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Report: China's Ethernet Test Equipment Market to Exhibit Double-digit Growth Rates until 2018


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September 12, 2012

Report: China's Ethernet Test Equipment Market to Exhibit Double-digit Growth Rates until 2018

By Anshu Shrivastava, TMCnet Contributor

China’s Ethernet test equipment market is expected to exhibit double-digit growth rates until 2018, according to a report published by Frost & Sullivan (News - Alert), entitled “Chinese Ethernet Test Equipment Market.”

The “Chinese Ethernet Test Equipment Market” analysis report finds that the market earned revenues of $109.5 million in 2011. It also estimates this to reach $264.9 million in 2018.

The country is experiencing an explosion of network traffic and as a result network operators and network equipment manufacturers (NEMs) are seeking higher-speed technologies to break the bandwidth limit.  According to the report, the proliferation of higher bandwidth applications has popularized 10GbE networks and the 40/100GbE market is also expected to witness considerable growth.

The market is also witnessing increasing deployment of cloud computing, which is shifting the focus of private and government organizations to data centers for a higher degree for business continuity and security.

Moreover, the Frost & Sullivan’s report observes that the extra bandwidth created by the mushrooming of smart terminals and the widespread application of data/video/voice services is compelling service providers and NEMs to move toward Ethernet technology, offering significant opportunities to test vendors.

The high price of Ethernet is a major stumbling block for some end-users, especially in the current straitened circumstances, the report notes. The biggest end-user groups in the 1GbE and 10GbE test equipment market are -- service providers and carriers, and their cost consciousness affects the market for test equipment.

“Due to the increasing price-performance ratio of instruments, test equipment vendors are competing on price while offering the highest level of product performance,” said Wei Wei, research analyst at Frost & Sullivan, adding that in addition, they offer specialized customer service and technical support to ensure quality of service.

To deliver higher-bandwidth Ethernet testers as well as push the limit of current network infrastructure, the test equipment vendors continuously improve their high-end products by constantly investing in R&D to keep pace with technological advancements, according to the findings of the analysis.

The report expects that the market will get a major boost from the proposed a triple-play service that will converge telecommunications services, broadcasting, and the Internet. Additionally, they will also gain from operators moving away from traditional time division multiplexing (TDM)-based mobile backhaul networks to Ethernet mobile backhaul to scale and simplify provisioning and management. “The deployment of a 10G passive optical network for mobile backhaul traffic will also boost the Ethernet test equipment market,” Wei said.

Recently, Frost & Sullivan noted that the adoption of cloud computing in Australia is experiencing robust momentum with increasing awareness of cloud computing driving an influx of market participants as telecommunications providers, traditional IT companies and pure-play cloud vendors offer various cloud solutions.

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Edited by Rich Steeves

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