YOU ARE AT:BusinessOutdoor small cell backhaul market set for major growth

Outdoor small cell backhaul market set for major growth

Operators and enterprise customers are increasingly turning to small cells to provide pinpoint coverage and capacity in both indoor and outdoor settings. Specific to outdoor small cell deployments, IHS Markit tallied a 200% year-over-year growth in 2016 revenue associated with outdoor small cells. The research firm projects $5 billion will be spent globally between now and 2020 on the backhaul equipment needed to tie small cells into the larger network.

According to the biannual report, outdoor small cell backhaul connected devices will number around 700,000 units by the end of the decade. Specifically, the research found growth would be driven by “mostly modest-scale projects to augment 3G and LTE capacity in urban areas and to provide mobile coverage in rural markets.”

In terms of geographic leadership, IHS Markit sees 48% of revenues coming from the Asia-Pacific region, followed by 27% from the Middle East and Africa, 14% from the Caribbean and Latin America market, and 14% from North America.

According to Richard Webb, research director for mobile backhaul and small cells at IHS Markit noted “deployments of outdoor small cell backhaul connections are expected to grow to 109,000 in 2016, up from 35,000 in 2015. And by 2020, deployments are projected to reach 693,000 – for a total installed base of around 1.9 million. Wireless microwave makes up nearly 60% of small cell backhaul gear revenue today, climbing to over 80% in 2020 led by E-Band millimeter.”

ABOUT AUTHOR

Sean Kinney, Editor in Chief
Sean Kinney, Editor in Chief
Sean focuses on multiple subject areas including 5G, Open RAN, hybrid cloud, edge computing, and Industry 4.0. He also hosts Arden Media's podcast Will 5G Change the World? Prior to his work at RCR, Sean studied journalism and literature at the University of Mississippi then spent six years based in Key West, Florida, working as a reporter for the Miami Herald Media Company. He currently lives in Fayetteville, Arkansas.