New Growth Potential: LTE Test Equipment Market
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Transcript of New Growth Potential: LTE Test Equipment Market
New Growth Potential: LTE Test Equipment
Market
Smartphone Adoption Drives the Demand for LTE Test Equipment
July 2013
9840-88
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Contents
Section Slide Numbers
Executive Summary 4
Market Overview 9
Total Market -
• Drivers and Restraints 13
• Forecasts and Trends 39
• Market Share and Competitive Analysis 43
• Product Analysis 51
• Segment Analysis (R&D, Manufacturing, I&M and Monitoring) 57-86
• Geographic Analysis 87
Last Word 86
Appendix 88
The Frost & Sullivan Story 89
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Executive Summary
• In 2012, the total global long-term evolution (LTE) test equipment market witnessed a growth rate of
24.5 percent over 2011, and generated a revenue of $947.2 million. The compound annual growth
rate (CAGR) is estimated to be 22.7 percent from 2012 to 2019, and the market is likely to generate
$3,974.1 million by the end of 2019.
• The growth and evolution of the LTE test equipment market is influenced by developments in the
wireless communications industry. Increased mobility and the ability to access the Internet and
download videos at faster rates, run data hungry applications through mobile devices , are expected
to continue driving demand for LTE test equipment solutions.
• Rapid deployments of Smart devices, increased mobile data usage and the complex nature of LTE
network deployments and the difficulty in delivering to the needs of the consumers are expected to
continue driving the demand for LTE test equipment market.
• It is a well known fact that wireless technology is more complex than wire line and wireless networks
are much more prone to impairments compared to fixed networks. Due to the overall complexity of
LTE technology with Multiple input multiple output (MIMO), carrier aggregation (CA), increasing need
for scalability, and Voice over LTE (VoLTE), the need for test equipment is expected to increase.
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• The LTE test equipment market relies heavily on the wireless telecommunication industry that is the
Service providers(SPs), Network equipment manufacturers(NEMs), and handset manufacturers. The
market sustenance depends of the ability of the SPs to deliver to the expectations of the end-users
• With growing demand for faster data speeds , the need for LTE networks with proper interoperability,
mobility, maintaining the Quality of service(QoS) along with Quality of Experience (QoE) gain utmost
importance. Hence driving the need for the proper testing of LTE test equipment.
• The market today is heavily centered in the North American region, while the European region and
the Asia pacific region are yet to make major gains. In Asia, China and India world’s one of the
largest mobile subscriptions base have just began to adopt LTE, which shows that there are
significant opportunities in the region.
Companies
• The Tier I companies covered in this research service include Rohde & Schwarz, Anritsu, Agilent
technologies.
• Tier II vendors consist of Spirent Communications, Aeroflex, Anite, Ixia, JDSU and National
Instruments.
• Other players are Azimuth System, EXFO, Tektronix, Keithley Instruments, Fluke Networks, DingLi
among others.
Executive Summary
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LTE Test Equipment
R & D Manufacturing I & M Monitoring
The global LTE test equipment market in this
study is divided into the following segments :
• Research and Development (R & D)
• Manufacturing
• Installation and Maintenance
• Monitoring
Segmentation by geographic region:
• North America: United States and Canada.
• Europe: Belgium, France, Denmark,
Scandinavia, Germany, Italy, Luxembourg,
the Netherlands, Spain, the United
Kingdom, Hungary, the Czech Republic,
Poland, Russia, and Ukraine.
• Asia Pacific: Countries on the western border of the Pacific Ocean, including those on the Indo-
Chinese peninsula, the Pacific Islands and central Asia
• Rest-of-World: Latin America (Brazil, Mexico, Argentina, and Central and South America) and
regions not mentioned above, particularly the Caribbean Islands, the Middle East, and Africa.
LTE Test Equipment Market:
Market Segmentation (World), 2012
Source: Frost & Sullivan analysis
Executive Summary
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Forecast Period Market Growth Rate
22.7%
(CAGR, 2012-2019)
Market Concentration
44.9%
(% of market share held by
top 3 companies)
Executive Summary—Market Engineering Measurements
Market Stage
Growth
Market Revenue
$947.2 M
(2012)
Market Size for Last Year of Study Period
$3.97 B
(2019)
Total LTE Test Equipment Market: Global, 2012
Market Overview
For a tabular version click here. Stable Increasing Decreasing
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
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Drivers and Restraints
Denotes long-term impact
Denotes current impact
Source: Frost & Sullivan analysis.
LTE Deployments
MIMO Adoption
Standards
Increase in R&D
Spend by Test
Manufacturers VoLTE
Complexity of
LTE test equipment
Keeping up with
different standard
requirements
Cost of LTE
equipment
LTE Test Equipment Market: Key Market Drivers and Restraints, Global 2012–2019
Dri
vers
R
estr
ain
ts
Dri
ve
rs
Restr
ain
ts
Chipset vendors
consolidation Spectrum
allocation
Interoperability/
Roaming
M2M
Performance of
LTE devices Smaller number
of LTE handset
models
Scalability
Smartphone adoption
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Who is Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and
achieve best-in-class positions in growth, innovation and leadership. The company's Growth
Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best-practice models to drive the generation, evaluation, and implementation
of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from more than 40 offices on six continents.
To join our Growth Partnership, please visit http://www.frost.com.
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What Makes Us Unique
All services aligned on growth to help clients develop and implement
innovative growth strategies
Continuous monitoring of industries and their convergence, giving clients first
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More than 40 global offices ensure that clients gain global perspective to
mitigate risk and sustain long term growth
Proprietary TEAM Methodology integrates 7 critical research perspectives to
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Career research and case studies for the CEOs’ Growth Team to ensure
growth strategy implementation at best practice levels
Close collaboration with clients in developing their research-based visionary
perspective to drive GIL
Focused on Growth
Industry Coverage
Global Footprint
Career Best Practices
360 Degree Perspective
Visionary Innovation Partner
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TEAM Methodology
Frost & Sullivan’s proprietary TEAM Methodology ensures that clients have a complete 360 Degree
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Market
Global and regional market analysis, including drivers and restraints, market
trends, regulatory changes, competitive insights, growth forecasts, industry
challenges, strategic recommendations, and end-user perspectives.
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For more information
Jeannette Garcia
Corporate Communications – North America
Direct: +1.210.477.8427
Email: [email protected]