The global millimeter wave technology market size is expected to be worth USD 0.51 Billion in 2023. It is expected to grow at a CAGR of 35.2% from 2023 to 2028 and reach a value of USD 2.30 Billion by 2028.
Global Millimeter Wave Technology Market Drivers:
The major factors driving the growth of the market include the rise in demand for smart driver’s assistant cars, increasing demand in defense and security systems, aerospace, and military to establish communications between places, increase in need for high-internet speeds due to the development of a wide range of mobile applications that consumes vast amounts of data.
One major factor propelling the millimeter wave technology market is the expanding use of MW technology in backhaul networks to handle the increasing volume of data traffic. On the other hand, the desire for faster speeds and a rapid increase in data consumption are posing problems for traditional wireless networks. So, by offering high-bandwidth wireless backhaul connections that provide effective data transfer between base stations and core networks, millimeter wave technology presents a workable option. Hence, millimeter wave technology is being adopted by telecom operators to meet the capacity and performance requirements of their networks, which is expected to drive significant market growth.
Rising government initiatives for the development and increasing adoption of millimeter wave technology are primarily driving the growth of the millimeter wave technology market. For Instance, in December 2023, more than 2 million Euros of funding was announced by the Spanish government for the development of 6G, next-generation technology, and academic research. In addition to this, the money will be used to set up labs, manufacture equipment, acquire millimeter wave band signal generating equipment, and integrate 5G and 6G with low-Earth orbit satellites. The growth of the millimeter wave technology market is also driven by the emerging applications in 5G and 6G connectivity, vehicle radar, and healthcare imaging.
Global Millimeter Wave Technology Market Restraints:
The factor restricting the growth of the millimeter wave technology market is limited penetration. Millimetre waves are unable to penetrate most of the materials deeply due to their shorter wavelengths. For Instance, according to research on building materials, the reduction varied between 1 and 6 dB/cm, and penetration losses through brick walls at 70 GHz may be five times more than at 1 GHz. This significantly affects the market from moving forward. The cost and integration challenges faced by the companies are further hindering the global market growth. Many companies find it difficult to incorporate millimeter wave technology into IoT devices, communication systems, etc, in a cost-effective manner. This increases the production cost and also affects its performance.
Global Millimeter Wave Technology Market Opportunities:
The use of artificial intelligence with millimeter wave technology will create more opportunities for the millimeter wave technology market. Artificial intelligence and machine learning can improve the design, efficiency, and configuration of circuits. Like, AI-enabled millimeter-wave circuit design is transforming the field of semiconductor research and propelling progress in the design and manufacturing of chips in the United States. The need for high-performance waveguides will rise, and developments in waveguide technology, such as the use of metamaterials and photonic bandgap waveguides, will enhance the efficiency significantly and create new opportunities. Increasing demand across industries for high-resolution scanning and imaging technologies is propelling the demand for millimeter wave technology. The millimeter wave technology market is primarily driven by the increasing need for high-resolution imaging and scanning technologies in sectors including healthcare, aerospace, and military. Also, these industries are thriving because of their capability to provide accurate real-time analysis and high-quality images. Also, the use of millimeter waves and near terahertz bands will increase with 6G development, which needs improvement and development in systems and circuits with uniformity and flexibility across large bandwidths. This can be accomplished by incorporating machine learning with millimeter transmitter technology. All these advancements will further elevate the market share of millimeter wave technology.
The growing demand for the applications of millimeter wave technology in defense, military, and aerospace sectors, such as for the easy and faster exchange of information like orders and commands from one place to another with high connectivity and security with the usage of various applications like electronic warfare, radar, tactical, and satellite communications are the factors that are anticipated to create opportunities for the global millimeter wave technology market in future.
Global Millimeter Wave Technology Market Challenges:
The challenges faced by the millimeter-wave market are high fuel consumption and radiation due to increasing transmitting power to increase the range, as well as the installation of new towers and other devices, which will increase investment and maintenance costs. Also, the installation of towers may lead to deforestation as they require ample space. The toxicity of materials like GaN, InP, and SiGe, which are significant components of several materials used in circuits is highly hazardous to the environment, which is a considerable challenge to the growth of millimeter wave technology. The impact of this restraint is currently high and is expected to increase in the coming future due to the expected significant rise in the usage of Millimetre wave technology. Factors like increased dependence on the internet for media exchange, video conferencing, online gaming, streaming, and others, necessitate organizations and commercial & residential applications to have high internet speed.
The physical properties of millimeter waves present multiple challenges for the millimeter wave technology market. There are many spectrums, but they remained underutilized until recently since very few electronic components were able to produce or receive millimeter waves. Also, the most difficult issue with these high frequencies is the traveling medium; therefore, producing and receiving millimeter waves is difficult. In addition to this, due to nonlinear site circumstances, signal obstruction and distance millimeter wave frequencies may result in higher transmission losses.
