Exploding Data Traffic And Imminent TD-LTE Deployment Spur Market Demand For Wireless Test Equipment In China, Declares Frost & Sullivan
BEIJING, May 8, 2012 /PRNewswire/ -- Increasing mobile data traffic and the application of mobile Internet continues to drive the wireless test equipment market in China. The home-grown time division long-term evolution (TD-LTE) standard offers more bandwidth and ensures more efficient data transfer, which spurs the demand for wireless test equipment.
New analysis from Frost & Sullivan ( http://www.testandmeasurement.frost.com), Analysis of the Wireless Test Equipment Markets: China , finds that the Chinese wireless test equipment earned revenues of $264.8 million in 2011 and estimates this to reach $771.3 million in 2018. The research covers base station test equipment, mobile device test equipment, drive test equipment, mobile backhaul test equipment, and wireless core test equipment.
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"The main factors pushing demand for wireless test equipment are the growth of 3G deployment, the increase of wireless data, and TD-LTE development," notes Frost & Sullivan Research Analyst Wei Wei. Meanwhile, the investments of mobile service providers are also expected to spur market demand."During the 12th Five-Year Plan period (2011-2015), China will accelerate the development of 4G by conducting large-scale experiments of its own TD-LTE technology and putting it into commercial use, if possible. Due to the wireless industry's move toward the TD-LTE/4G standard, the overall market is expected to witness medium growth during the forecast period. On the other hand, budgetary issues and decreased capital spending are likely to restrain the demand for wireless test equipment. The growth of wireless test equipment depends heavily on the CAPEX of service providers. In China, telecom operators' CAPEX plan varies with seasons. Even though the major investment area is a 3G network, operators will also make capital investments into optimizing a 2G/2.5G network. In addition to this challenge, uncertainty in the Chinese economy will also have a ripple effect on market prospects.
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