Millimeter Wave Technology Market Size, Share & Trends Analysis Report By Component (Antenna and Transceiver Millimeter Wave Technology, Frequency Sources and Related Millimeter Wave Technology, Communication and Networking Millimeter Wave Technology, Imaging Millimeter Wave Technology, RF and Radio Millimeter Wave Technology, Sensors & Controls, Others), By Product type (Scanner Systems, Radar & Satellite Communications Systems, Telecommunication Equipment), By License (Light Licensed Frequency, Unlicensed Frequency, Fully Licensed Frequency), By Frequency (24 GHz to 57 GHz, 58 GHz to 86 GHz, 87 GHz to 300 GHz), By Application (Telecom and Datacom, Military, Aerospace, & Defense, Automotive, Industrial, Consumer, Medical, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global millimeter wave technology market size was valued at USD 700 million in 2021 and is estimated to reach an expected value of USD 8.84 billion by 2030, registering a CAGR of 37.3% during the forecast period (2020 – 2030).

The utilization of millimeter wave electromagnetic technology allows for faster wireless broadband communications in various items, including phones, automobiles, medical equipment, and others. Because the signal spectrum it presents spans from 30GHz to 300GHz with a wavelength ranging from 1 to 10 mm, it is referred to as extremely high frequency (EHF). Additionally, millimeter wave technology offers communication transmission security.

Increased demand for imaging devices, networks, monitors, and, most notably, security has led to a growth in the use of multimeter wave technology in the healthcare and aerospace sectors. Additionally, the rise in building automation adoption and demand for millimeter wave solutions in the industrial sector provides accurate occupancy detection and tracking of individuals at a range of 14 to 50 meters. The market for millimeter wave technology is driven globally by improvements in material research, imaging systems, and process control in the industrial sector.

Market Dynamics

Market Driving Factors

Increase in Testing of 5G Technology in the US, Japan, South Korea, And China

Highly efficient infrastructure in the US, Japan, South Korea, and China, equipped with the latest technologies, demands 5G networking for its operations. This incurs vast volumes of data to be processed at high speed and low latency. The 5G network uses millimeter wave technology to deliver seamless performance in wireless communication due to its high frequency and large data carrying potential functionalities over short distances. For instance, Huawei has projected that the number of users of the 5G network will reach one-third alone in China by 2025. Therefore, demand for 5G technology in the US, Japan, South Korea, and China due to the need for high transmission frequency rates for network efficiency is a significant driver for the global millimeter wave technology market.

The Rise in Demand for Smart Devices

The advancement in wireless technologies, such as high-speed communication, high bandwidth, high-resolution videos, and carrying a large amount of data, influences the demand for millimeter wave technology due to its capability to enable a 5G network. Technological advances in digital networks connect several devices and sensors, which ensures advances in various smart technologies such as cars, smartphones, medical devices, and others. Therefore, the rise in penetration of mobile devices from consumer electronics influences the demand for a 5G network, which further increases the need for millimeter wave technology globally.

Market Restraining Factors

Adverse Impact of Millimeter Wave Technology on the Environment

Rapid deployment of a 5G network is one of the critical requirements in millimeter wave technology. The 5G network uses high band frequencies for faster communication, that is, millimeter wave technology. But, being a limited range, it can be blocked by buildings or walls. Moreover, it gets affected by atmosphere pollutants and interfered with the presence of electrical towers, which is harmful to humans, wildlife, and trees. 5G network is in developed countries such as the U.S., Germany, Canada, and France, which inevitably increases demand for millimeter wave technology and proves harmful to humans, animals, and the environment. Such factors hamper the market growth.

Global Millimeter Wave Technology Market Opportunities

Increase in Usage of Millimeter Wave Technology in Military and Defense Sector

Various enhanced applications are being used in military & defense sectors, such as radar, electronic warfare, and satellite communications. These applications will need millimeter wave technology to provide commands, military intelligence, and orders from one place to another in combat scenarios. The high-frequency range is the reason behind the deployment of millimeter wave technology in military & defense applications. Due to that, millimeter wave technology can easily cover a range of radar and satellite communication segments,

i.e., 18-40 GHz. Moreover, millimeter wave technology provides a faster, secure exchange of information and connectivity during tactical communications. Among all other sectors, military and defense are among the highest growing sectors in the millimeter wave technology market. Therefore, investment growth toward military & defense infrastructure is expected to provide a significant opportunity to implement millimeter wave technology.

