Millimeter Wave Technology Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Millimeter Wave Technology Market Size & Growth

The millimeter wave technology market size is projected to grow from USD 3.0 billion in 2024 to USD 7.6 billion by 2029, growing at a CAGR of 20.1% between 2024 to 2029.

The Millimeter Wave Technology Market is rapidly expanding, driven by rising demand for high-speed communication in applications such as 5G networks, automotive radar systems, and advanced imaging technologies. Key trends include the increasing integration of millimeter wave technology in telecommunications and its adoption in various industries for enhanced data transmission and improved sensing capabilities. Furthermore, the growing need for faster internet connectivity and the proliferation of smart devices are contributing to market growth. As technology continues to advance, the millimeter wave market is poised for significant development in the coming years.

The proliferation of wireless backhaul and growing adoption of 5G network, high demand for millimeter wave technology in security and radar applications , emergence of new applications in aerospace & defense industry are expected to propel the market in the next five years. However, challenges associated with physical properties of millimeter waves will likely pose challenges for industry players.

The objective of the report is to define, describe, and forecast the millimeter wave technology market share based on component, product, frequency band, license type, end use, and region.

Millimeter Wave Technology Market Forecast to 2029

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Millimeter Wave Technology Market Trends:

Driver:  Proliferation of Wireless Backhaul and growing adoption of 5G network

Millimeter wave bands offer a perfect fit for the high-capacity needs of 5G enhanced Mobile Broadband.  They provide a wireless alternative for backhaul, making them ideal for the rapidly growing number of cell sites, especially in dense urban areas. Millimeter wave (mmWave) technology is becoming more prevalent in wireless backhaul networks due to the growing need for fast internet and 5G networks. mmWave technology offers a high-capacity wireless backhaul solution. This translates to faster data transfer rates between base stations and the core network, crucial for supporting the massive data traffic generated by applications like 5G, VR, and IoT. The mobile data traffic for 5G was approximately 14 exabytes per month by the end of 2022. It is expected to increase exponentially to reach ~305.8 exabytes per month by 2029; as more 4G subscribers migrate to 5G, average mobile data traffic per smartphone will increase. It represents the mobile data that people will consume using smartphones, laptops, and many new devices by 2029. It is expected that by 2029, the majority of the data traffic will come from the 5G network.

Restraint Low penetration power and harmful impact on the environment

The drawbacks of millimeter wave technology include the need for telecom operators to install more towers and other equipment in order to extend its limited range, which can also be increased by increasing transmitting power. However, this can lead to increased fuel consumption and radiation; significant space consumption by transmission towers also contributes to large-scale deforestation, mostly in rural areas; and several materials, including SiGe, GaAs, InP, and GaN, which are used in circuitries that work at millimeter wave frequency, are toxic and their extended use can be harmful to the environment.

Opportunities: Emergence of new applications in aerospace & defense industry

There are always new uses for millimeter wave technologies in the aerospace and defense industries. Over the next six years, satellite communication is another significant application that is anticipated to increase and employ unallocated E- and V-band spectrums. For safe and uninterrupted communication in the face of missile guidance systems, enemy threats, and other munition, millimeter wave is employed in a number of military applications. A number of military agencies, such as the Defense Advanced Research Projects Agency (DARPA) and the Air Force Research Laboratory (AFRL), have entered the millimeter wave technology sector as a result of the paucity of unallocated spectrum in microwave frequency. With innovations such as 5G and satellite communication backhaul on the rise, connectivity, bandwidth, and speed are becoming more important for the defense sector. Thus, millimeter wave-based products can play an important role in the defense sector.

Challenges: Challenges associated to physical properties of millimeter waves

Millimeter waves offer a vast amount of untapped potential due to the wide availability of spectrum in this frequency range. However, this hasn't been readily utilized because traditional technologies struggled to generate and receive these high-frequency signals.  While advancements have been made, the bigger hurdle lies in the way millimeter waves travel. These high frequencies are significantly impacted by atmospheric conditions, open space (free-space path loss), and struggle to penetrate obstacles like foliage.  In simpler terms, millimeter wave signals have a shorter range compared to lower frequencies, even with similar power levels. This can be a challenge, particularly for applications requiring wider coverage areas. The signal properties remain constant, regardless of factors such as antenna gain at the transmitter and receiver ends or reflection, absorption, and diffraction during signal transmission.

Millimeter Wave Technology Market Map/Ecosystem

Millimeter Wave Technology Market: Key Trends.

