Frost: New Technologies Spur Global Wireless Test, Measurement Industry
February 14, 2008 // Published as a news service by IHS
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The world wireless communications test and measurement market continues to witness strong growth, according to Frost & Sullivan.
Aided by the introduction of new technologies, such as wideband code division multiple access (W-CDMA)/ high-speed downlink packet access (HSDPA), high-speed uplink packet access (HSUPA), time division - synchronous code division multiple access (TD-SCDMA) and CDMA2000 1x evolution-data optimized (1xEV-DO).
Analysts said while third generation (3G) technology has played a vital role in the progress of this market, HSDPA and HSUPA will likely enhance market value and growth in the future.
Recent analysis from Frost & Sullivan of the global wireless test and measurement industry found earned revenues of $2.6 billion in 2006, with estimates to reach $5.5 billion in 2013.
"The implementation of third generation [3G] wireless networks and services, along with a need for enhanced applications such as gaming, video and music download, provides significant growth opportunities for the global wireless test and measurement equipment market," said Frost & Sullivan senior research analyst S. Vidyasankar.
"Furthermore, the growing demand for high-speed Internet is also likely to spur growth."
The emergence of new technologies, such as 3G, in addition to existing applications, such as video streaming, voice and data transfer, boosted the growth of the mobile equipment manufacturers' (MEMs) end-user segment. Analysts said the demand for base station and air interface test equipment from service providers has been on the rise because customers request new features on a constant basis.
In 2013, analysts said the network equipment manufacturers (NEMs), MEMs, mobile communication service providers (MCSPs) and others expect to reach 20%, 29.8%, 40.8% and 9.4% of the market, respectively.
With regard to the application segments, the R&D application segment expects to witness uninterrupted revenue growth due to the emergence of new technologies, such as HSDPA and HSUPA. Analysts said the installation and maintenance application segment will likely witness continuous growth rates in the future, especially with 3G technologies being rolled out and the increasing number of new technologies emerging in the marketplace.
"However, growing network complexity, along with emerging technologies and evolving standards, are likely to challenge test vendors," said Vidyasankar. "While propelling growth in the wireless industry, new technologies, such as 3G, 3.5G [three and a half generation, or HSDPA] and 4G [fourth generation] are also pressurizing vendors to develop and deploy test equipments that keep pace with industry advancements."
Test vendors will have to invest in R&D to introduce new products that will be in tune with the technological advancements in the marketplace. Analysts said active participation and association with industry organizations and different standards organizations, such as the worldwide interoperability for microwave access (WiMAX) forum, will help vendors understand and keep pace with emerging technologies.
Source: Frost & Sullivan.