Impact of COVID-19 on the global millimeter wave technology market:
COVID-19 derailed the development of millimeter wave technology, which significantly affected the market. For example, COVID-19 halted the use cases for 5G millimeter wave technology, which companies first thought expected to benefit the most from immediately. Other than this, it was also noticed that States in the US having 5th-generation millimeter wave wireless telecommunications have a significantly greater number of COVID-19-related illnesses and deaths. Long exposure to non-ionizing radiation causes microwave sickness, which is also known as idiopathic environmental intolerance, which is attributable to electromagnetic fields.
REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 to 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 to 2028 |
|
CAGR |
35.20% |
|
Segments Covered |
By Type, Frequency Band, Product Type, Application, & Region |
|
Various Analyses Covered |
Global, Regional, and country-level analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
This research report on the global millimeter wave technology market has been segmented and sub-segmented into the following categories.
Global Millimeter Wave Technology Market - By Type:
Based on type, the fully licensed frequency segment is estimated to register the highest CAGR during the forecast period. A formal licensing procedure is used to assign frequency bands within the millimeter wave spectrum in fully licensed millimeter wave technology. Telecommunications companies use fully licensed frequency millimeter waves to develop 5G networks and other vital applications. Also, it facilitates smooth integration with current cellular infrastructure, guarantees quality of service, and permits effective spectrum management.
Global Millimeter Wave Technology Market - By Frequency Band:
Based on the frequency band, the 57GHz and 300GHz segment is anticipated to hold the largest share of the global market during the forecast period due to its wide range of applications in traffic monitoring, automated cruise control, security, perimeter protection, autonomous mining and others.
Global Millimeter Wave Technology Market – By Product Type
Based on product type, the telecommunications equipment segment captured 59.4% of the global market share in 2022. Also, the telecom industry is completely transformed by the widespread use of millimeter wave technology in telecom equipment. Additionally, due to their capacity to transmit gigabits of data per second, millimeter waves are also updating fifth generation (5G) cellular communication.
Global Millimeter Wave Technology Market – By Application:
Based on application, the telecommunication segment holds the maximum share of the global millimeter wave technology market and will grow further during the forecast period. The increasing demand for high-speed data transfer and communication from residential sectors, data centers, and IT offices is responsible for the segment's rise. Furthermore, to maintain low costs and power consumption and achieve high bandwidth data transmission, 5G providers are searching for infrastructure technologies. This increased the demand for MMW technology from the telecommunications sector and contributed to the growth of that sector.
Global Millimeter Wave Technology Market – By Region:
The North American regional market is expected to hold the major share of the worldwide market during the forecast period due to the early acceptance, regulatory support, and technology developments. Many IT organizations and telecommunications firms are at the center of developing and deploying new technologies like 5G, primarily using millimeter wave technology. Another factor contributing to North America's growth in the millimeter wave technology market is the strong infrastructure for creating and implementing advanced telecommunications services along with IoT and smart city efforts.
The European millimeter wave technology market will have a significant market share in terms of technology adoption during the forecast period. The market for millimeter wave technology is primarily driven by an increase in demand for wireless communications. Furthermore, factors, including the growing need for high bandwidth in IoT and mobile devices, are propelling the millimeter wave technology market growth.
The Asia Pacific millimeter wave technology market is projected to grow at a faster rate in the coming years. Communication and infrastructure upgrades in the telecommunication industry are growing further. Furthermore, the need for millimeter wave technology because of the quick rollout of 5G in developed nations like South Korea and India is also increasing the demand for millimeter wave technology. In addition, it is anticipated that the installation of new millimeter wave-based telecom equipment will significantly accelerate market growth.
The Latin American millimeter wave technology market will witness steady growth in CAGR in the coming years. Due to current developments, ongoing research, and innovation in the telecommunications sector, communication technology is predicted to evolve in the upcoming years. Furthermore, the market is anticipated to prosper financially due to increased demand for millimeter wave technology in MDA and driverless vehicles.
The Middle East and African millimeter wave technology market will expand its share during the forecast period due to increased investments in defense and telecommunication infrastructures. Like, in August 2023, advanced 5G millimeter wave trials were conducted by the STC group in Saudi Arabia, which attained the speed of 10 Gbps.
KEY MARKET PLAYERS:
The major players in the millimeter wave technology market are E-Band Communications, LLC (US), Renaissance Electronics & Communications (HXi) (US), and Smiths Group Plc. (UK), Vubiq Networks, Inc. (US), Siklu Communication Ltd (Israel), L3 Technologies, Inc. (US), NEC Corporation (Japan), Proxim Wireless (US)
RECENT HAPPENINGS IN THE MARKET:
Frequently Asked Questions
Regulatory challenges include spectrum allocation and licensing. Safety concerns involve addressing potential health effects, as the skin absorbs millimeter waves and can cause heating effects.
Factors include the increasing demand for high-speed and high-capacity communication, the deployment of 5G networks, advancements in radar and imaging technologies, and the growth of applications in various industries.
Millimeter waves enable high-frequency, high-bandwidth communication, making them crucial for implementing 5G networks. They support faster data transfer rates and increased network capacity.
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