Wednesday, June 10, 2015

IHS: Microwave Equipment Sales Decline in Q1

The global microwave equipment market totaled $1.2 billion in the first quarter of 2015 (1Q15), a 9 percent sequential decline as operators continued to be cautious with spending, according to the IHS Infonetics Microwave Equipment report.


Some Highlights:

  • Microwave equipment revenue has been trending downward for the last few years due to pricing pressure and competition from fiber-based backhaul solutions
  • Backhaul comprised 85 percent of microwave equipment revenue in 1Q15, while transport made up 8 percent and access 7 percent
  • From a technology perspective, the dual Ethernet/TDM and all-Ethernet segments dominated microwave sales in Q1
  • EMEA and Asia Pacific again led in microwave equipment revenue, together combining for 81 percent of global share
  • Most microwave gear manufacturers reported decreased quarter-over-quarter results in 1Q15

“While some seasonality in the first quarter is typical, the microwave market was a little softer than usual in the first quarter as operators kept a tight rein on capex. On the plus side, the market did grow 15 percent from the year-ago first quarter,” said Richard Webb, research director for mobile backhaul and small cells at IHS. “In the long term, new shoots of growth from LTE/LTE-A backhaul upgrades and small cell deployments will give the market a boost, driving it back to revenue growth beginning in 2017."

http://www.infonetics.com/pr/2015/1Q15-Microwave-Equipment-Market-Highlights.asp