Global Wireless Test Equipment Market


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Global Wireless Test Equipment Market

  1. 1. Global Wireless Test Equipment Market Increasing Mobile Data Requirements from Smart Phones and Long- Term Evolution (LTE) Development are Expected to Fuel Growth NC07-30 July 2013 Global
  2. 2. 2NC07-30 Contents Section Slide Numbers Executive Summary 4 Market Overview 10 Total Wireless Test Equipment Market — • External Challenges: Drivers and Restraints 20 • Forecasts and Trends 31 • Geographic Analysis 37 • Market Share and Competitive Analysis 41 • Segment Analysis 50 • Mobile Device Test Equipment 53 • Base Station Test Equipment 64 • Drive Test Equipment 72 • Mobile Backhaul and Wireless Core Test Equipment 79 The Last Word 87 Appendix 90
  3. 3. 7NC07-30 Compound Annual Growth Rate 7.4% (2012–2019) Snapshot Market Stage Growth Market Revenue $3,379.5 M (2012) Market Size for Last Year of Study Period $5,569.2M (2019) Total Wireless Test Equipment Market: Global, 2012 Market Overview For a tabular version click here. Stable IncreasingDecreasing ng Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
  4. 4. 8NC07-30 Executive Summary—CEO’s Perspective 2 Increasing mobile data requirements attributed to the high adoption rates of smart phones provide market opportunities. 3 4 Companies are adopting direct distribution channels for sales, due to an increasing global presence strategy and growing demand for wireless test solutions. 5 It is important to identify and focus on the growing and changing end-user requirements. 1 LTE and LTE-A technologies driving demand for test equipment. Source: Frost & Sullivan analysis. Quality, reliability, and technology are the key competitive factors in the wireless test equipment market.
  5. 5. 9NC07-30 Market Overview-Definitions The evolution of the wireless test equipment market is influenced by developments in the wireless communications industry. Current trends, such as increased mobility, explosive mobile data traffic growth coupled with increasing adoption of smart devices and imminent LTE and LTE-Advanced deployments are expected to continue driving the demand for wireless test equipment . The wireless test equipment market had a number of hurdles in the past, however, it fully recovered in 2011 mainly driven by improved global economic situation and technological developments such as increasing 3G adoptions and, most recently, the LTE technology. The market is likely to continue growing at 7.4% compound annual growth rate (CAGR) from 2012 until 2019 as the telecommunications industry is rapidly moving toward 4G technologies. This study discusses and analyzes the various types of test equipment and technologies that are likely to drive the growth of the wireless test equipment market. The global wireless test equipment market is divided into the following segments by product type: •Mobile device test equipment •Base station test equipment •Drive test equipment •Mobile backhaul and wireless core test equipment The definitions of each segment of this study are included below.
  6. 6. 10NC07-30 Market Overview—Definitions (continued) Mobile Device Test Equipment Test equipment covered in this section includes systems used in testing mobile user equipment and services. These devices include benchtop and single-box testing systems used to test the performance, protocol, and capability of cellular access devices, such as cell phones and Smartphones, as well as connected devices such as laptops, netbooks, notebooks and tablets, wireless-enabled PDAs, and so on. There is a sub-segment called one-box testers, which are simple performance protocol testing solutions. Conformance or certification testers are also included in this section. These solutions are used to test protocol implementations and to check if the equipment conforms to standards. This segment also include design validation as well as compliance testing that is performed during the R&D stage of product lifecycle. Interoperability testers are used during the R&D stage of the product lifecycle and are used to verify if the equipment works as intended. These solutions also check whether or not the equipment performs with network equipment from various vendors. Radio frequency (RF) conformance testers are included in the scope of this study. The main function of this equipment is to verify if the radio implementation or physical layer implementation conforms with standard requirements. This type of test equipment represents a rather small part of the overall wireless test equipment market for R&D applications. These systems are expensive, thus they are purchased in small volumes. Frost & Sullivan analysis.
  7. 7. 11NC07-30 Market Overview—Definitions (continued) Base Station Test Equipment A base station is a fixed transmitting or receiving station for cellular phones, paging services and other wireless transmission systems. A base station is also known as an access point or transmitting/receiving location in a wireless local area network (WLAN). RF spectrum analyzers and signal generators are examples of base station test equipment. Base station test equipment encompasses feature and functional testers and protocol conformance testers that are used during the R&D stages of the product lifecycle. Such equipment usually includes an antenna tester and a spectrum analyzer, which is often a GPS receiver. Drive Test Equipment Drive test equipment refers to portable tools used for indoor and outdoor diagnostics and troubleshooting of wireless networks. These testers obtain RF coverage and service performance measurements, provide wireless data measurement options, and enable optimization for data applications. They also enable early verification of network deployments and provide true cross- technology scalability on a single platform. Besides benchmarking and trend analysis, there are several other applications where drive tests are performed. These include network optimization, acceptance testing expansions and new technology
  8. 8. 12NC07-30 Market Overview—Definitions (continued) implementation evaluation as well as scan drives for engineering maintenance. Even at the early stage of network construction, drive testing is a major way to evaluate network conditions. Mobile Backhaul and Wireless Core Test Equipment The mobile backhaul segment covers test equipment, including fiber optics used to test Ethernet and IP switching and routing-transport mechanisms between radio base stations and the wireless core network. The key areas that must be tested and validated are: Layers 2 and 3: While the Third Generation Partnership Project (3GPP) does not require a specific configuration, it allows various network and transport-level options to be used. At the initial stage of the deployment process, there is a need for a multi-technology testing and validation of transport layers. IPv6 deployment: Even though Internet Protocol version 6 (IPv6) is required for LTE, networks continue to use IPv4; therefore, development of combined IPv4 nodes and possible dual
  9. 9. 13NC07-30 Market Overview—Definitions (continued) IPv4/IPv6 stack systems for deployment is expected in the industry. Today's mobile devices are expected to support both IPv4 and IPv6 and connect at the same time to IPv4/IPv6 packet data networks, so IPv4/IPv6 integration must be carefully tested. IP-routing: Network addressing is a challenge in the IP realm. Mobility management entities (MMEs) are expected to support thousands of eNodeBs positioned across numerous private or public networks. Random and methodical addressability tests are necessary for the evolved packet core architecture (EPC).
  10. 10. 14NC07-30 Market Overview—Key Questions This Study Will Answer Is the market growing? How long will it continue to grow and at what rate? Does the wireless test equipment market present future opportunities to vendors? What are the key drivers and restraints that will affect this market during the forecast period? What are the technology trends in the global wireless test equipment market? Does the existing wireless test equipment meet end-user needs? Which are the market participants to watch for? Source: Frost & Sullivan analysis.
  11. 11. 15NC07-30 Disclaimer Frost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or users. Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers. Our customers acknowledge, when ordering or downloading, that Frost & Sullivan Research Services are for customers’ internal use and not for general publication or disclosure to third parties. No part of this research service may be given, lent, resold or disclosed to noncustomers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the publisher. For information regarding permission, write to: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041
  12. 12. 16NC07-30 Appendix
  13. 13. 17NC07-30 Market Engineering Methodology One of Frost & Sullivan’s core deliverables is its Market Engineering studies. They are based on our proprietary market engineering methodology. This approach, developed across 50 years of experience assessing global markets, applies engineering rigor to the often nebulous art of market forecasting and interpretation. A detailed description of the methodology can be found here. Source: Frost & Sullivan research.
  14. 14. 18NC07-30 For Additional Information: Jeannette Garcia Corporate Communications – North America Direct: +1.210.477.8427 Email: