Global Gigabit Ethernet Test Equipment Market Report 2019
July 15, 2019 | Business WireEstimated reading time: 2 minutes
The gigabit ethernet test equipment market is expected to register a CAGR of 6.45% during the forecast period (2019-2024).
The need for extra bandwidth has driven, both network service providers (NSPs) and network equipment manufacturers (NEMs) to embrace the Ethernet technology instead of traditional synchronous technology.
Key Highlights
- The increasing need for Ethernet in the manufacturing industries and the adoption of cloud services and big data fuels the growth of the market.
- With the increasing demand for mobile internet, the need for higher bandwidth is rising, owing to which the telecom operators are investing rigorously in research and development.
- The emergence of advanced technologies, such as cloud computing, internet of things (IoT), and 5G require a robust network connection, owing to which the use of test equipment also rises.
Major Market Trends
Telecommunication Sector Expected to Hold a Significant Market Share
- The demand for data centers is drastically increasing, owing to the rising internet and smartphone penetration. For instance, in July 2017, Bridge Data Centres, a Singapore-based data center outsourcing company announced to invest USD 500 million in data centres over the next two years in the country to cater the rising demand. As a result, it will ascend the need for test equipment in Gigabit Ethernet, thereby boosting the market growth.
- In addition, in September 2018, Facebook announced to invest in data centers in Singapore worth USD 1 billion, which in turn is expected to open new avenues for the industry players.
- The upgrades in the mobile backhaul for the imminent launch of 5G technology drive the need for robust Gigabit Ethernet Test Equipment. Hence, the rapid investment in 5G technology is expected to boost market growth over the projected period. Few top communication and electronic companies have commenced their investment toward 5G technology.
Asia-Pacific Expected to Witness the Highest Growth Rate
- Asia-Pacific region is expected to witness a significant rate over the forecast period, due to the increasing deployment of wireless networks. Additionally, increasing population, rising smart mobile users, mounting adoption of cloud services, and big data fuels the market expansion in the region.
- The need for speed has been driven by customers growing demand for the bandwidth, which has forced many service providers and network equipment manufacturers to stretch beyond the confines of 10G and 100G.
Competitive Landscape
The gigabit ethernet test equipment market is moderately competitive and consists of several major players. The market has gained a competitive edge over the past decade. However, with the advancement in ethernet test equipment, many of the companies are increasing their market presence by securing new contracts thereby tapping into the new markets.
Recent Developments
- February 2019—Spirent Communications PLC announced the launch of Spirent Automotive ComTT, the first universal test platform for the validation of Multibus technologies for in-vehicle networks. While automotive OEMs worldwide are adopting automotive Ethernet networking, traditional technologies such as Controller Area Network (CAN), CAN with Flexible Data-Rate (CAN FD) and Local Interconnect Network (LIN) will continue to be used for many years.
- August 2018—Samsung announced to invest KRW 25 trillion in various domains, such as automotive, biopharmaceuticals, and technology, including 5G.
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