Global Millimeter Wave Technology Market - Segmented by Type of Components (Antennas and Transceiver, Communications and Networking Components, Interface Components, Frequency Components and Related Components, Imaging Components), Licensing Model (Fully Licensed, Partly Licensed, Unlicensed), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global millimeter wave technology market was valued at USD 0.57 billion in 2017 and is expected to reach USD 4.08 billion by 2023, at a CAGR of 38.85%, over the forecast period (2018-2023). The millimeter waveband is used for high-speed wireless communication solutions. Though millimeter wave technologies are among the known industries, they are often ignored and undeveloped. However, with the rapid increase in demand for higher bandwidths and high data speeds, the millimeter wave band is growing in a wide range of applications. Further, in telecommunications, the usage of millimeter wave technology is gaining demand in a variety of mobile and wireless networks services. This demand increase owes to the ability of technology to handle high data rates (up to 10 Gbps).
The increasing number of small cell backhaul network deployments and mobile backhaul solutions in metros, with high capacities, are one of the primary reasons for the market growth. As more consumers are being introduced to the internet in the developed and developing countries, the demand for higher speeds by the existing internet users is also growing. Furthermore, the demand for higher bandwidth is expected to accelerate the overall demand for millimeter wave technology during the forecast period.
Evolution of 5G is Driving Market Growth
The increasing mobile traffic is prompting next generation cellular network research. Further, a multi-fold increase in the system rate is required in the near future for the next generation cellular networks to cater to the consumers’ data services. There are numerous projects underway to integrate the millimeter wave technology into the current cellular networks as multi-band network, to use the millimeter wave band wide spectrum. Around 7 GHz of continuous bandwidth is available, globally, at 60 GHz unlicensed bandwidth, which can be useful for the current data requirements. As the current frequencies are being used heavily and it is difficult to get more spectral bandwidth essential for 5G networks, the millimeter wave spectrum has become more important. Moreover, the communication devices produced on a mass scale to handle 5G networks and meet the growing demand for faster data transfer rates, are expected to accelerate the market.
Antennas & Transceivers Hold Lion’s Share in the Market
Antennas with smaller form factors and electronic scanning capabilities that are compatible with most of the existing communications systems are expected to occupy a major market share, due to the early years of adoption. With the evolution of millimeter wave radar, there has been a remarkable increase in the antenna developments from waveguide slot antenna to triplate antenna, microstrip antenna, etc. Several developments have been witnessed in the design and implementation of efficient and miniaturized antennas for mobile communications and radio communication equipment. There is an increased demand for efficient RF circuits and antennas to support the rapid advancements in the advanced millimeter wave systems and applications.
North America Holds the Largest Share
The North American region holds the largest share in the market, while Asia-Pacific is expected to register the fastest growth rate. The United States is the first country in the world to offer commercial use of millimeter waves in the form of E-band frequencies, thus leading the growth and adoption of MMT worldwide. The intense research, in military applications and subsequent inclusion of this technology in sonar, radar and secure military communications, is helping the country consolidate as a market leader. Canada, another major market in the North America, is actively using MMT-enabled full-body scanners in several entry points, due to its accuracy and safety comparable to the X-ray scanners. Further, the country has invested heavily in this technology to aid customers shopping for fashion accessories, which is estimated to have a positive impact on the regional market share.
Key Developments in the Market