— Virtualization and the Internet of Things are ushering in next-generation testing, finds Frost & Sullivan
MOUNTAIN VIEW, Calif., Feb. 18, 2015 /PRNewswire/ — The bring-your-own-device (BYOD) trend coupled with more and more consumers using mobile devices to surf the Web, make payments and use entertainment services is highlighting speed and bandwidth issues. Smart devices accounted for 21 percent of total mobile devices and 88 percent of mobile data traffic in 2013. The need for wireless and mobile service providers to keep up with this increase in mobile traffic is a main driver for the wireless test equipment market.
The bring-your-own-device (BYOD) trend coupled with more and more consumers using mobile devices to surf the Web, make payments and use entertainment services is highlighting speed and bandwidth issues.
New analysis from Frost & Sullivan, Global Wireless Test Equipment Market, finds that the market earned revenues of $3.35 billion in 2014 and estimates this to reach $4.92 billion in 2021. The study covers mobile device, base station, drive, mobile backhaul and wireless core test equipment.
For complimentary access to more information on this research, please click here: <bit.ly>.
"Increased investment in network function virtualization is boosting the use of wireless test equipment globally," said Frost & Sullivan Communications Measurement and Instrumentation Program Manager Olga Yashkova-Shapiro. "In addition, advances in the Internet of Things will drastically increase the number of wearable devices and enable faster phones, intelligent factories, grids and machinery control for industries, underlining the need for an efficient testing system."
For test equipment vendors, end user capital expenditure (CAPEX) and operational expenditure (OPEX) investments have posed a constant challenge. CAPEX and OPEX investments continue to fluctuate based on external market dynamics. For example, in the aftermath of the financial crisis, a number of OEMs and contract manufacturers were resistant to invest in new test systems due to liquidity crunches and risk. Absence of investments, however, is a short-term restraint.
Reduced CAPEX and OPEX investments are offset due to high demand for test instruments originating from OEMs and contract manufacturers in Asia-Pacific. Another challenge for test vendors is consolidation among chipset and equipment manufacturers which leaves fewer customers to serve.
Minimizing testing time, which will yield significant cost savings for OEMs, also challenges test equipment vendors. With end users looking to drive down costs, accelerating the testing process is paramount.
"There is a strong push to conduct more testing for less money in a completely different and innovative manner because end users are not able to transfer increasing costs to consumers," noted Shapiro.
Global Wireless Test Equipment Market is part of the Test & Measurement Growth Partnership Service program. Frost & Sullivan’s related studies include: Global LTE-Advanced Test Equipment Market, Global LTE Test and Monitoring Equipment Market, Megatrends in the Communications Test Equipment Market, Analysis of the Market for Global Instrumentation Software and Software Solutions for General Purpose Test Instrument, and Global Wireless Protocol Analyzers, Load Stress Generators and Functional Test and Network Monitoring Systems Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Global Wireless Test Equipment Market
Corporate Communications — North America