in the market.

- Major initiatives in the emerging economies in the Asia-Pacific region are likely to increase investments in mobile backhaul solutions, as there is a huge demand for managing old infrastructure and assets.

- The presence of multiple semiconductors and mobile device manufacturer has assisted the market, as the adoption and penetration of smartphone and mobile devices in the region have been high. Additionally, it has also allowed the supply chain presence in the region to complement the market. The ecosystem present to support the market has allowed the market to remain as a fast-growing market.

Competitive Landscape

The mobile backhaul market is a fragmented market, with the presence of several big and small players. Many small players have expertise in certain functionalities, like system or network integration, but are not big enough to provide the entire spectrum of mobile backhaul solutions. The market has had several recent developments, some of which are listed below: -

- May 2019 - Aviat Networks Inc., announced a five-year global supplier frame agreement with Ooredoo. Ooredoo is trying to leverage Aviat's solutions to lower overall expenses, while ensuring high availability and very high bandwidth connectivity for mobile backhaul and fixed internet connectivity.

- January 2019 - Fujitsu Network Communications Inc. and BridgeWave Communications announced the signing of an agreement for Fujitsu to supply and support BridgeWave wireless backhaul systems, as part of Fujitsu’s end-to-end transport solutions portfolio.

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