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The global market for fiber optic testing equipment features the presence of a large number of companies, operating amid intense competition, observes Transparency Market Research in a recent report. Leading names in the global market, including Anritsu Corporation, Keysight Technologies, JDS Uniphase Corporation, EXFO Inc, and Tektronix Inc resort to market penetration strategy by developing products as per the changing technological needs of the highly dynamic telecommunications industry. Companies are also focusing on geographical expansion to exploit the vast growth opportunities in regions such as Asia Pacific. An instance is the Fluke Corporation. The company has recently acquired small players such as Hawk IR International and eMaint Enterprises.
Transparency Market Research estimates that in terms of revenue, the global fiber optic testing equipment (FOTE) market was valued at $571.87 million in 2016, and will reach $936.66 million by 2025, expanding at a CAGR of 5.7% from 2017 to 2025.
Asia Pacific Accounts for Massive Chunk of Revenue
In terms of application, the segment of installation and maintenance dominated the global market, accounting for a massive 68.4% of the market in terms of revenue in 2016. This segment is projected to retain its leading position across different regions over the report’s forecast period as well. Over the forecast period, the segment of measurement solutions is projected to witness significant growth owing to the large scale application of fiber optic testing equipment in the telecommunication industry.
From a geographical perspective, the Asia Pacific market, with a 54.5% of the overall revenue in 2016, holds a prominent position in the global market for fiber optic testing equipment. The region is also expected to emerge as the most attractive regional market for fiber optic testing equipment in terms of future growth potential. The thriving telecommunication industry of the region is one of the key drivers of the market and is expected to continue to drive the market over the next few years as well.
Advancements in Network Infrastructure Remains Key Growth Driver
Rapid advancements in network infrastructure across developed and developing economies is one of the key factors to have boosted the global uptake of fiber optic testing equipment in the past few years. The telecommunications industry in Asia Pacific, for instance, is focusing on the implementation of 5G network before the winter Olympics in 2018 slated to be held in Tokyo, Japan. Attempts aimed at the implementation of advanced telecommunication technologies such as 5G will fuel the demand for fiber optics, which, in turn, is expected to have a significant positive impact on the demand for fiber optic testing equipment in the next few years.
The market faces challenges such as the dearth of professionals specializing in the overall functioning of fiber optic testing equipment and their application in new technologies such as LTE (Long-term Evolution) and LTE M2M (machine-to-machine) owing to their high level of complexity. Employing the proper skilled and trained personnel to work around these technologies could be a costly affair, which is an additional cost of operating the already costly product varieties such as remote fiber test system fiber optic testing equipment. Thus, the high cost of operation and dearth of skilled workforce are expected to hamper the growth prospects of the global fiber optic testing equipment market to a certain extent over the forecast period.