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World Gigabit Ethernet Test Equipment Market
Market |
Information Technology |
Report Type |
Market Research |
Country |
Global |
Published |
13 August 2010 |
Number of Pages |
91 |
- |
|
Publisher |
Frost and Sullivan |
File Format |
- |
The world gigabit Ethernet test equipment market is in its growth stage as new test modules continue to appear and vendors realign their strategies to tap into emerging growth opportunities. Gigabit Ethernet test equipment is expected to become more user-driven as service providers, NEMs and enterprises demand newer modules forcing test vendors to prepare for the next evolution in the Ethernet test equipment market.
As more and more applications drive the need for more bandwidth, Ethernet is considered the only solution that scales with the lowest cost per bit. Mobile technology is experiencing rapid growth as smart phones become more prevalent, which requires more bandwidth to cell sites. Investment from the service providers had been shifted to address the mobile backhaul application.
Carriers are focussed on increasing revenues with applications such as IPTV and are addressing the cost issue by seeking better price-performance as well as improved features and flexibility from test vendors. Carrier Ethernet is emerging as the premier technology because of its cost and scalability advantages, resulting in heightened demand for test solutions in this space.
Despite challenging economic conditions and the high costs associated with infrastructure deployment, there have been significant investments by service providers to rollout infrastructure. This is primarily due to increased data requirements and faster communication associated with higher data transfer rates. Thus, service providers are urged to provide high value proposition by offering lower latency, better response time, lower operating cost, and lower power consumption features. This increases the need for testing and, hence, the surge in test equipment sales.
While prices for 1GbE were becoming commoditized, there was considerable pressure to reduce the price of 10 GbE test equipment as well. There was a marginal reduction in prices, particularly in 2009, as test vendors tried to attract customers during a period of financial uncertainty. A key challenge has been the hesitation to finance new projects, especially those of substantial size that require significant investments. This has restricted the expansion of the world gigabit Ethernet test equipment market.
With the intensifying need for higher bandwidth, test vendors are incorporating advanced test feature sets so as to accommodate future demand and are offering flexible solutions. Test vendors are focused on building high-performance traffic generation and analysis products that demonstrate price and performance leadership.
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