Reducing testing costs must remain a priority for test equipment vendors looking to tap into this vast market opportunity, finds Frost & Sullivan
MOUNTAIN VIEW, California, Nov. 19, 2015 /PRNewswire/ -- Consumer desire to surf the Web, make payments and use entertainment services on mobile devices is bringing long-term evolution (LTE) and LTE-advanced (LTE-A) standards to the forefront of wireless communications, in turn fueling the need for LTE test equipment. The success of LTE and LTE-A in delivering mobile data and high-definition voice has encouraged their use as the fundamental technology in public safety networks, further expanding the scope of the global LTE test equipment market.
Recent analysis from Frost & Sullivan, Global Long-term Evolution (LTE) Test Equipment Market (http://www.frost.com/nf28), finds that the market earned revenues of $2.39 billion in 2014 and estimates this to reach $6.20 billion in 2021.
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"While small cells and heterogeneous networks continue to gain momentum as tools that increase mobile network capacity, their low quality of service still leaves much room for improvement," said Frost & Sullivan Manufacturing 4.0 Program Manager Olga Yashkova. "Therefore, operators require effective testing and monitoring solutions for both legacy-based as well as next-generation mobile wireless networks."
Moreover, as Internet of Things (IoT) rapidly pervades various industries and applications, the escalating number of smarter, faster and wearable devices for consumers will drive the adoption of LTE test equipment solutions. In addition, the complexity of smartphones with multiple built-in antennas lengthens testing times exponentially, spurring the uptake of LTE test solutions.
For test equipment vendors, the rising expenses associated with manufacturing and testing curb profits. In particular, the new trend in the manufacturing segment of chipset vendors using proprietary methods in their chipsets heightens costs for testing suppliers.
The fluctuation of end-user investments based on external market dynamics are another challenge. A number of risk-averse original equipment manufacturers and contract manufacturers remain unwilling to purchase new test systems in the wake of the economic slowdown.
"The demand for LTE test instruments from Asia-Pacific will compensate for the falling procurement of new solutions," noted Yashkova. "Increasing collaboration among chipset vendors and test equipment companies will lower testing costs and help LTE testing vendors stay in the running across the global landscape."
Global Long-term Evolution (LTE) Test Equipment Market is part of the Test & Measurement (http://ww2.frost.com/research/industry/measurement-instrumentation/test-measurement) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Fiber Optic Test Equipment Market, Communications Test Equipment Market Outlook, Global Internet of Things (IoT) Testing and Monitoring Equipment Market, and Global Test, Measurement, and Instrumentation Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Global Long-term Evolution (LTE) Test Equipment Market
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SOURCE Frost & Sullivan