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Video Testing Equipment Vendors Set to Ride the Cresting Wave of Digital Television Says Frost & Sullivan - Vendors Need to Focus on Implementing Open Design Systems and Offering Advanced Yet Cost-Effective Video Test Equipment
Video Testing Equipment Vendors Set to Ride the Cresting Wave of Digital Television Says Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2011/12/05 - Vendors Need to Focus on Implementing Open Design Systems and Offering Advanced Yet Cost-Effective Video Test Equipment.

   
 
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The inexorable march towards digitization and digital broadcasting is set to have a positive ripple effect on global video test equipment (VTE) markets. The key challenge for vendors will be to design open testing systems and to maintain margins, even while offering consumers cost-effective products with enhanced functionalities.

New analysis from Frost & Sullivan (testandmeasurement.frost.com), Global Video Test Equipment Markets, finds that the markets generated $298.3 million in 2010 and estimates this to reach $359.4 million in 2015. The research covers both analog and digital VTE.

"The transition from analog to digital broadcasting initiatives is being driven by the freeing up of spectrum which, in turn, is boosting the VTE market," notes Frost & Sullivan Industry Analyst Prathima Bommakanti. "The rapid growth of digital television, as well as HD television services, is set to impact investments by broadcast stations globally, spurring the demand for VTE."

The migration to digitization has had a significant impact on the VTE market. Broadcasters need to upgrade their facility and equipment, which, in turn, has meant more testing.

Gaming is also affecting market prospects. Liquid crystal display (LCD) technology has become the standard for high-end gaming. The mounting complexity of gaming technology and its interoperability with TV has triggered a rise in the demand for VTE.

Evolving customer trends have resulted in an escalating demand for advanced TVs. For instance, there is greater demand for LCD TVs rather than for flat panel display (FPD) TVs, such as plasmas and organic light emitting diodes (OLEDs). Such trends are fuelling greater demand for advanced video test sets.

"The increasing complexity of protocols and the concurrent development of different standards have underlined the importance of test equipment with improved testing capabilities," adds Bommakanti. "However, as protocols become more difficult to implement, it creates a serious challenge for test equipment to provide accurate measurements, particularly in the light of interoperability issues."

Although market prospects are bright, there are still some areas of concern. For instance, while many governments worldwide have initiated steps to facilitate the digitization of television, there is no uniform deadline for achieving this transition, especially in countries within the Asia Pacific region.

"Moreover, even as the broadcast segment witnesses an exponential increase in the amount of digital content, the high capital expenditure is discouraging many broadcasters – particularly smaller, regional ones – from investing in upgrades," cautions Bommakanti. "High costs are not only dissuading companies from transitioning to digital networks, but are also restraining investments in digital equipment, including testing solutions."

There is now intensifying pressure on test equipment manufacturers to make VTE with high functionality available at lower prices. Proving return on investment (ROI) is also a significant challenge for VTE vendors.

"VTE vendors should focus on providing a high level of open system design, modularity and flexibility in their hardware and software architectures," concludes Bommakanti. "This will help sustain market momentum."

If you are interested in more information on this study, please send an e-mail with your contact details to Anna Zanchi, Corporate Communications, at anna.zanchi[.]frost.com.

Global Video Test Equipment (VTE) Market is part of the Test & Measurement Growth Partnership Service programme, which also includes research in the following markets: World Oscilloscopes Market, World Modular Instruments Market and World General Purpose Test Equipment Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

 
 
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Video Testing Equipment Vendors Set to Ride the Cresting Wave of Digital Television Says Frost & Sullivan

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