Emerging telecommunication and data communication technologies are expected to breathe new life into the world markets for test equipment. Market revival is on the cards with a surge in demand for efficient and cost effective telecommunication testing solution. Positive trends such as rapid increase in Internet usage and intranet traffic as well as the need for faster connectivity and high-quality services are likely to boost the sagging market.

This Frost & Sullivan research provides an in-depth analysis of seven different test equipment technologies including local area network/wide area network protocol analyzers, bit/block error rate testers, butt test sets, synchronous optical network/synchronous digital hierarchy (SONET/SDH), asynchronous transfer mode (ATM), and gigabit Ethernet test equipment. The report also provides geographic, end-user, competitor, and application-wise analyses for each test equipment market.

Integrated Solutions and Gigabit Ethernet Networks to Transform the Market

With the increasing complexity of networks and the evolving nature of technology, the introduction of highly integrated and scalable products are providing a competitive edge to test equipment vendors. According to the analysts, "Emerging technologies such as next-generation SONET/SDH, resilient packet ring, and asynchronous transfer mode over multi-protocol label switching are increasing market avenues for sophisticated testing solutions."

The emergence of 10 gigabit Ethernet, its compatiblity with SONET/SDH technology as well as its expansion into wide area networks (WAN) and metropolitan area networks (MAN) are enhancing demand for this type of test equipment. The need for upgradation and replacement are encouraging sales of next-generation SONET/SDH and ATM test equipment. Growth of private enterprises with heavy investments in communications network is also facilitating market expansion.

Open Systems, Shorter Production Cycles, and Adaptability - a Must for Market Endurance

Manufacturers are focusing on developing modular, open systems as well as flexible hardware and software architecture to stave-off challenges from restricted capital expenditure and infrastructural requirements. Concerted efforts are on to reduce the time-to-market as the unstable economy, excess inventories, second-hand equipment, and in-house solutions limit sales as well as revenues.

The shift toward 'problem-preventing' systems rather than 'problem-curing' systems is creating new market opportunities in original equipment manufacturing, research and development, as well as installation and maintenance. The analysts conclude, "Vendors that can find new markets, address diverse end-user requirements, and provide adaptable solutions are likely to gain market acceptance in these difficult times."