U.S. microwave transmission equipment market projected for 4-6% annual growth
This market analysis forecasts a 4-6% annual growth for the U.S. microwave transmission equipment sector through 2035, driven by 5G backhaul demand and government-subsidized rural broadband expansion. The report identifies a technology shift toward E-band (71–86 GHz) and V-band (57–71 GHz) frequencies to support the capacity requirements of modern fixed wireless and mobile infrastructure.
Key Takeaways
- 5G backhaul accounts for 40-50% of total equipment expenditure as of 2026.
- E-band (71–86 GHz) and V-band (57–71 GHz) radios will comprise up to 35% of new deployments by 2030.
- The BEAD program is expected to lift baseline demand by 15-25% between 2027 and 2030.
- Top four suppliers, including Aviat and Nokia, control 50-60% of the U.S. revenue share.
Why It Matters
Microwave transmission remains the primary alternative to fiber for the densification of 5G and rural broadband. The shift toward higher frequency E-band and V-band radios enables the 10-20 Gbps throughput necessary for modern mobile networks while bypassing congestion in traditional 6-11 GHz bands. For equipment vendors, the market is pivoting from hardware commodity to software-enabled services, which now command up to 20% of contract values. Watch the implementation of 'Buy America' compliance for BEAD-funded projects, as this will favor suppliers with domestic assembly facilities like Aviat Networks over international rivals.
Additional Context
The U.S. market trajectory is increasingly influenced by the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. Per Light Reading in December 2025, the program faced significant shifts as federal oversight transitioned, resulting in revised rules that prioritize cost efficiency and 'technology neutrality.' This pivot has moved the program away from its initial fiber-optic preference, potentially widening the window for microwave and satellite providers in high-cost rural areas. By mid-2026, only a handful of states like Louisiana and Nevada had seen final project approvals, though the Department of Commerce has pushed for expedited builds to meet 2030 connectivity goals. On the technical side, the Federal Communications Commission (FCC) has streamlined the light-licensing regime for the 70/80/90 GHz bands. According to a 2024 Federal Register report, these updates allow for point-to-point links to mobile endpoints on ships and aircraft, further densifying the use of these millimeter-wave bands. This regulatory flexibility is critical for 5G backhaul, especially as urban 6 GHz bands face increased interference from unlicensed devices. Per Fierce Network in June 2026, lawmakers have noted that fixed wireless remains a vital, lower-cost alternative to fiber, despite ongoing debates regarding long-term signal quality in forested or hilly terrain. Vendor performance reflects these domestic shifts. Aviat Networks reported in early 2026 that its North American revenue grew 3.2% year-over-year, bolstered by private network projects and the integration of NEC’s Pasolink business. Simultaneously, Ceragon Networks reported record quarterly North American revenue in late 2025, driven by its acquisition of E2E Technologies. These consolidated players are positioning for a multi-year replacement cycle as the first generation of E-band equipment, deployed between 2012 and 2017, nears its technical end-of-life.
Read full article at indexbox.io
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