BANGALORE, INDIA: The worldwide microwave equipment market grew from $4.94 billion to $5.85 billion between 2008 and 2009 (up 18 percent).

Also Read: 4G WiMAX boosts packet microwave market

This is according to Infonetics Research's fourth quarter (4Q09) Microwave Equipment market size, market share, and forecast report.

Richard Webb, Infonetics Research's directing analyst for WiMAX, microwave, and mobile devices, said: "With increasing numbers of telecom carriers around the world upgrading their networks to HSPA+ and LTE, Ethernet-based microwave equipment will get a nice boost in 2010 as carriers continue investing in enhanced mobile backhaul solutions."

Following a down quarter in 3Q09, worldwide microwave equipment revenue increased three percent in 4Q09, a modest market performance in a quarter that is usually seasonally strong.

"Mobile broadband adoption by consumers and businesses continues to boom, driving operators to upgrade their backhaul provision from cell sites to the core network," adds Webb.

Ethernet-only microwave equipment revenue is forecast by Infonetics to grow at a 100 percent CAGR from 2009 to 2014.

"Although the market has been a little soft over the last couple of quarters, mobile operators cannot afford to cap investment in their backhaul networks, or they run the risk of losing customers in what are already highly competitive markets," notes Webb.

The majority of microwave equipment purchased (81 percent in 4Q09) continues to be deployed to backhaul traffic for mobile backhaul networks.

The single biggest obstacle to the continued adoption of microwave equipment as the dominant backhaul solution is spectrum availability, particularly in Western Europe.

Ericsson and NEC continue in a tight race for revenue leadership in the worldwide microwave equipment market, with Ericsson eking ahead in 2009 by a fraction of a share point.

The big mover of the quarter was Huawei, which jumped into the #3 spot in 4Q09, leap-frogging Nokia Siemens.