Smart devices create opportunities for test vendors

The global wireless test equipment market generated revenues of $3.1 billion in 2011 and is expected to exceed $5.8 billion in 2017.

Olga Yashkova, Program Manager, Test & Measurement Practice, Frost & Sullivan -- Test & Measurement World, 1/20/2012 1:01:24 PM

The rapid changes that are taking place in the wireless communications industry are driving growth in the wireless test equipment market. With the growing number of wireless subscribers, smartphones, wireless data services, mobile banking, and social-networking applications, there is a need for increased functionality in test and measurement tools.

Source: Frost & Sullivan

The wireless test equipment market consists of signal generators, spectrum analyzers, network analyzers, and telecom and datacom test equipment. The global wireless test equipment market generated revenues of $3.1 billion in 2011 and is expected to exceed $5.8 billion in 2017 with a CAGR (compound annual growth rate) of 11.0% from 2011 to 2017. Numerous factors are contributing to the growth.

As LTE technology moves toward deployment, it brings new challenges, including higher data rates. The volume of mobile data traffic is increasing as a result of several factors: high-speed networks; an increased penetration of next-generation mobile phones (especially smartphones) and connected devices (laptops, netbooks, notebooks, and tablets); and higher-bandwidth-consuming applications and services.

In 2009, the penetration rate of active 3G (and 3.5G) users in North America was 12%, and it is expected to exceed 35% in 2015. Consequently, the demand for 3G-compatible test equipment is expected to increase. Likewise, the demand for QoS (quality of service) and QoE (quality of experience) analysis is increasing as growing mobile data usage creates more traffic on the network.

Smart devices are changing the mix of traffic from mostly voice to integrated voice, video, and data, thus creating a demand for products that can test a network’s performance and capacity along with how well it handles the integrated transmissions. Another issue that is a driver in the market is the need to support mobility across different technologies, from LTE to 3G, and back to 2G.

The rise of location-based services will also drive growth in the test market. A number of enabling technologies come into play for these services, such as WiFi and different satellite technologies beyond the original assisted GPS.
While the telecommunications industry is excited about data rates of 150 Mbps, LTE-Advanced promises 1 Gbps and 100-MHz bandwidth. The increases in data rates and bandwidth will drive more demand for wireless test equipment for mobile devices and base stations. T&MW