Wireless test equipment vendors have many technologies to choose from. Among them, long-term evolution (LTE) is clearly emerging as the favorite for its ability to power high-bandwidth networks that provide new, higher-capacity, and less expensive services and content types such as voice, video, data, wireless, and numerous multimedia applications. LTE has been gaining more traction than even code division multiple access (CDMA)-based ultra mobile broadband (UMB). LTE has a definite cost advantage over UMB.
New analysis from Frost & Sullivan (testandmeasurement.frost.com), World Wireless Test Equipment Market for Research and Development Applications, finds that the market earned revenues of $1.05 billion in 2008 and estimates this to reach $ 1.45 billion in 2015.
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"As most countries in the world use global system for mobile communication (GSM)-based networks, the evolution path of those networks, or LTE, generates better economies of scale for carriers," says Frost & Sullivan Industry Analyst Olga Yashkova. "Despite high-speed packet access’ (HSPA’s) ability to enable the delivery of streaming video, audio, and Internet data services, it is not good enough to be a true land line-last mile replacement option, which makes LTE a very attractive alternative to wireless operators."
LTE’s closest technology rivals are evolved enhanced data GSM environment (EDGE) and worldwide interoperability for microwave access (WIMAX). 3G-compatible test equipment boosts the performance as well as the usability of data-driven applications and mobile station manufacturers are increasingly seeking such equipment to perform more testing for product quality. However, currently, there are more opportunities than funds available.
Test vendors have to get their time-to-market spot on to succeed in these tough economic times. As 4G technologies are penetrating the market, R&D investments continue to stream in, but the wireless test equipment market for R&D has to stay ahead of the developments in the wireless industry.
The market potential notwithstanding, the economic downturn considerably slowed down the growth of the market. Service providers and network equipment manufacturers (NEMs) deferred their purchase decisions, causing the overall market’s revenue growth to dip to 1.5 percent from 2008 to 2009. Moreover, consolidation among chipset and equipment manufacturers – partly due to the economic slowdown and partly due to the natural evolution of the market – curbed the demand for R&D wireless test equipment.
"Mobile data revenues are expected to continue contributing significantly to the total mobile services revenues," notes Yashkova. "While messaging is likely to remain a major contributor, bundled data plans that allow mobile subscribers to use multiple types of mobile services are projected to be the primary revenue generators."
World Wireless Test Equipment Market for Research and Development Applications is part of the Test & Measurement Growth Partnership Services program, which also includes research in the following markets: World Multiplay and Next Generation Services Test and Monitoring Equipment Market, Market Opportunities for Test Vendors: WiMAX and LTE, World Wireless Test Equipment Market for I&M, World Network Performance Monitoring and Management Solutions Market for Enterprises, World Service Assurance Market, World GbE and 10 GbE Test Equipment Markets, and World 40/100 GbE Test Equipment Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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World Wireless Test Equipment Market for Research and Development Applications / N61A