Regional Analysis

By Region, the global millimeter wave technology market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific was the highest revenue contributor and is estimated to grow a CAGR of 42%. This region has seen a rapid surge in implementing 5G networks for speedier access to data, phones, and other products and services. The market for millimeter wave technology is expanding due to the rising need for high-speed networks to access smart applications on a commercial and household level.

North America is the second largest region. The North American millimeter wave technology market is projected to reach an expected value of USD 1700 million by 2030, growing at a CAGR of 30.7%. The North American compound semiconductor market is at a growing stage. North America is expected to hold a dominant position in the millimeter wave technology market, owing to the availability of advanced technologies in the region and significant players operating in the market. The region has major players offering cutting-edge solutions, which is expected to propel the market growth. Market leaders in the telecom industry, such as AT&T, Ericsson, T-Mobile, and Qualcomm, are investing considerable costs in developing 5G technology. The rise in demand for 5G technology in this region is also expected to drive the growth of the millimeter wave technology market during the forecast.

Europe is the third largest region. Europe is deploying 5G infrastructure in both private and public sectors, which will help boost the growth of the millimeter wave technology market. In the UK, three frequency bands are allocated for commercial millimeter wave utility, including 57-66 GHz, 71-76 GHz, and 81-86 GHz. The development of 5G in Europe is essential due to several expanding variables. For instance, government agencies like the European Commission always aim to advance 5G by allocating more spectrum and focusing on implementing infrastructure. Additionally, European nations like Germany, France, and Denmark are among the top countries in digital consumer engagement and the rate at which new technologies are adopted. Moreover, the rapid increase in sales of high-end cars promotes the use of 5G technology in Europe, which drives the market's growth.

Segmental Analysis

The global millimeter wave technology market is analyzed into product type, license type, frequency band, application, and region.

By Component, the global market is segmented into antenna and transceiver millimeter wave technology, frequency sources and related millimeter wave technology, communication and networking millimeter wave technology, imaging millimeter wave technology, rf and radio millimeter wave technology, sensors & controls and others.

The antenna and transceiver components segment was the highest contributor to the market and is estimated to grow at a CAGR of 37.5% during the forecast period. In the telecommunications infrastructure, millimeter wave radio lines are regarded as an essential backhaul solution, primarily used for cellular wireless access. 5G technology is planned to support various services that offer high-speed, large-capacity, low-latency, and multiple connections. It uses millimeter waves with frequency bands more than ten times greater than 4G. For instance, on January 24, 2020, NEC Corporation, a pioneer in the fusion of network and information technology, announced the creation of millimeter-wave distributed antennas for the 28GHz band of the 5G millimeter-wave spectrum. The product introduction is anticipated to establish improved user communication standards.

Based on Product Type, the global market is fragmented into scanner systems, radar & satellite systems, and telecommunication equipment. The telecommunication equipment segment was the highest contributor to the market and is estimated to grow at a CAGR of 39.7% during the forecast period. Millimeter wave technology is being rapidly adopted for users ranging from enterprise-level data centers to consumers with high bandwidth smartphones. The large adjoining bandwidth above 24 GHz is necessary to fulfill data throughput requirements for the 5G services. The research and lab trials have proved that the millimeter-wave can deliver multi-gigabit per second data rates. Besides, the competitive environment is upbringing latest innovative approaches such as using MMW in the downlink and sub-6 GHz spectrum in the uplink. Uses of the millimeter wave bands include point-to-point communications, inter-satellite links, and point-to-multipoint communications.

Based on The License Type, the global market is segregated into light, unlicensed, and fully licensed frequencies. 

