Wireless protocol analysers market continues to grow

News

IBG - SA Instrumentation & Control Buyers' Guide

February 2008 News

Important mergers and acquisitions (M&As) among equipment manufacturers continue to impact the growth of the wireless protocol analyser (WPA) markets. Technologies such as WiMax, IP multimedia subsystem (IMS), and long term evolution (LTE) are expected to generate demand for new products and upgrades from equipment manufacturers as well as network operators. Additionally, network convergence and its related complexities will likely drive demand for test equipment.

New analysis from Frost & Sullivan finds that the market earned revenues of $297,9 million in 2006 and estimates this to reach $308,2 million in 2013.

"The introduction of new technologies and standards is expected to play a major role in the progress of the world WPA market as they will necessitate new test products and/or upgrades," notes Frost & Sullivan industry manager Jessy Cavazos. "IMS, LTE, and Mobile WiMax are expected to be the strongest growth drivers in the short term. To some extent, LTE requires a total change of test and measurement tools as the network architecture is expected to change significantly."

Moreover, networks continue to become more complex as converged networks become a reality with technologies such as IMS spanning the wireline and wireless spaces. The market will witness an increase in interoperability issues, more complex media streams and scenarios as well as a transition in the wireless space to IP. Service providers will need simple to use tools that help trouble-shooters ensure optimal network operability.

However, ongoing M&As have significantly reduced the customer base for WPAs. Despite 3G's better margins, only Ericsson achieved profitability during the shift in network equipment manufacturer sales from 2G to 3G. This led to significant merger and acquisition activity in the equipment manufacturers market with mergers such as Alcatel/Lucent and Nokia/Siemens.

"These mergers are expected to significantly impact the growth of the WPA market as the subsequent integration process is often riddled with delays, budget freezes, and process reassessments," says Cavazos. "Over time, this will impact prices as well as total demand for WPAs as there will only be a few very large customers."

For more information contact Patrick Cairns, Frost & Sullivan, +27 (0)21 680 3274, [email protected], www.frost.com

Share this article:

News

Wireless protocol analysers market continues to grow

Further reading:

Published by Technews