Report: Emerging technologies spur growth in fiber-optic test equipment market in China

DECEMBER 10, 2007 � According to a new report from Frost & Sullivan, "Chinese Fiber Optic Test Equipment Markets," the market earned revenues of $76.9 million in 2006 and is forecast to reach $143.4 million in 2013.

Dec 10th, 2007

DECEMBER 10, 2007 -- New technologies are overshadowing old ones, with the phasing out of standalone instruments in the fiber-optic test equipment (FOTE) markets in China. Technologies such as triple play services, high-bandwidth networks, multipurpose test equipment, and fiber-to-the-x (FTTx) are playing significant roles in boosting these markets in various application areas, such as R&D, manufacturing, and installation and maintenance (I&M), claims a new report from Frost & Sullivan (search for Frost & Sullivan).

The report, "Chinese Fiber Optic Test Equipment Markets," reveals that the market earned revenues of $76.9 million in 2006 and estimates this to reach $143.4 million in 2013.
Triple-play services are increasingly offered in the fiber-optic market, resulting in the growth of the related FOTE markets, say analysts. Ongoing developments in access networks are facilitating the development of triple-play services.

"In addition, the increasing need in the market for higher bandwidth in the assess network has exponentially increased the demand for metro area networks," observes Frost & Sullivan research analyst David Ren. "Most end users of FOTE are choosing this method of bringing higher bandwidth to their customers, thereby driving the growth of FOTE vendors."
The need for enhanced speed increases the demand for high-speed networks, triggering the deployment of fiber-optic cables. As high-speed networks require dispersion testing for most of their components, this has proven to be another driver of growth in the FOTE market.

Meanwhile, multipurpose test equipment attracts buyers with appealing features such as higher layer testing and reasonable price. These factors encourage end users to buy multipurpose test equipment, as they are a one-stop offering for all their testing requirements. However, due to the presence of a number of legacy test equipment in the markets, end users are reluctant to invest in new systems unless their older ones need replacement, admit analysts.

Nevertheless, vendors should develop new products and expand their portfolio to meet the ever-increasing demands of end users, as this can make existing products obsolete and restrain the growth of the secondary market. Small- and medium-sized vendors should concentrate on providing increasingly customer-centric solutions to augment their market share.

"Upgrading existing test equipment to support these technologies is another major challenge for test equipment vendors," adds Ren. "Integrating new technologies into a single piece of test equipment to satisfy all the requirements of the end users with a comprehensive test [offering] could hold the solution to this challenge."

The "Chinese Fiber Optic Test Equipment Markets" is part of the Test and Measurement subscription, which includes research services in the following markets: world fiber optic test equipment (FOTE), world IP video testI& measurement, and world mechanical test equipment.


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