February 27, 2014
More Demand for Ethernet Test Equipment with Market Predicted to Jump to $1.41B in 2017
There is more demand for Ethernet test equipment – with use in data center and mobile backhaul applications leading to the rise. The global Ethernet test equipment market saw revenues of $943 million in 2012 and that amount is predicted to total $1.41 billion in 2017, according to a report from Frost & Sullivan (News - Alert).
The firm also is predicting 40/100 gigabit Ethernet testers will be among those seeing more revenue. Also, the Ethernet test equipment market will see more next-generation solutions.
Reasons for the growth include the fact that Ethernet for cloud access offers bandwidth scalability, security and easier management, Frost & Sullivan explained. In examination of the market, Frost & Sullivan Measurement and Instrumentation analyst Prathima Bommakanti found that gigabit Ethernet vendors are investing in research and development on end-user technology, meeting requirements with high-performance test solutions, providing value and increased quality of experience.
Bommakanti added there is more competition in the Ethernet test market because of new operating technologies and changing customer needs. There could be concern for smaller- and medium-sized companies with “optimum service delivery levels of major market participants,” Frost & Sullivan said in a statement.
Yet, “explosive growth” in data center activities makes the sector “attractive for even big companies to create a niche through technologically advanced product introductions and frequent upgrades,” the statement adds. To compete successfully businesses must provide “innovative, multi-functional Ethernet test equipment and solutions with sophisticated capabilities that save on both time and cost,” the report said. In addition, test equipment vendors need to offer “superior capabilities at competitive prices” to increase their share of the market, Bommakanti said. Also, businesses will want to meet such concerns among customers as complex devices under testing and high-price points. If they address these and similar issues they will see better positioning when it comes to market share, the report adds.
Edited by Cassandra Tucker