Dell’Oro Group predicted mobile backhaul transport equipment revenue will reach $24.5 billion from 2024 to 2028, but the near-term forecast has been revised downward by 6 per cent due to slow 5G rollouts.

Jimmy Yu, VP at Dell’Oro, stated operators’ 5G rollouts have dramatically slowed in the short-term while others are delaying their deployments.

He explained Dell’Oro believes operators will eventually launch 5G to its fullest potential, but the build cycle will be more gradual and calculated.

“Thus, we have transplanted the reduction in mobile backhaul demand forecasted in 2024 and 2025 to the outer years of the forecast time period, creating a more moderate rise in demand over the next five years,” Yu stated.

The research company foresees demand for mobile backhaul equipment, which includes wireless and fibre systems, growing at a five-year CAGR of 13 per cent.

According to Dell’Oro, wireless backhaul is projected to grow at a higher rate than fibre because more mobile radio deployments are expected to take place in countries that mostly use point-to-point microwave transmission systems for backhaul.