Communications and Technology Industry Research

Infonetics Research (News - Alert) announced today the mobile backhaul equipment market grew eight percent to $7.4 billion in 2011, up from 10-percent growth in 2010. The increase was largely propelled by Ethernet mobile backhaul router purchases from China.

“We expect the China surge to subside in 2012, impacting the overall market,” said Michael Howard (News - Alert), principal analyst and co-founder of Infonetics Research. “Then slow, steady growth in this already-large market should resume in 2013.”

Over the next five years, Infonetics projects that over $39 billion will be spent on mobile backhaul equipment. The company also found that over 150 mobile operators are actively deploying IP/Ethernet backhaul, up from just 100 providers employing IP/Ethernet in 2009.

IP/Ethernet comprises 90 percent of all mobile backhaul spending, as companies rely on the equipment to keep down data traffic costs, accommodate the 3G mobile broadband data transition and move to IP as the basic technology of LTE (News - Alert) and WiMAX.

“Roughly 55 percent of the world’s mobile backhaul physical connections are on microwave,” said Richard Webb, directing analyst for microwave at Infonetics. “More than half of all mobile backhaul equipment revenue in 2011 came from dual TDM/Ethernet microwave and packet-only microwave equipment combined.”

While Ericsson maintained its lead in the mobile backhaul market with 22 percent of market share, Huawei (News - Alert) made more money than Ericsson or any other equipment provider in Q4 of 2011. Huawei, Cisco, Tellabs and ZTE (News - Alert) lead the fast growing mobile backhaul routers and gateway segments.

Infonetics released this information in its annual Mobile Backhaul Equipment and Services market share and forecast report. The report ranks equipment vendors, identifies growth areas and analyzes equipment, connections, cell sites and service charges. The report details regional market size, vendor market share and forecasts through 2016.

Technologies tracked in the report include PDH and ATM over PDH, SONET/SDH and WDM, Ethernet fiber and copper, DSL, PON, coax cable, microwave, TDM, Ethernet, WiMax and satellite. The source also tracks mobile backhaul activity and mobile operator backhaul strategies.

A full copy of the report is available here.