New Growth Potential: LTE Test Equipment Market

New Growth Potential: LTE Test Equipment

Market

Smartphone Adoption Drives the Demand for LTE Test Equipment

July 2013

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Contents

Section Slide Numbers

Executive Summary 4

Market Overview 9

Total Market -

• Drivers and Restraints 13

• Forecasts and Trends 39

• Market Share and Competitive Analysis 43

• Product Analysis 51

• Segment Analysis (R&D, Manufacturing, I&M and Monitoring) 57-86

• Geographic Analysis 87

Last Word 86

Appendix 88

The Frost & Sullivan Story 89

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Executive Summary

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Executive Summary

• In 2012, the total global long-term evolution (LTE) test equipment market witnessed a growth rate of

24.5 percent over 2011, and generated a revenue of $947.2 million. The compound annual growth

rate (CAGR) is estimated to be 22.7 percent from 2012 to 2019, and the market is likely to generate

$3,974.1 million by the end of 2019.

• The growth and evolution of the LTE test equipment market is influenced by developments in the

wireless communications industry. Increased mobility and the ability to access the Internet and

download videos at faster rates, run data hungry applications through mobile devices , are expected

to continue driving demand for LTE test equipment solutions.

• Rapid deployments of Smart devices, increased mobile data usage and the complex nature of LTE

network deployments and the difficulty in delivering to the needs of the consumers are expected to

continue driving the demand for LTE test equipment market.

• It is a well known fact that wireless technology is more complex than wire line and wireless networks

are much more prone to impairments compared to fixed networks. Due to the overall complexity of

LTE technology with Multiple input multiple output (MIMO), carrier aggregation (CA), increasing need

for scalability, and Voice over LTE (VoLTE), the need for test equipment is expected to increase.

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• The LTE test equipment market relies heavily on the wireless telecommunication industry that is the

Service providers(SPs), Network equipment manufacturers(NEMs), and handset manufacturers. The

market sustenance depends of the ability of the SPs to deliver to the expectations of the end-users

• With growing demand for faster data speeds , the need for LTE networks with proper interoperability,

mobility, maintaining the Quality of service(QoS) along with Quality of Experience (QoE) gain utmost

importance. Hence driving the need for the proper testing of LTE test equipment.

• The market today is heavily centered in the North American region, while the European region and

the Asia pacific region are yet to make major gains. In Asia, China and India world’s one of the

largest mobile subscriptions base have just began to adopt LTE, which shows that there are

significant opportunities in the region.

Companies

• The Tier I companies covered in this research service include Rohde & Schwarz, Anritsu, Agilent

technologies.

• Tier II vendors consist of Spirent Communications, Aeroflex, Anite, Ixia, JDSU and National

Instruments.

• Other players are Azimuth System, EXFO, Tektronix, Keithley Instruments, Fluke Networks, DingLi

among others.

Executive Summary

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LTE Test Equipment

R & D Manufacturing I & M Monitoring

The global LTE test equipment market in this

study is divided into the following segments :

• Research and Development (R & D)

• Manufacturing

• Installation and Maintenance

• Monitoring

Segmentation by geographic region:

• North America: United States and Canada.

• Europe: Belgium, France, Denmark,

Scandinavia, Germany, Italy, Luxembourg,

the Netherlands, Spain, the United

Kingdom, Hungary, the Czech Republic,

Poland, Russia, and Ukraine.

• Asia Pacific: Countries on the western border of the Pacific Ocean, including those on the Indo-

Chinese peninsula, the Pacific Islands and central Asia

• Rest-of-World: Latin America (Brazil, Mexico, Argentina, and Central and South America) and

regions not mentioned above, particularly the Caribbean Islands, the Middle East, and Africa.

LTE Test Equipment Market:

Market Segmentation (World), 2012

Source: Frost & Sullivan analysis

Executive Summary

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Forecast Period Market Growth Rate

22.7%

(CAGR, 2012-2019)

Market Concentration

44.9%

(% of market share held by

top 3 companies)

Executive Summary—Market Engineering Measurements

Market Stage

Growth

Market Revenue

$947.2 M

(2012)

Market Size for Last Year of Study Period

$3.97 B

(2019)

Total LTE Test Equipment Market: Global, 2012

Market Overview

For a tabular version click here. Stable Increasing Decreasing

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

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Drivers and Restraints

Denotes long-term impact

Denotes current impact

Source: Frost & Sullivan analysis.

LTE Deployments

MIMO Adoption

Standards

Increase in R&D

Spend by Test

Manufacturers VoLTE

Complexity of

LTE test equipment

Keeping up with

different standard

requirements

Cost of LTE

equipment

LTE Test Equipment Market: Key Market Drivers and Restraints, Global 2012–2019

Dri

vers

R

estr

ain

ts

Dri

ve

rs

Restr

ain

ts

Chipset vendors

consolidation Spectrum

allocation

Interoperability/

Roaming

M2M

Performance of

LTE devices Smaller number

of LTE handset

models

Scalability

Smartphone adoption

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The Frost & Sullivan Story

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Who is Frost & Sullivan

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To join our Growth Partnership, please visit http://www.frost.com.

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What Makes Us Unique

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For more information

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