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Global Wireless Test Equipment Market Increasing Mobile Data Requirements from Smart Phones and Long-
Term Evolution (LTE) Development are Expected to Fuel Growth
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July 2013
Global
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Contents
Section Slide Numbers
Executive Summary 4
Market Overview 10
Total Wireless Test Equipment Market —
• External Challenges: Drivers and Restraints 20
• Forecasts and Trends 31
• Geographic Analysis 37
• Market Share and Competitive Analysis 41
• Segment Analysis 50
• Mobile Device Test Equipment 53
• Base Station Test Equipment 64
• Drive Test Equipment 72
• Mobile Backhaul and Wireless Core Test Equipment 79
The Last Word 87
Appendix 90
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Executive Summary
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Executive Summary
• In 2012, the total wireless test equipment market witnessed a growth rate of 9.8 percent over 2011,
and generated a revenue of $3,379.5 million. The compound annual growth rate (CAGR) is
expected to be 7.4 percent from 2012 to 2019, and the market is likely to generate $5,569.2 million
by the end of 2019.
• The growth and evolution of the wireless test equipment market is influenced by developments in the
wireless communications industry. Increased mobility and the ability to access the Internet and
download videos through mobile devices, are expected to continue driving demand for wireless test
equipment solutions.
• Rapid deployments of Smart devices, increased mobile data usage and Long-term evolution (LTE)
deployments are expected to continue driving the demand for wireless 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
wireless technologies, the need for test equipment is expected to increase going forward especially
with newer technologies such as LTE and LTE-Advanced (LTE-A) that bring in additional level of
complexity to networks.
• Testing becomes an integral part of bringing devices and services to market early because it is
critical to comply with industry standards and deliver high-quality products and services to their end-
users that not only meet, but exceed customer expectations. Source: Frost & Sullivan analysis.
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Executive Summary (continued)
•Test equipment is needed to help all the links in the entire supply chain: component manufacturers,
handset manufacturers, operators and laboratories that conduct compliance testing, helping them get
through the R&D cycle as quickly as possible, while ensuring the quality is good.
•Staying ahead of wireless operators in order to provide cutting-edge test equipment for new technology
deployments presents a challenge for wireless test equipment vendors. A test equipment vendor can
either be ahead of the technology curve or compete in a commodity-type environment by producing
low-end equipment.
•Maintaining robust support for existing technologies while pushing Forward with new technology support
is a challenge for service providers (SPs) as well as wireless test equipment vendors. SPs cannot simply
push forward with new technologies at the expense of existing technologies. They must ensure the
positive quality of experience (QoE) and quality of service (QoS) by continuing support of the existing
technologies while staying on the top of new and emerging techhnologies such as LTE and LTE-A.
Companies
•The Tier I companies covered in this research service include Agilent Technologies, Anritsu and Rohde
& Schwarz.
•Tier II vendors consist of LitePoint/Teradyne, Anite, Spirent Communications, Ixia, Aeroflex, JDSU and
National Instruments.
•Other players are Azimuth Systemsm EXFO, Tektronix, Keithley Instruments, Fluke Networks, DingLi
among others.
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Executive Summary(continued)
Wireless Test Equipment Market: Market
Segmentation (World), 2012
Source: Frost & Sullivan analysis.
The global wireless test equipment market is
divided into the following segments by product
type:
•Mobile device test equipment
•Base station test equipment
•Drive test equipment
•Mobile backhaul and wireless core test
equipment
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.
Wireless Test Equipment
Mobile Device Base station Drive Test Mobile
Backhaul & Wireless Core
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.
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Compound
Annual Growth
Rate
7.4%
(2012–2019)
Snapshot
Market Stage
Growth
Market Revenue
$3,379.5
M (2012)
Market Size for
Last Year of
Study Period
$5,569.2M
(2019)
Total Wireless 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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Executive Summary—CEO’s Perspective
2 Increasing mobile data requirements
attributed to the high adoption rates of smart
phones provide market opportunities.
3
4
Companies are adopting direct distribution
channels for sales, due to an increasing
global presence strategy and growing
demand for wireless test solutions.
5 It is important to identify and focus on the
growing and changing end-user requirements.
1 LTE and LTE-A technologies driving demand
for test equipment.
Source: Frost & Sullivan analysis.
Quality, reliability, and technology are the
key competitive factors in the wireless test
equipment market.
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Market Overview-Definitions
The evolution of the wireless test equipment market is influenced by developments in the wireless
communications industry. Current trends, such as increased mobility, explosive mobile data traffic growth
coupled with increasing adoption of smart devices and imminent LTE and LTE-Advanced deployments are
expected to continue driving the demand for wireless test equipment .
The wireless test equipment market had a number of hurdles in the past, however, it fully recovered in 2011
mainly driven by improved global economic situation and technological developments such as increasing 3G
adoptions and, most recently, the LTE technology. The market is likely to continue growing at 7.4%
compound annual growth rate (CAGR) from 2012 until 2019 as the telecommunications industry is rapidly
moving toward 4G technologies.
