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FTTH Deployments Lend Positive Momentum for European Fibre Optic Test Equipment Markets - Integrated test equipment poised to take the market forward
FTTH Deployments Lend Positive Momentum for European Fibre Optic Test Equipment Markets

 

NewswireToday - /newswire/ - London, United Kingdom, 2011/06/20 - Integrated test equipment poised to take the market forward.

   
 
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With the expansion of the installed base and the need for higher bandwidth speed, the European fibre optic test equipment (FOTE) markets are gaining strong traction. Fibre optics are poised to play a major role in most parts of Europe. New strategies unleashed to enhance passive optical network (PON) across Europe in the near future will bolster fibre to the home (FTTH) deployments.

Opportunities abound in the integrated test equipment market segment, and companies are vying with each other to provide value-added services. With operational expenditure being high on the agenda for end users, demand for combinational testers will witness an upsurge.

New analysis from Frost & Sullivan (testandmeasurement.frost.com), European Fibre Optic Test Equipment Markets, finds that the market earned revenues of over $140.4 million in 2010 and estimates this to reach $165.4 million in 2015.

"The United Kingdom is showcasing its broadband initiative, and FTTH deployment in most of England is triggering growth in the FOTE market," says Frost & Sullivan Research Analyst Sujan Sami. "Besides FTTH, other segments stoking growth in this domain are 3G, cell backhaul, and dense wavelength division multiplexing (DWDM)."

FTTH and 40 gb/s are driving market growth in Germany. The Czech Republic, Slovakia, Hungary, and Scandinavia are showing promise. Russia may see significant growth with reinvestments in the fibre optic space.

Spirited R&D efforts are underway to enable the roll out of better technology. Agilent Technologies exited the installation & maintenance (I&M) application segment and is significantly focused on R&D.

Although the prospects for the market look upbeat, there are some aspects clouding its landscape. Currently, vendors find it difficult to replace existing underground cables with fibre optic cables in certain parts of Europe, especially in Germany. Despite great demand for FTTH, vendors face a huge challenge in laying cables as right-of-way access is restricted with existing laws. This has hindered the growth of the market, and this trend is expected to continue in the foreseeable future.

Apart from this, the ripple effects of the global economic downturn were felt in the European FOTE market. France and Germany are yet to recover, and growth in these regions is expected to be lacklustre. Competition is intense among test vendors in this space, making price pressure significant in the region and hindering vendors' growth. Increasing the price-to-performance ratio of their products is critical for vendors to prosper in this region.

In this scenario, vendors must contribute to lowering the cost of testing, as well as optimise customer workflow and end-user requirements, in order to establish their market presence. With new and emerging technologies such as reconfigurable optical add-drop multiplexer (ROADM), 40gb/s and 100 gb/s, standardisation is key for getting consensus among test vendors while developing new products.

"In the future, the uptrend in demand will continue for higher bandwidth speed, installation of FTTH capacity, and more wavelength," concludes Sami. "This, in turn, will spike demand for sophisticated equipment in the core network."

If you are interested in more information on this study, please send an email with your contact details to Anna Zanchi, Corporate Communications, at anna.zanchi[.]frost.com.

European Fibre Optic Test Equipment Markets is part of the Test & Measurement Growth Partnership Service program, which also includes research in the following markets: SONET/SDH test equipment, Gigabit Ethernet test equipment and wireless test equipment. 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 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on 6 continents.

 
 
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FTTH Deployments Lend Positive Momentum for European Fibre Optic Test Equipment Markets

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