Fiber Optic Test Equipment Market

In the ever-evolving telecommunication and electronics landscape, the cost, reliability, and performance of any equipment has a significant impact on the time to market of products. Fiber optic test equipment is used to examine the physical characteristics and functionality of fiber optic components. The increasing adoption of fiber optic test equipment for inspection, troubleshooting, and cleaning operations is driving the fiber optic test equipment market.

Moreover, the growing demand for network testing equipment is propelling the fiber optic test equipment market. The proliferating penetration of network technologies is also creating potential opportunities for the growth of fiber optic test equipment market.

The global revenue of fiber optic test equipment market is poised to grow at a 6.7% CAGR over 2019-2027, according to the analysis of the market by Future Market Insights.

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Fiber Optic Technology Forms the Core of Modern Telecommunication Networks 

The extensive usage of fiber optics communication technology is rapidly increasing the demand for telecommunication capacity and internet services, which is contributing to the growth of the fiber optic test equipment market. Rapid developments in the telecommunication infrastructure of various emerging economies around the world is supporting the demand for fiber optic test equipment.

Fiber optic test equipment is helping fiber optic technologies become the preferred transmission medium for long-distance and high data rate transmission in telecommunication networks. The adoption of fiber optic test equipment is thus increasing rapidly to meet the transmission requirements. Moreover, an increase in next-generation IoT applications is driving the demand for fiber optic test equipment and communication infrastructure equipment, which is boosting the fiber optic test equipment market.

Increasing Penetration of LTE Networks and Fixed Broadband Subscription    

Widespread adoption of 4G networks across the world is propelling the fiber optic test equipment market. Moreover, telecom enterprises have started focusing on migrating their existing network infrastructure to 5G networks and services with high speed, which is also expected to drive the fiber optic test equipment market.

For instance, ITU (the International Telecommunication Union) has recently estimated that the capital investments related to fiber infrastructure will reach around US$ 140 billion between 2014 and 2019, owing to the contribution of next-generation network technologies. These factors are driving the fiber optic test equipment market.

Moreover, rapid growth in the fixed broadband subscription is significantly pushing performance of fiber optic test equipment market. According to ITU, the fixed broadband subscription in developing countries has increased by a CAGR of approximately 13% from 2012 to 2017.

Stringent Regulations and Standards for Fiber Optic Test Equipment and Systems

Various associations and regulatory bodies have defined a set of standards for fiber optic test equipment and fiber optic systems, which are required to provide an essential level of bandwidth and network speed demands. These standards and regulations are playing an important role in the growth of the fiber optic test equipment market. Moreover, increasing investments by the governments of various countries in fiber optic networks is also fuelling the growth of the fiber optic test equipment market.

Various providers of fiber optic test equipment are focusing on offering fiber optic test equipment based on the test & measurement standards set by International Telecommunication Union, Telecommunication Industries Association, American National Standards Institute and other standards. The growing demand for fiber optic test equipment that is based on these standards is driving the fiber optic test equipment market further.

Asia Pacific excluding Japan Maintains the Lead in Fiber Optic Test Equipment Market

APEJ is expected to hold a significant share in the global fiber optic test equipment market during the forecast period. Rapid developments in the network infrastructure of various countries is fuelling the growth of the fiber optic test equipment market in the region. Moreover, the growing need for high-performance and faster data transfer network equipment is also creating substantial demand for fiber optic test equipment.

• Furthermore, increasing investments in telecommunication sectors by countries in the region, such as India and China, are expected to drive the fiber optic test equipment market in Asia Pacific.

• In addition, China and India are the largest and second-largest telecommunication markets in the world respectively, and the increasing internet penetration in these countries is driving the fiber optic test equipment market. Furthermore, the increasing number of fixed broadband subscribers in the countries of Asia Pacific is also supporting the demand for fiber optic test equipment.

• For instance, according to the India Brand Equity Foundation, wired broadband subscriptions in India have increased by approximately 18% from 2015 to 2017. Moreover, the total number of broadband subscriptions at the end of March 2018 stood at around 412.6 million. This increase in the number of broadband subscriptions is fuelling the growth of the fiber optic test equipment market.

Partnerships and NPD among the Key Developmental Strategies

According to FMI’s analysis, long-term agreements with business partners are expected to escalate revenue and new innovation strategies, which is likely to enable the providers of fiber optic test equipment to reach new growth markets. Moreover, continuous innovations in fiber optic test equipment and the acquisition of businesses and technologies are also expected to help the providers of fiber optic test equipment create value for their shareholders and to accelerate revenue growth.

• For instance, in February 2018, EXFO, Inc. acquired Astellia, a telecommunication company that offers network and subscriber intelligence. This acquisition was aimed at delivering fiber optic test equipment and network intelligence solutions to customers.

Other key participants in the global fiber optic test equipment market include EXFO Inc., Anritsu, Fluke Corporation, Anixter International, VIAVI Solutions Inc., VeEX Inc., Yokogawa Corporation, Kingfisher International, National Instruments, AFL and Pelorus.