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World Gigabit Ethernet Test Equipment Markets Hold Huge Potential with Escalation of Bandwidth Demand and Convergence of Tech. Finds Frost & Sullivan - Although many communications test markets have been adversely impacted by the economic downturn that started in late 2008, the world gigabit Ethernet (GbE) test equipment markets have performed reasonably well
World Gigabit Ethernet Test Equipment Markets Hold Huge Potential with Escalation of Bandwidth Demand and Convergence of Tech. Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2010/03/19 - Although many communications test markets have been adversely impacted by the economic downturn that started in late 2008, the world gigabit Ethernet (GbE) test equipment markets have performed reasonably well.

   
 
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The markets are expected to continue to grow during 2009 and beyond, but the segments are likely to grow at different rates. While the 1GbE test equipment segment is scheduled to grow at a single-digit rate, the 10GbE test equipment segment will grow at double-digit rates. This would pave way for the 40 and 100GbE test equipment markets, which are poised to materialize by the end of 2010.

New analysis from Frost & Sullivan (testandmeasurement.frost.com), World Gigabit Ethernet Test Equipment Markets, finds that the markets earned revenues of over $537.6 million in 2008 and estimates this to reach $1,077.6 million in 2013.

If you are interested in a virtual brochure for this study, then send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer[.]frost.com, with your full name, company name, title, telephone number, company email address, company web site, city, state and country.

"The steadily increasing ubiquity of Ethernet in the local area network (LAN), wide area network (WAN) (including 3G/4G wireless backhaul), and eventually the storage area network (SAN) creates a significant market opportunity for Ethernet test solutions, which are appropriate for wide deployment cost-wise," says Frost & Sullivan Research Analyst Prathima Bommakanti. "Service providers are pushing ahead with major investments to converge their data networks, and demand more 10 GbE solutions."

To expand their customer base, telecommunication operators are upgrading their networks to deliver next-generation services that encompass voice over Internet protocol (VoIP), Internet protocol television (IPTV) video-on-demand, and television-centric communication services. For instance, IPTV delivers higher quality video services compared to cable, along with the ability to offer personalized, on-demand services. Another prominent driver is the growth of Ethernet as a mobile backhaul solution.

At present, mobile backhaul is mostly handled over asynchronous transfer mode (ATM); however, with increased data needs for these mobile backhaul services, service providers are scrambling to incorporate Ethernet into their mobile backhaul networks. A major factor driving sales of 10GbE testing equipment is the creation of new platforms within the enterprise space. Delivery of video services by these service providers has been prevalent for several years, but has picked up momentum only a few years ago. Being one of the killer applications for the residential segment of the Ethernet market, video services also hike up the demand for bandwidth.

Brand identification is of great consequence for medium- and small-level participants in this competitive marketplace. End users are enamored of multinational test vendors that have popular brand names. In addition, the presence of local suppliers that have been present in the market for a long time threatens the prospects for others in the fray.

"Well established vendors have raised the barrier for smaller level participants as the larger conglomerates are able to offer well-designed customized solutions to suit end-user requirements," says Bommakanti. "These companies also have large research and marketing budget outlays which are leading to market polarization."

To remain successful in this domain, vendors must design solutions to accommodate future demand, as end users are displaying a preference for upgrading products instead of procuring new solutions. Participants are finding it difficult to offer higher density along with enhanced performance features in a single solution.

Vendors must launch modules addressing the need for realism and capability requirements, while keeping a close check on price to combat the tough economic conditions. Keeping the solution as simple as possible is vital while designing a solution to facilitate the learning process for customers. Deploying smart strategies to circumvent these roadblocks will enable participants to attain fast-track progression toward business goals.

World Gigabit Ethernet Test Equipment Markets is part of the Test and Measurement Growth Partnership Service program, which also includes research in the following markets: World Triple Play and Next Generation Services Test and Monitoring Equipment Market, World Wireless Test Equipment Market for I&M, World Network Performance Monitoring & Management Solutions Market for Enterprises, World xDSL Test Equipment Market, and World IMS Test and Monitoring Equipment Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

World Gigabit Ethernet Test Equipment Markets / N5DB

 
 
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World Gigabit Ethernet Test Equipment Markets Hold Huge Potential with Escalation of Bandwidth Demand and Convergence of Tech. Finds Frost & Sullivan

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