Mobile Backhaul to Reach $9 Billion by 2016

According to a market forecast report by the Dell'Oro Group, mobile backhaul (including transport and routers and switches) is forecast to reach $9 billion by 2016. The transport piece of backhaul is expected to grow at a 2% compounded annual growth rate to $6 billion by 2016. Microwave is expected to be used to backhaul more than half of the sites. Revenue from routers and switches in backhaul is expected to grow at a 9% compounded annual growth rate to nearly $3 billion. Router and switch equipment is expected to represent 30% of the mobile backhaul market by 2016.Following the rollout of macro cell sites for coverage, mobile operators are expected to deploy micro and pico cells or small cells for capacity in metro locations. The requirements for small cell backhaul are expected to favor non-line of site solutions.