MOUNTAIN VIEW, Calif. – Feb. 22, 2015 – The bring-your-own-device (BYOD) trend coupled with more and more consumers using mobile devices to surf the Web, make payments and use entertainment services is highlighting speed and bandwidth issues. Smart devices accounted for 21 percent of total mobile devices and 88 percent of mobile data traffic in 2013. The need for wireless and mobile service providers to keep up with this increase in mobile traffic is a main driver for the wireless test equipment market.
An analysis from Frost & Sullivan, Global Wireless Test Equipment Market, finds that the market earned revenues of $3.35 billion in 2014 and estimates this to reach $4.92 billion in 2021. The study covers mobile device, base station, drive, mobile backhaul and wireless core test equipment.
“Increased investment in network function virtualization is boosting the use of wireless test equipment globally,” said Frost & Sullivan Communications Measurement and Instrumentation Program Manager Olga Yashkova-Shapiro. “In addition, advances in the Internet of Things will drastically increase the number of wearable devices and enable faster phones, intelligent factories, grids and machinery control for industries, underlining the need for an efficient testing system.”
For test equipment vendors, end user capital expenditure (CAPEX) and operational expenditure (OPEX) investments have posed a constant challenge. CAPEX and OPEX investments continue to fluctuate based on external market dynamics. For example, in the aftermath of the financial crisis, a number of OEMs and contract manufacturers were resistant to invest in new test systems due to liquidity crunches and risk. Absence of investments, however, is a short-term restraint.
Reduced CAPEX and OPEX investments are offset due to high demand for test instruments originating from OEMs and contract manufacturers in Asia-Pacific. Another challenge for test vendors is consolidation among chipset and equipment manufacturers which leaves fewer customers to serve. Minimizing testing time, which will yield significant cost savings for OEMs, also challenges test equipment vendors. With end users looking to drive down costs, accelerating the testing process is paramount. There is a strong push to conduct more testing for less money in a completely different and innovative manner because end users are not able to transfer increasing costs to consumers.
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