SOURCE: Infonetics Research

Infonetics Research

September 08, 2011 18:45 ET

Infonetics Research: Ericsson, NEC, Huawei now within 1 market share point of each other in microwave market

LONDON--(Marketwire - Sep 8, 2011) - Market research firm Infonetics Research today released excerpts from its second quarter (2Q11) Microwave Equipment vendor market share and forecast report, which tracks high- and low-capacity Ethernet, hybrid, and TDM microwave equipment used in backhaul, transport, and access networks. The report now includes analysis and forecasts of microwave equipment by spectrum frequency band, from 1 GigaHertz (GHz) to 59.9 GHz.

ANALYST NOTE
"Over the last 18 months, Huawei increased their quarterly microwave equipment revenue by over 90%, which now puts them within about a point of market share from perennial leaders Ericsson and NEC as of the second quarter of 2011. Huawei's most recent revenue surge firmly establishes them as the #3 microwave equipment player in the world. Their success can largely be attributed to the considerable amount of higher-spectrum microwave gear they sell, particularly 23- and 38-GHz equipment, and to leveraging their contracts with their mobile RAN and optical equipment customers," observes Richard Webb, directing analyst for microwave at Infonetics Research.

MICROWAVE EQUIPMENT MARKET HIGHLIGHTS

  • The overall microwave equipment market edged up 2.4% in 2Q11 over 1Q11, to $1.3 billion worldwide, as price erosion across most microwave market segments ate into revenue gains in Ethernet and hybrid TDM/Ethernet microwave gear
  • As carriers seek to accommodate traffic growth on their 3G networks and prepare for 4G/LTE service launches, the need for enhanced mobile backhaul bandwidth will continue to drive the Ethernet microwave equipment market
  • In preparation for the expected need for denser on-the-street cell topologies in 4G networks, small cell backhaul solutions are already coming to the microwave equipment market, sporting all-outdoor 'zero footprint' lower power form factors
  • Microwave equipment vendors are emphasizing new higher-capacity products, with several vendors now claiming 1G+ capacity links
  • Between 2011 and 2012, global shipments of Ethernet microwave radio equipment are forecast to double, while TDM microwave gear will continue its inexorable decline, and the decline of hybrid TDM/Ethernet microwave gear will accelerate
    • Revenue from Ethernet microwave equipment surpassed that of TDM microwave in 2010, and is expected to overtake hybrid TDM/Ethernet microwave equipment by 2014
  • The sharpest growth in microwave equipment spending will come from North America between 2011 and 2015

SALES

For related and upcoming research, see MOBILE BACKHAUL AND MICROWAVE on Infonetics' portal (http://www.infonetics.com/login), or follow the links below.

RELATED RESEARCH
Download report prospectuses, tables of contents, highlights, etc., at http://www.infonetics.com/login (see MOBILE BACKHAUL AND MICROWAVE).

UPCOMING RESEARCH

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Contact Information

  • Lead Analyst:
    Richard Webb
    Directing Analyst - WiMAX, Microwave, and Mobile Devices
    Infonetics Research
    +44 (0) 1689.851.618
    +1 (408) 583.3369
    Email Contact