Analysis of the development trend of millimeter wave communication technology market from 2020 to 2027

In 2019, the global millimeter wave communication technology market size was US$573.3 million and is expected to usher in rapid development from 2020 to 2027, with a compound annual growth rate (CAGR) of 37.01%.

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The increasing R&D activities in millimeter wave (MMW) technology and the growing demand for bandwidth-intensive applications are expected to drive the market growth. The demand for bandwidth-intensive applications is particularly from consumer electronics and mobile devices such as smartphones and wearable electronic devices. Data-intensive services such as video streaming, video conferencing, media exchange over the Internet, and high-speed online gaming are expected to drive the demand for high bandwidth, thereby driving the demand for the adoption of telecommunication MMW technology.

In addition, the next generation of wireless communications is getting closer and closer with time. The telecommunications community is implementing a variety of technologies to accurately verify the frequencies that will be deployed for 5G. Millimeter wave is expected to be a key driver for 5G deployment. The technical requirements of 5G, such as peak data rates (i.e., peak rates above 10 Gbps, latency rates of 1 millisecond, cell edge data rates of 100 Mbps, etc.), are the driving factors for the adoption of MMW technology in the telecommunications field.

To meet the data throughput requirements of 5G services, a large amount of adjacent bandwidth above 24 GHz is required. Research and lab trials have proven that mmWave can deliver data rates of several gigabits per second. In addition, the competitive environment is giving birth to the latest innovative approaches, such as using MMW in the downlink and spectrum below 6 GHz in the uplink. As a result, through these innovative approaches, power-hungry MMW transmitters are no longer required in 5G devices, reducing costs and power consumption.

Despite the obstacles and challenges in technology adoption, the momentum and power of mmWave technology to support 5G applications is strong enough. Service providers, chipset manufacturers, network infrastructure suppliers, and stakeholders from all walks of life are working together to overcome the challenges associated with high-frequency MMW technology.

Frequency band

E-band led the communication millimeter wave technology market and accounted for more than 73.6% revenue share in 2019. The growing applications of E-band frequencies are expected to drive the growth of the segment. E-band frequencies have important applications in the telecommunication equipment sector, while V-band frequencies range between 40 GHz to 70 GHz. Millimeter waves in these frequency bands are particularly used in military and defense applications. Moreover, V-band frequencies are widely used in radar and satellite communications.

The global telecommunication industry is developing extensively across the globe and is likely to maintain rapid growth in the coming years owing to the growing demand in various applications such as consumer electronics, smart education, smart home, automation industry, etc. Therefore, E-band in the telecom MMW industry is expected to strengthen significantly during the forecast period.

application

The civil segment will lead the market, accounting for more than 84.6% of the global revenue in 2019. The civil segment includes various applications such as telecommunications, automotive and transportation, healthcare, and electronics and semiconductor applications. The growth rate of the civil segment is expected to be high in the coming years due to the increasing demand for high-speed data transmission and communication in residential and commercial sectors such as data centers and IT sectors.

The use of telecom mmWave technology in military applications is expected to grow at the fastest rate during the forecast period. The military segment is expected to grow at the fastest rate owing to the increasing adoption of MM modules and sensors in various military and defense applications. The technology has been widely adopted by international airport authorities owing to global terrorism issues. This overall scenario is expected to drive the growth of the market in the coming future.

license

Light-licensed spectrum dominates the market and accounted for over 69.35% of the global revenue in 2019. The high market share of light-licensed spectrum is attributed to its lower cost and ease of administration. The government has allocated E-band (70/80 GHz) for public use with few requirements for light-licensed. Operators can obtain these licenses quickly.

All wireless technologies use radio waves to receive and send information. The wireless spectrum is divided into two bands so many different technologies can use the radio waves at the same time. By licensing these frequencies, it helps the government ensure that wireless carriers don't interfere with each other's transmissions.

Unlicensed spectrum is also called unlicensed spectrum, which uses radio waves without any individual authorization. Many mobile operators have launched operator Wi-Fi and 4G in this spectrum range. Also, 5G technology is likely to be launched in unlicensed or light-licensed spectrum. The government auctions the fully licensed spectrum, and its owner uses it exclusively. This spectrum is a top priority for the telecom industry as it offers higher quality of service, mobility, and control.

area

North America dominated the market and accounted for more than 39.0% of the global revenue in 2019. Such a high market share in North America is attributed to the region’s tendency to adapt to modern technologies. Countries such as the U.S. and Canada are among the major adopters of emerging and new technologies. Hence, these factors are creating opportunities for telecom MMW technology in different applications. Moreover, the growing demand for carrier Ethernet services in metropolitan areas in the region is expected to drive the overall regional market.

However, the MMW technology market in Asia Pacific is expected to witness significant growth during the forecast period. Asia Pacific is expected to register a CAGR of over 42.0% during the forecast period. The rapid growth of this technology in Asia Pacific can be evidenced by the ongoing development and upgrading of its telecommunication infrastructure. Moreover, the installation of new telecommunication equipment based on mmWave technology is further expected to drive the overall market across the region.