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Frost & Sullivan: New Technologies In Communications Spur The Need For General Purpose Test Equipment In Asia-Pacific

KUALA LUMPUR, Malaysia, March 27, 2013 /PRNewswire/ -- Evolving technologies in wireless and data communication networks and infrastructure, such as long term evolution and 4G, have spurred the need for general purpose test equipment in Asia-Pacific, as testing these networks is imperative to support the product development cycle, cover a wide range of radio frequency and digital measurements, and ensure their performance, safety and security.

New analysis from Frost & Sullivan (, Asia-Pacific General Purpose Test Equipment Market, finds that the market earned revenues of more than US$888.1 million in 2012 and estimates this to reach US$1198.9 million in 2016.

"Technical advancements to efficiently manage growing data traffic and capacity issues create specific requirements in test and measurement solutions, and equipment manufacturers are widening their product portfolios to meet these requirements," said Frost & Sullivan Measurement & Instrumentation Research Analyst Susan Sahayan. "Their solutions cover test instrumentation, software and services to cater to different applications in various stages of the network lifecycle, thereby boosting market scope."

Testing devices with better throughput and functionalities, quicker measurement speeds, higher resolution and accuracy, and faster data analysis of signals are becoming popular with end users looking to reduce testing costs, adding to market revenues.

The shifting of manufacturing as well as research and development (R&D) sites to Asia-Pacific owing to lower labor costs also drives the general purpose test equipment market. With the economic growth in emerging countries, including Vietnam, Indonesia and Cambodia, attracting foreign direct investments for manufacturing and industrial activities, demand for test equipment will continue.

However, several companies in Asia-Pacific that export to Europe, especially consumer electronic device dealers, are cautious with their expenditure on test equipment due to the European downturn, thus reducing market investments. The entry of low-cost Chinese devices has intensified competition, further straining test equipment manufacturers' profit margins.

"To maintain their market share in the face of this stiff competition, equipment suppliers must invest in innovation, R&D, and a strong product differentiation strategy," concluded Sahayan. "The drive toward renewable energy and green technologies will open up new opportunities in R&D, debugging, and lead to the development of environmental-friendly solutions."

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