Mobile Backhaul equipment, including routers & switches, is forecast to generate approximately $39 billion of revenue by 2019, according to leading market research firm Dell'Oro Group. The market research firm is predicting a steady growth in routers & switches through 2019.
Dell'Oro Group, however cautioned that the annual revenue growth rates will soften through the next five years and the type of equipment needed in the future will change due to changes in the mobile network architecture. This will be reflected in the increase in the demand for Layer 2 and 3 network elements as the mobile radio access network moves to a higher concentration of LTE radios.
Dell'Oro group said that the other trend that will be taking shape over the next few years is the deployment of small cells which is expected to surpass the deployment of macro cells. Since small cells have a different set of backhaul requirements than the traditional macro cells, the group anticipates a rise in demand for smaller form factor equipment at lower price points, among a number of other changes.