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Date: 08-03-13

Infonetics: Microwave equipment spending declined 10% in 2012

Infonetics Research has reported the global microwave equipment market totaled $1.2 billion in 4Q12, down 3% from 3Q12, and down 12% from the year-ago 4th quarter (4Q11). Microwave Equipments includes time-division multiplexing (TDM), Ethernet, and dual Ethernet/TDM microwave equipment by spectrum, capacity, form factor, architecture, and line of sight.

“The microwave equipment market ended 2012 tamely,” reports Richard Webb, directing analyst for microwave and carrier WiFi at Infonetics Research. “The expected year-end boost to quarterly revenues did not materialize, as price erosion and capex conservation combined to deliver a seasonally countertrend 4th quarter dip.”

“We expect the market trough to hang around a little while longer before renewed growth begins in late 2013,” Webb continues. “And by 2017, Infonetics forecasts the microwave equipment market to reach $5.2 billion, powered by the continuing demand for backhaul capacity at macrocell sites.”

Other findings by Infonetics:
Microwave equipment spending declined 10% worldwide for the full year 2012
The global microwave equipment market totaled $1.2 billion in 4Q12, down 3% from 3Q12, and down 12% from the year-ago 4th quarter (4Q11)
Microwave equipment spending declined 10% worldwide for the full year 2012
Showing evidence of the continuing shift to all-packet microwave, Ethernet-only equipment accounted for 14.2% of all units shipped in 4Q12
Ericsson, Huawei, and NEC held steady at the top of the microwave equipment revenue leaderboard in 4Q12, though #4 Alcatel-Lucent closed the gap on NEC significantly, pulling to within a hair’s breadth
Meanwhile, Aviat Networks leapfrogged Ceragon to move into the #5 spot in 4Q12, cracking the top 5 for the 1st time
Alcatel-Lucent continues to lead the all-packet segment, accounting for half of all revenue

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