Millimeter wave technology refers to the use of radio frequencies in the range of 30 GHz to 300 GHz, which are higher than the frequencies used for most wireless communication. This technology has various applications, including high-speed data transmission, radar, and imaging.
The market for millimeter wave technology is growing for several reasons. For instance, the increasing demand for high-speed data transfer is driving the growth of this market. Millimeter wave technology has the potential to enable faster data transfer rates, which is especially important for applications such as 5G mobile networks and wireless backhaul. Besides, the adoption of millimeter wave technology in the automotive industry for features such as collision avoidance systems and adaptive cruise control and its growing use in defense and security applications, such as surveillance and radar, are also driving its market growth. Owing to such increasing applications, according to the OMR analysis, the global millimeter wave technology market is estimated to reach $4.8 billion in 2025.
Based on application, the market is segmented into healthcare, telecommunications, military and defense, automotive and transportation, and others. Among these, the automotive and transportation segment dominated the market with a $584.3 million market share in 2021 and is further estimated to reach $2.7 billion in 2025.
Key Market Trends
Growing Adoption of Millimeter Wave Technology in 5G Networks
As 5G networks continue to roll out globally, millimeter wave technology is becoming increasingly important for enabling high-speed data transfer rates with low latency. This is leading to a rise in demand for millimeter wave technology in the telecommunications industry. According to Ericsson, a Swedish multinational networking and telecommunications company, 5G subscriptions are expected to surge globally between 2019 and 2027, rising from over 12 million to over 4 billion. Subscriptions are predicted to be highest in Southeast Asia, North East Asia, India, Nepal, and Bhutan.
Several telecom providers have also announced plans to continue and expand their 5G deployment projects. For instance, in October 2022, Baicells, which provides LTE and 5G solutions, collaborated with Helium Deploy, a supplier of Helium 5G Solution packages, to offer the Helium Network to the global community. As part of the collaboration, Helium Deploy will invest $9.5 million in Baicells Nova430H DeWi radios to meet the growing global demand.
Advancements in Technology
New technologies increase the efficiency and usability of millimeter wave technology. Recently, the use of gallium nitride (GaN) technology in millimeter wave devices has increased. GaN-based devices can operate at higher frequencies and handle higher power levels than traditional silicon-based devices, making them ideal for millimeter-wave applications. GaN technology has enabled the development of more efficient millimeter-wave devices, resulting in improved performance and reduced power consumption.
Growing Demand for Millimeter Wave Technology in Security and Surveillance
Millimeter wave technology is being used in security and surveillance applications such as airport screening, perimeter security, border control, critical infrastructure protection, and crowd monitoring. Several companies use this technology to develop security solutions. For instance, L3Harris Technologies is a global aerospace and defense technology company that develops and manufactures millimeter wave imaging systems for security applications, including airport security and perimeter security. Additionally, QinetiQ is a global defense and security company that develops and manufactures millimeter wave technology for security applications, including imaging systems for airport security and perimeter security. Some other companies in the security and surveillance segment include Smiths Detection, Terahertz Technologies Inc., ThruVision, and others.
Government Initiatives and Support
Governments are providing funding for research and development of millimeter wave technology to universities, research institutions, and private companies. For instance, in the US, the Federal Communications Commission (FCC) is investing in research to improve the efficiency and reliability of millimeter wave technology. One example of such funding is the FCC's 5G FAST Plan, which includes a $20.4 billion Rural Digital Opportunity Fund to support the deployment of high-speed broadband in rural areas. The plan was launched in 2020 and includes a $9 billion 5G Fund for Rural America to support the deployment of 5G networks in rural areas.
Additionally, governments are providing regulatory support to encourage the adoption of millimeter wave technology. For example, the European Commission has established the European Electronic Communications Code, which provides a regulatory framework for the deployment of 5G networks.
Recent Developments
The global market for millimeter wave technology is experiencing growth, which is attributed to the presence of various companies operating in the market. Key players in the industry include Keysight Technologies Inc., Aviat Networks Inc., NEC Corp., Smiths Group Plc, and InterDigital Inc., among others. These players are implementing strategies such as product launches, partnerships, collaborations, and mergers and acquisitions to maintain their competitiveness in the market. Some of the recent developments by these market players include-
• In January 2023, SMK Electronics Corp. unveiled a new Milweb millimeter wave sensor technology and solution. The Milweb Wave Sensor can recognize objects, surfaces, upcoming terrain, and even, at close range, an individual's pulse rate and breathing using the company's proprietary algorithms. This adaptable new sensor technology has uses in home automation, automobile manufacturing, healthcare, and safety items.
• In May 2022, Micron Technology, a manufacturer of computer chips, contracted Singtel to install its 5G millimeter wave solutions with localized edge core at the company's 3D NAND flash memory production facilities in Singapore. Micron is the first firm in Singapore to test 5G by implementing a millimeter wave campus solution with an on-premises edge core for industry 4.0 manufacturing applications. The tailored solutions will be used in Micron's cleanroom to aid in the development of a wide range of digitally enabled and improved applications, ranging from automated visual assessment of specific chips to augmented reality (AR) for maintenance and operations.
• In August 2022, HFCL Limited signed a contract with Qualcomm Technologies, Inc. to design and produce 5G millimeter wave fixed wireless access (FPA) customer premise equipment (CPE) solutions. As part of its 5G product strategy, HFCL is growing its 5G product range by developing 5G mm Wave FWA CPE devices for India and global markets.