Advancements in Telecom Sector Enhance Demand

The global market for LAN/WAN Test Equipment is expected to hit a total value of US$1.16 billion by the year 2017, primarily driven by growing demand from private enterprises, advancements in telecom sector, and growing concerns over network security. Robust demand from developing markets, especially Asia-Pacific, will help this market grow in future years.

The remarkable growth of computer networks since introduction of the Internet and the subsequent development of new technologies to enhance network functionality have triggered off demand for network test equipment worldwide. Designed to monitor and troubleshoot network related issues, LAN/WAN test equipment has become a major part of network operations, and gained wide acceptance among private enterprises, service providers, and network equipment manufacturers. Demand for network test equipment has increased with private enterprises need to uninterruptedly monitor network integrity, and service providers' requirement for optimal network performance. LAN/WAN test equipment checks network reliability, throughput, and quality of service, and as well ensure network stability needed by both service providers and private enterprises.

According to Global Industry Analysts, demand for LAN/WAN test equipment in the recent years is highly supported by the latest developments in communication technologies, including VoIP (Voice over Internet Protocol), 10GbE, VPN, and PON. Furthermore, the demand is influenced by the initiation of 40 Gigabit Ethernet deployments, wireless networks, Gigabit PON, and triple play services, including video, voice, and data. Development of FTTH, and enhancing bandwidth needs are furthermore expected to support the growth of network test equipment market in the straightway few years.

The recent global economic meltdown

The recent global economic meltdown, which sent ripples of unrest in most business sectors while 2008 and 2009, not surprisingly left the worldwide LAN/WAN Test Equipment market hurting. With the financial crisis led economic slowdown negatively impacting every company's IT structure, world market for LAN/WAN Test equipment stood significantly weakened while the period. Budgetary constraints, lack of capital for investments in IT assets and the general strategy of doing more with less took its toll on LAN/WAN test equipment as spending on network infrastructure witnessed a significant fall. With several companies throwing plans to deploy expensive wireless network infrastructure and endpoints for regional offices onto the backburner until signs of an economic recovery, new orders for LAN/WAN test equipment took a severe blow while 2009. Lack of strong budgets to fund equipment replacements as well forced companies to focus on optimally utilizing their existing test equipment to put it more exactly than investing in replacements or upgradation, thereby dragging down growth furthermore in the market.

Another major factor that squeezed earnings for the market while the recession was the rise in demand for pre-owned as so then as rental LAN/WAN test equipment. Affordable and available with same warranty and product support as in newer equipment, these products have been safe bet for end-users while weak economy. Cost wary end-users, especially those keen on surviving the crisis, by and large preferred rental or pre-owned equipment, in this way squeezing earnings for LAN/WAN test equipment manufacturers.

Following drastic slowdown in revenue growth while 2009, the global market for LAN/WAN testing equipment staged a healthy comeback in the year 2010, primarily driven by resurgence in growth fundamentals just as improvement in global economy, and subsequent improvement in spending power among end-users and resurgence in network infrastructure investments. Going furthermore, growth in the LAN/WAN test equipment market will be primarily driven by mass proliferation of advanced technologies and applications just as WiMax, and 3G/3.5G, especially in relatively large untapped markets in Asia Pacific just as Bangladesh, Hong Kong, Pakistan, South Korea and Singapore. Increase in global number of wireless subscribers and cell site constructions, addition of new global as so then as regional frequency bands, such as WiMax bands of 2700MHz and 2500 MHz internationally and AWS in Canada and the US, and the increasing shift towards all-IP networks, particularly the use of IP multimedia subsystem innovation will boost market prospects for LAN/WAN Test equipment over the then and there few years.

With enterprises fast migrating their valuable data from traditional TDM based networks to advanced IP based LAN/WAN networks, its opportunities galore for LAN/WAN Test equipment. The need for business continuity and increasing deployment of Wireless Networks in enterprises will as well create tremendous market opportunities for advanced LAN/WAN test equipment in the enterprise segment. The market will as well be driven by continued advancements in telecom sector. Heavy investments being made by telecom carriers on new IP innovation, wireless infrastructure and fiber for providing state-of-the-art video, voice, and data services will create significant demand for LAN/WAN test equipment in the telecom industry. The ever-increasing proliferation of triple play services and complexity of networks demand high bandwidth speeds, fostering the demand for technologically advanced testing solutions.

The US continues to remain the largest regional market worldwide. Asia-Pacific represents the fastest growing regional market displaying a CAGR of about 6.5% over the analysis period. Performance Analyzers & Stress Testers represents the fastest growing market segment, by product type. Growth in this segment will be especially driven by research developments and introduction of products with advanced features just as those capable of checking entire OSI layers into one system.

The marketplace include Agilent Technologies Inc

Major players in the marketplace include Agilent Technologies Inc., Anritsu Corporation, AOIP SAS, Digital Lightwave Inc., EXFO Inc., Fluke Networks, Harris Corporation, Ixia, JDS Uniphase Corporation, LeCroy Corporation, Network Instruments LLC, RADCOM Equipment Inc., Spirent Communications Plc., Sunrise Telecom Inc., Tektronix Inc., Wilcom Inc., and Yokogawa Electric Corporation.

The innovation report titled LAN/WAN Test Equipment: A Global Strategic Business Report provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections for product segments Protocol Analyzers; Performance Analyzers & Stress Testers; and Conformance & Interoperability Test Systems, across all major geographic markets just as the US, Canada, Japan, Europe, Asia Pacific, and Rest of World. The report as well analyzes market by application type Technology & Development, Production Process, and Installation & Maintenance. Global Industry Analysts ©

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