Two reports from IHS Markit detail the market values and growth trends for mobile backhaul equipment and the small cell backhaul segment in 2016. The overall mobile backhaul equipment market was valued at $8.2 billion, while the small cell backhaul segment accounted for just over $148 million. Although smaller in absolute value, the small cell backhaul market is rapidly scaling up because deployments are expanding across a wide range of locations.
The report “Macrocell Mobile Backhaul Equipment Market Tracker” describes the mobile backhaul equipment market as mature, with active competition among large integrated vendors as well as specialist suppliers of varying sizes. In this established market, innovation and differentiated solutions remain important for vendors seeking market share.
In 2016, more than 63,000 outdoor small cell backhaul connections were deployed. IHS Markit projects that this figure will grow substantially to nearly 560,000 by 2021. Even as early as 2017 the market for small cell backhaul equipment was showing steady growth. Several historical challenges—such as securing reliable backhaul connections and power, limited spectrum availability, and higher deployment costs—are gradually being addressed. As those barriers erode, operators are increasingly pursuing a mix of in-building and outdoor small cell deployments alongside other strategies to increase network density.
The IHS Markit report focused on the small cell segment, “Outdoor Small Cell Mobile Backhaul Equipment Market Tracker,” identifies Ethernet over fiber as the most likely dominant technology for in-building small cell backhaul by 2019. Ethernet over fiber is favored for its capacity, low latency, and scalability, making it suitable for the growing density and performance demands of small cell deployments inside buildings.
Industry collaboration is also progressing to support smart-city and smart-building initiatives. Recently, the Small Cell Forum (SCF) and the Telecommunications Industry Association (TIA) signed a Memorandum of Understanding to collaborate on technical, commercial, and regulatory solutions that address the challenges of smart communities and intelligent buildings. This partnership aims to accelerate deployment and interoperability by aligning standards and best practices across the ecosystem.
As operators, vendors, and standards bodies converge on practical solutions for backhaul and small cell deployment, the market outlook points toward continued growth. The combination of faster, more cost-effective backhaul technologies, clearer regulatory frameworks, and closer industry cooperation will enable broader small cell adoption—helping networks deliver higher capacity and better coverage in urban environments, indoor venues, and other high-demand locations.