The prominent players in the millimeter wave technology market are Axxcss Wireless Solutions (US), NEC Corporation (Japan), Ceragon (Isarel), L3Harris Technologies, Inc. (US), Aviat Networks (US),  Smiths Group plc (UK), Eravant (US), Farran (Ireland), Keysight Technologies (US), Ducommun Incorporated (US), and Millimeter Wave Product, Inc, (US), and among others. These companies boast mixing trends with a comprehensive product portfolio and strong geographic footprint.

Telecommunication equipment are expected to grow at the highest CARG in the millimeter wave technology market during the forecast period.

During the projection period, the segment with the highest CAGR and largest share is anticipated to be telecommunication equipment. The section of telecommunication equipment has been further divided into small-cell equipment and mobile backhaul equipment, which comprises all indoor and outdoor radio equipment used in macro- and micro-cell backhaul. Due to its use in backhaul applications, namely in 5G infrastructure applications, the mobile backhaul equipment sector is predicted to dominate the market. In North America, there have been a lot of research projects and trials for millimeter wave items. This is anticipated to have a big impact on the expansion of mobile backhaul equipment and, eventually, telecom equipment.

The consumer & commercial segment is expected to hold the second highest CAGR of the millimeter wave technology market during the forecast period.

Throughout the projection period, the consumer and commercial segment is anticipated to grow at the second-highest rate. The use of millimeter waves in wireless security and sensor applications—particularly in smart city applications—is covered in this segment. Commercial structures like malls, hotels, offices, sports complexes, and warehouses also use millimeter wave-based scanning systems. These types of buildings are anticipated to replace conventional body scanners with millimeter wave-based scanners because of the additional security and privacy benefits of the latter.

Millimeter Wave Technology Industry Regional Analysis

The millimeter wave technology market is expected to have a high market share in China from the Asia Pacific region during the forecast period.

The millimeter wave technology industry is prominent in the Asia Pacific region. Asia Pacific has adopted millimeter wave technology items at a faster rate than other regions. The high population density in Asia Pacific, which makes millimeter wave technology more appropriate for use in the region, is responsible for the market's rise in this area. This is because of the technology's high data transfer capacities and its non-genotoxic capacity to pass past barriers. China is one of the key markets for millimeter wave technology in Asia Pacific. It is the leading telecommunication equipment provider in this region. China-based manufacturers of telecommunication equipment are turning to the countries of South America, Southeast Asia, and Africa for business opportunities and are enhancing their share in the millimeter wave technology industry in these countries.

China was at the forefront of the millimeter wave technology market in Asia Pacific in 2023 and is likely to continue its dominance during the forecast period, in terms of market size. Huawei and ZTE have a stronghold in 5G technology with wider coverage than Nokia and Ericsson owing to their chips, terminals, systems, and specialized end-to-end 5G solutions. Moreover, the Government of China launched “Made in China 2025” to improve manufacturing competitiveness. The initiative is modeled on Germany’s “Industrial 4.0.” The country aims to strengthen its global position in the manufacturing sector, with this initiative. It is taking aggressive initiatives to upsurge the IT infrastructure, enabling commercial users to adopt cutting-edge technology.

Millimeter Wave Technology Market by Region

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Top Millimeter Wave Technology Companies - Key Market Players

Major vendors in the millimeter wave technology companies include 

• Axxcss Wireless Solutions (US), 
• NEC Corporation (Japan), 
• Ceragon (Isarel), 
• L3Harris Technologies, Inc. (US), 
• Aviat Networks (US),  
• Smiths Group plc (UK), 
• Eravant (US), 
• Farran (Ireland), 
• Keysight Technologies (US), 
• Ducommun Incorporatedb (US),
• Millimeter Wave Product, Inc, (US) and among others.

Millimeter Wave Technology Market Report Scope

Millimeter Wave Technology Market Highlights

This report categorizes the millimeter wave technology market share based on product, frequency band, license type, end use, component, and region.

Recent developments in Millimeter Wave Technology Industry

• In February 2024, Ceragon announced the plans to unveil its new lineup of industry-first innovations at Mobile World Congress (MWC) 2024. The highlights will include a Neptune SoC-based, live demonstration of Ceragon's upcoming millimeter wave technology, showcasing an unparalleled 4000 MHz channel bandwidth, 16K QAM, which when paired with XPIC and MIMO technologies, enables a mmW link capable of 100 Gbps, far surpassing competitor capabilities.
• In January 2024, Aviat Networks announced a strategic collaboration with PT Smartfren Telecom Tbk to deliver high speed, ultra-reliable wireless connectivity, private wireless indoor and outdoor networks, and industry digitalization and automation services to private networks customers across Indonesia.
• In February 2023, Cisco and NEC Corporation collaborated to include system integration solutions and potential opportunities in 5G xHaul and private 5G. This would help customers to transform their architecture and connect more people and things.

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