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3G/4G, Cell Backhaul and FTTH Spike Growth in the World Fiber Optic Test Equipment Markets Finds Frost & Sullivan - The world fiber optic test equipment (FOTE) markets are poised for growth on the back of increasing 3G/4G, cell back haul and fiber-to-the-home (FTTH) deployments
3G/4G, Cell Backhaul and FTTH Spike Growth in the World Fiber Optic Test Equipment Markets Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2011/03/22 - The world fiber optic test equipment (FOTE) markets are poised for growth on the back of increasing 3G/4G, cell back haul and fiber-to-the-home (FTTH) deployments.

   
 
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Several governments are implementing broadband initiatives in their countries, which will create more bandwidth demand, more networks and the need to upgrade to 40gb Ethernet capacity. This strategy expects to boost FOTE market growth.

New analysis from Frost & Sullivan (testandmeasurement.frost.com), World Fiber Optic Test Equipment Markets, finds that the market earned revenues of over $544.6 million in 2010 and estimates this to reach $695.2 million in 2015.

If you are interested in more information on this study, please 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 website, city, state and country.

"The R&D sector is growing with increased demand for triple-play technology voice, video, data and increasing bandwidth requirements," says Frost & Sullivan Industry Manager Sujan Sami. "This is expected to spike demand for new test equipment."

Simultaneously, demand in manufacturing as well as installation and maintenance (I&M) sectors will increase as well. Agilent Technologies exited the I&M application segment and is significantly focused on R&D.

Growth in the Asia Pacific region is the most prolific with increase in FTTH deployment, especially in China and India and growing demand for cell back haul and 40gb/s. China offers immense opportunities for the FOTE market. Regulations and standards to build infrastructure boost growth of broadband access and in turn, the FOTE market.

Although the prospects for the market look upbeat, there are some challenges restraining its momentum. The global economic downturn reduced the FOTE market and is expected to have a slight impact on the growth of the market. The FOTE market is quite mature and as such, competitive where price sensitivity is very high. Other factors contributing to the pricing of fiber optic test equipment include the complexity of measurement, distance to be covered and regional competition.

Low-cost manufacturers in China pose an immense threat to global companies. Price pressure is significant in this region as foreign vendors compete with incumbent market participants. There is a pressing need for additional government stimulus packages to help the market pick up momentum.

Europe has not shown a keen interest in the FOTE space with the level of already existing stimulus packages. Countries in Europe still deal with regulatory problems for FOTE rollouts. In addition, global vendors face operating issues from western countries and face challenges with distance and language.

Distribution plays a major role in conquering the customer base for a vendor in the fiber optic test equipment market. Indirect sales through distributors are critical for reaching out to smaller companies/customers and covering key regions. However, direct sales with a local representative are vital to cater to the needs of the large customer base. This will help build long-term relationships, discuss new projects and provide them with the right type of test equipment at the right time.

"A prominent trend in today's market is integration of test equipment; this adds value for the customer," says Sami. "With operational expenditure being an important criterion for end users, the combinational testers market is expected to witness a growth upsurge."

World Fiber Optic Test Equipment Markets is part of the Test & Measurement Growth Partnership Service program, which also includes research in the following markets: Fiber Optic Test Equipment in North America, Europe, Asia Pacific and the rest of the world, World Communication Test Services Market, World LAN / WAN Test Equipment Market and SONET/SDH Test 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 (frost.com), 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 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

World Fiber Optic Test Equipment Markets / N865

 
 
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3G/4G, Cell Backhaul and FTTH Spike Growth in the World Fiber Optic Test Equipment Markets Finds Frost & Sullivan

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Publisher Contact: Sarah Saatzer 
210-477-8427 sarah.saatzer[.]frost.com
 
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