This study discusses and analyzes the various types of test equipment and technologies that are likely to
drive the growth of the wireless test equipment market.
The global wireless test equipment market is divided into the following segments by product type:
•Mobile device test equipment
•Base station test equipment
•Drive test equipment
•Mobile backhaul and wireless core test equipment
The definitions of each segment of this study are included below.
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Market Overview—Definitions (continued)
Mobile Device Test Equipment
Test equipment covered in this section includes systems used in testing mobile user equipment and
services. These devices include benchtop and single-box testing systems used to test the
performance, protocol, and capability of cellular access devices, such as cell phones and
Smartphones, as well as connected devices such as laptops, netbooks, notebooks and tablets,
wireless-enabled PDAs, and so on.
There is a sub-segment called one-box testers, which are simple performance protocol testing
solutions.
Conformance or certification testers are also included in this section. These solutions are used to test
protocol implementations and to check if the equipment conforms to standards. This segment also
include design validation as well as compliance testing that is performed during the R&D stage of
product lifecycle.
Interoperability testers are used during the R&D stage of the product lifecycle and are used to verify if
the equipment works as intended. These solutions also check whether or not the equipment performs
with network equipment from various vendors.
Radio frequency (RF) conformance testers are included in the scope of this study. The main function
of this equipment is to verify if the radio implementation or physical layer implementation conforms
with standard requirements. This type of test equipment represents a rather small part of the overall
wireless test equipment market for R&D applications. These systems are expensive, thus they are
purchased in small volumes.
Frost & Sullivan analysis.
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Market Overview—Definitions (continued)
Base Station Test Equipment
A base station is a fixed transmitting or receiving station for cellular phones, paging services and other
wireless transmission systems. A base station is also known as an access point or
transmitting/receiving location in a wireless local area network (WLAN). RF spectrum analyzers and
signal generators are examples of base station test equipment. Base station test equipment
encompasses feature and functional testers and protocol conformance testers that are used during
the R&D stages of the product lifecycle. Such equipment usually includes an antenna tester and a
spectrum analyzer, which is often a GPS receiver.
Drive Test Equipment
Drive test equipment refers to portable tools used for indoor and outdoor diagnostics and
troubleshooting of wireless networks. These testers obtain RF coverage and service performance
measurements, provide wireless data measurement options, and enable optimization for data
applications. They also enable early verification of network deployments and provide true cross-
technology scalability on a single platform.
Besides benchmarking and trend analysis, there are several other applications where drive tests are
performed. These include network optimization, acceptance testing expansions and new technology
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Market Overview—Definitions (continued)
implementation evaluation as well as scan drives for engineering maintenance. Even at the early
stage of network construction, drive testing is a major way to evaluate network conditions.
Mobile Backhaul and Wireless Core Test Equipment
The mobile backhaul segment covers test equipment, including fiber optics used to test Ethernet
and IP switching and routing-transport mechanisms between radio base stations and the wireless
core network.
The key areas that must be tested and validated are:
Layers 2 and 3: While the Third Generation Partnership Project (3GPP) does not require a specific
configuration, it allows various network and transport-level options to be used. At the initial stage of
the deployment process, there is a need for a multi-technology testing and validation of transport
layers.
IPv6 deployment: Even though Internet Protocol version 6 (IPv6) is required for LTE, networks
continue to use IPv4; therefore, development of combined IPv4 nodes and possible dual
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Market Overview—Definitions (continued)
IPv4/IPv6 stack systems for deployment is expected in the industry. Today's mobile devices are
expected to support both IPv4 and IPv6 and connect at the same time to IPv4/IPv6 packet data
networks, so IPv4/IPv6 integration must be carefully tested.
IP-routing: Network addressing is a challenge in the IP realm. Mobility management entities
(MMEs) are expected to support thousands of eNodeBs positioned across numerous private or
public networks. Random and methodical addressability tests are necessary for the evolved
packet core architecture (EPC).
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Market Overview—Key Questions This Study Will Answer
Is the market growing? How long will it continue to grow and at what rate?
Does the wireless test equipment market present future opportunities to vendors?
What are the key drivers and restraints that will affect this market during the forecast period?
What are the technology trends in the global wireless test equipment market?
Does the existing wireless test equipment meet end-user needs?
Which are the market participants to watch for?
Source: Frost & Sullivan analysis.
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Disclaimer
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Appendix
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Market Engineering Methodology
One of Frost & Sullivan’s core deliverables
is its Market Engineering studies. They
are based on our proprietary market
engineering methodology. This approach,
developed across 50 years of experience
assessing global markets, applies
engineering rigor to the often nebulous art
of market forecasting and interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan research.
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For Additional Information:
Jeannette Garcia
Corporate Communications – North America
Direct: +1.210.477.8427
Email: [email protected]