Frost Perspectives

Fiber Inspection Probes Lead the Way for Fiber Optic Test Equipment

Jul 03, 2015

fiber inspection probes.jpgThe growth of smartphones and other mobile devices is exponential and this trend is expected to continue to grow. The concept of bring your own device (BYOD) and wear your own device (WYOD) is also gaining importance, and therefore, there is an increasing need to test these devices for security reasons. As a result, the fiber optic test equipment market is gaining importance to ensure smooth functioning of any network. The fiber optic test equipment (FOTE) market registered revenues of $628 million in 2014.

Market Research

Frost & Sullivan is currently working on the fiber optic test equipment market study. This study analyzes the end users and applications and also provides forecasts from 2014 to 2021, with the historic period from 2011 to 2013.

End-user Analysis

  • Telecommunication companies and carriers
  • Enterprises
  • Cable television service providers
  • Government and defense
  • Fiber-optic component (FO Comp) and cable manufacturers
  • Independent research laboratories (IR labs)

Application Analysis

  • Research & Development (R&D)
  • Manufacturing
  • Installation & Maintenance (I&M)

The key geographic regions analyzed in the study include:

  • North America: Canada and the United States
  • Europe: Western, Central, Eastern Europe, and Russia
  • Asia-Pacific: Countries that are on the western border of the Pacific Ocean (including those on the Indo-Chinese peninsula), the Pacific Islands, and Central Asia
  • Emerging Regions: Central and South America, the Caribbean islands, the Middle East, and Africa

From a regional standpoint, China has a huge base of domestic test vendors that primarily supply within China and sometimes, globally. Companies such as Shineway and Santec have global presence and such companies are coming up with innovative products, enabling them to move up the ladder. On the other hand, Middle East and Africa (MEA) is primarily dominated by the global vendors, with minimal involvement of regional players. The growth in the MEA region is generated from the new placements of central office with new network planning. Growth in wireless infrastructure is a key ingredient for market growth.

The key drivers that boost market growth include:

  • Growth in 100 gig deployments
  • Increase in mobile device sales
  • Need for higher penetration in Broadband FTTx
  • Drive for portable instruments

On the other hand, there are some restraints impacting market growth. They include:

  • Capital expenditure
  • Lower skilled technicians

Key Market Trends

Competition is intense with top 3 market participants contributing more than 50% of the total market share. Huge product portfolio, with combination of both portable and handheld instruments, global presence, and providing one-stop-shop solution, is the key to market success.

Fiber inspection probes (FIP) is gaining traction with increase in its use in offsite locations where conditions can be better controlled from the central office. FIP contributed to the higher growth of the FOTE market in 2014 and is expected to continue to boost market growth during the forecast period.

There is an increase in the use of wireless applications of fiber deployments with 4G/LTE rollouts, especially in countries of Americas and Asia. In 2014, there was lot of traction from the European region as well. Coaxial and RF cables are being replaced by fiber cables in distributed antenna systems (DAS) used in stadiums, hospitals, and shopping malls. In this regard, fiber to the antenna (FTTA) is gaining importance and technicians prefer fiber optic cables. As a result, the need and importance of FOTE is expected to increase.

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