The fully licensed frequency segment was the highest contributor to the market and is estimated to grow at a CAGR of 37.9% during the forecast period. A licensed frequency band operates within the portion of the radio spectrum, which will be reserved for organizations that have been granted a license to use the spectrum. For example, major mobile and telecom companies pay a licensing cost for frequency bands used in a given geographic area. Fully licensed frequency bands ensure better performance, less data traffic noise, and excellent reliability. A licensed spectrum enables the technology to send the signal ten times faster. Cellular IoT, LTE, 3G, and narrowband IoT (NB-IoT) technologies, along with the IoT, a network uses fully licensed frequency bands.

Based on Frequency Band, the global market is classified below 57 GHz, between 57 GHz & 300 GHz, and around 300 GHz. 

The 24 GHz to 57 GHz segment was the highest contributor to the market and is estimated to grow at a CAGR of 33.3% during the forecast period. The 24 GHz to 57 GHz frequency spectrum bands are primarily used for mobile radio services. With the growth in usage of Internet of Things (IoT) devices all over the world and the increase in demand for broadband services for commercial and residential industry verticals along with 5G connectivity, significant economies of the world such as the US, the UK, and Germany are shifting their focus toward 24GHz to 57GHz spectrum bands. Major industry players in networking technologies are also investing in its potential frequency bands, which are opportunistic to the market. The 24GHz to 57GHz frequency band mostly comes under licensed bands and is used for applications such as telecommunication, satellite communication, and connectivity technologies in automotive, among others.

Based on Application, the global market is classified into telecom and datacom, military & defense, automotive, industrial, consumer, medical, and others. 

The telecom and datacom segment was the highest contributor to the market and is estimated to grow at a CAGR of 34.6% during the forecast period. The telecom and datacom industry has started establishing 5G technology in different areas, which will help increase the demand for millimeter wave technology during the forecast period. Millimeter wave is the critical technology in 5G infrastructure to deliver extreme data speed and capacity. In addition, this technology provides services on mobile and wireless networks and allows for higher data rates up to 10 Gbps. The rise in demand for 5G technology in the telecommunication sector is expected to drive the growth of the millimeter wave technology market in the coming years.

Impact of covid-19

The COVID-19 outbreak has cast uncertainties for industries worldwide. With government guidelines for lockdown and social distancing norms, the manufacturing companies are operating with half of their workforce capacities. Moreover, the sealing of international borders has led to supply chain disruptions. Severe lockdowns have limited the movement of people and distancing among civilians. Despite the plummeted growth of the businesses, the dairy industry is considered as an essential industry observed to have a positive growth during these unprecedented times.  Globally, the consumer demand for shelf-stable foods has soared due to its extended storing property.

In March 2020, India witnessed an almost 20% surge in the sale of packaged UHT milk and other dairy products amid the COVID crises. In the past few months, the UHT milk market observed a sudden growth as consumers stock up for uncertain times.  From the supply side, the key players, in order to avoid the unforeseen challenges due to supply chain disruptions, have increased manufacturing of UHT milk, which can be delivered within three months. Unlike its counterparts, it helps the key players mitigate losses from spoilage and contamination, thereby facilitating the gradual growth of the market in the coming years.

Recent Developments

• August 2022 - Virgin Media O2, NEC Corporation (NEC; TSE: 6701), and Rakuten Symphony have announced their joint multi-vendor Open RAN deployment is entering the field phase, commencing with the activation of the first live sites in Virgin Media O2's commercial network. This successful multi-vendor Open RAN system deployment on macro-sites in the UK is notable for being in a brownfield network and baselined on the existing Telco Cloud supply chain to maximize future synergies. Based in the Northamptonshire region, the system highlights the mobile operator, NEC, and Rakuten Symphony's commitment to driving Open RAN innovation in the mobile industry.
• August 2022 - A global agreement has been reached to jointly develop secure 5G networks for communication service providers by NEC Corporation (NEC; TSE: 6701), a pioneer in the integration of IT and network technologies, and Fortinet® (NASDAQ: FTNT), a world leader in comprehensive, integrated, and automated cybersecurity solutions (CSPs).