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Incumbent Market Participants Play a Dominant Role in the Asia Pacific FOTE Markets Finds Frost & Sullivan - Increased bandwidth speed, installation of FTTH capacity and more wavelength create demand for sophisticated test equipment - TestandMeasurement.Frost.com
Incumbent Market Participants Play a Dominant Role in the Asia Pacific FOTE Markets Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Singapore, Singapore, 2011/07/27 - Increased bandwidth speed, installation of FTTH capacity and more wavelength create demand for sophisticated test equipment - TestandMeasurement.Frost.com.

   
 
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Regulations and standards to build infrastructure are triggering growth in broadband access, and, in turn, the fiber optic test equipment (FOTE) markets. New infrastructures being built in China and India are the front-runners for the FOTE markets. Japan has a strong presence from incumbent companies Anritsu and Yokogawa. In addition, countries such as India, China, Korea, Taiwan, Malaysia and Singapore face more competition from global vendors as well.

Agilent moved away from installation and maintenance (I&M) FOTE markets in 2009 to focus on its core areas of R&D. However, the company still sells I&M products through its distributors in the Asia Pacific countries. Despite customer claims that Agilent's products are highly priced, the company has been able to maintain its brand recognition due to the ruggedness of its products.

New analysis from Frost & Sullivan (testandmeasurement.frost.com), Asia Pacific Fiber Optic Test Equipment Markets, finds that the market earned revenues of over US$153.5 million in 2010 and estimates this to reach US$215.0 million in 2015.

"The economic downturn impacted the aerospace and defense (A&D) sector and its repercussions were felt in the FOTE market," says Frost & Sullivan Research Analyst Sujan Sami. "However, with recession waning, the A&D sector is growing with countries avidly purchasing defense material, bolstering the FOTE market."

In India, 3G deployment is in the nascent stage, and the future is optimistic for vendors to grow in this region as well as globally. With 4G deployments, more fiber to the home (FTTH) is expected to boost growth of the FOTE. However, this is a challenge for vendors both due to the presence of dark fibers and regional hurdles. As the need for higher bandwidth increases, carriers will be required to deploy 40 Gb/s.

Customers in the Asia Pacific region are hesitant to use test products, and this has hindered FOTE markets growth. Low-cost manufacturers in China pose an immense threat to global companies. Price pressure is significant in this region as foreign vendors compete with incumbent market participants. Offering after-sales services have become challenging for tier II vendors, specifically in the FOTE markets, in the absence of local presence, particularly in countries such as China.

To remain competitive in this region, tier II and tier III vendors in the FOTE markets specifically need to keep up with the increasing tech speed. Continued demand for increased bandwidth speed, installation of FTTH capacity and more wavelengths will necessitate sophisticated equipment in the core network. The distribution structure can determine a company's success. Test vendors must follow a distribution structure that suits all end users.

"Indirect sales through distributors would be appropriate for small companies," says Sami. "Allocation of specific account managers and executives will benefit large companies that are building long-term relationships."

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Asia Pacific Fiber Optic Test Equipment Markets is part of the Test & Measurement Growth Partnership Service programme, which also includes research in the following markets: World Communication Test Services Market, World LAN/WAN Test Equipment Market, and SONET/SDH Test Equipment Market. All research services 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 (frost.com), 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.

Asia Pacific Fiber Optic Test Equipment Markets / 4P43

 
 
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Incumbent Market Participants Play a Dominant Role in the Asia Pacific FOTE Markets Finds Frost & Sullivan

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