The global fiber optic testing equipment (FOTE) market is fragmented due to the presence of large number of players, observes Transparency Market Research. Leading players in the market are developing products with advanced technology. They are also engaged in expansion procedures to get larger geography under their purview. As customers are demanding for after sales services, advanced features, and continuous product support and customer services while purchasing has pushed players to continuously use new technologies for product development.
Players are also investing in merger and acquisition, partnership, and collaboration. For example, recently Fluke Corporation acquired small players including eMaint Enterprises and Hawk IR International. Few players analyzed in the report are EXFO Inc, Keysight Technologies, Tektronix Inc, JDS Uniphase Corporation, Yokogawa Electric Corporation, and Fluke Networks.
The global fiber optic testing equipment market is expected to progress at a CAGR of 5.7% over the projected period between 2017 and 2025. Over this period, the market is expected to earn US$0.93 bn, progressing from US$0.57 bn earned in 2016. All these figures are stated in terms os revenue. Based on product type, the demand in the optical time domain reflectometer (OTDR) segment is more as compared to other products. This segment is likely to hold dominant share in the market and is likely to maintain its position over the forecast tenure.
Developing defense sector in emerging economics where there is a substantial need for fiber optic testing equipment has brought Asia Pacific as a leading region in this market. Moreover, increasing use of fiber optic devices in telecommunication is also expected to spur growth the global fiber optic testing equipment market in Asia Pacific. The Middle East and Africa is also expected to contribute in growth of this market. Increasing use of smartphones and other electronic devices has fueled demand for fiber optic instruments in this region.
One of the biggest benefit of fiber optic communication systems is that it has revolutionized the telecommunication industry at a large. Developments taking place in broadband infrastructure in various regions is expected to fuel growth in the global fiber optic testing equipment market. Moreover, increasing demand for high performance and faster data transfers is boosting growth in the global fiber optic testing equipment market.
Furthermore, fiber optic testing equipment helps in meeting the higher bandwidth needs required by high-definition electronic products, and in increasing use of digital technologies. Rapid deployment of FTTX is also estimated to expand the global fiber optic testing equipment market. Adding further, growing business services and multimedia houses are contributing in the growth of the global fiber optic testing equipment market.
The need for highly skilled professionals to manage the overall functioning of fiber optic testing equipment might limit growth in the global fiber optic testing equipment market. Moreover, use of fiber optic testing equipment in novel technologies such as LTE M2M (machine-to-machine) and LTE (Long-term Evolution) is a complex process and incurs additional cost.
Thus, training individuals for executing these services along with expensive product varieties are likely to challenge growth in the global fiber optic testing equipment market. Moreover, high initial investment and high maintenance cost are also expected to hamper growth in the global fiber optic testing equipment market. Seeing these conditions, players are also focusing on providing technical support and specialized customer service that will help reducing effect of these restraints.