Demand For FTTX To Drive Chinese Fiber Optic Test Equipment Market, Says Frost & Sullivan
BEIJING, March 26, 2013 /PRNewswire/ -- Fiber optic communication systems have revolutionized the telecommunications industry and are becoming the future of network and telecom. In China, local communication service providers are expected to hike investments in infrastructure upgrades, with the development of broadband infrastructure poised to boost demand for fiber optic test equipment (FOTE). Moreover, the need for last mile and access networks has been growing. Such factors are expected to boost the Chinese FOTE market.
New analysis from Frost & Sullivan ( http://www.testandmeasurement.frost.com), Fiber Optic Test Equipment Market in China , finds that the market earned revenues of $81.1 million in 2012 and estimates this to reach $123.9 million in 2019. The product segments covered include optical time domain reflectometer (OTDR), optical light source (OLS), optical power meter (OPM), optical loss test set (OLTS), remote fiber test systems (RFTS), and optical spectrum analyzer (OSA).
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The need for greater bandwidth and the deployment of fiber to the X (FTTX) are the main market growth drivers for the Chinese FOTE market, which will register steady growth over the next 4-5 years."The main factor driving FOTE is the demand for high performance and faster data transfer," noted Frost & Sullivan Research Analyst Wei Wei. "The rising use of digital technologies, especially high-definition electronic products, requires greater bandwidth for both upstream and downstream applications. Data transfer through fiber optic cables is more cost-effective. This trend, therefore, offers significant opportunities to test vendors." There is an ever-increasing demand for FTTX technology due to a greater number of multimedia and business services. Local operators in China are actively introducing FTTX, which utilizes Ethernet technology in its key Ethernet Passive Optical Network (EPON) and Gigabit PON (GPON) devices. The expanded deployment of FTTX is poised to fuel demand for FOTE. Despite optimistic projections, the lack of skilled technicians to keep pace with changes in FTTX technologies threatens the pace of market development. Moreover, high initial investment and maintenance costs hinder market prospects. The initial outlay required to replace legacy non-fiber cables with an entire fiber cable infrastructure is an obstacle for service providers, especially in rural areas.
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