Market Trends of Gigabit Ethernet Test Equipment Industry
This section covers the major market trends shaping the Gigabit Ethernet Test Equipment Market according to our research experts:
Telecommunication Segment is Expected to Hold a Significant Market Share
- The upgrades in the mobile backhaul for the imminent launch of 5G technology drive the need for robust GigE test equipment. Hence, rapid investments in the 5G technology are expected to boost market growth over the projected period. A few top communication and electronic companies have commenced their investments in 5G technology.
- The companies are also acquiring 4G and 5G bands which propel the growth of the gigabit ethernet test equipment market. For instance, In 2022, Telkom acquired 20MHz of 800MHz and 22MHz of 3500MHz for 2.1 billion. Telkom made a payment of MYR 1.1 billion. Telkom will use the newly acquired spectrum to support its strategy of building a data-led network. Telkom believes that 4G and 5G will co-exist for some time and is expanding its network based on current data traffic and readiness for 5G deployment. 93% of Telkom's data traffic is on a 4G network, and 68% of Telkom Mobile sites use fiber backhaul, giving Telkom the edge for 5G deployment
- The governments in various countries are also approving developments in the telecom sector; for instance, in May 2021, the Algerian government approved the five-year renewal of the telecoms network operating licenses of Mobilis and Djezzy. As per Agence Ecofin, the renewal of the licenses to build and operate public electronic communications networks (including cellular) was implemented via two draft decrees presented to the government on 11 May 2021, after the two companies met the requisite conditions.
- Companies are also forming partnerships to provide better services while controlling operating costs. For instance, during the start of 2021, Ooredoo Algeria deployed Nokia's cloud-native Core software to strengthen its network performance and reliability cost-effectively and strategically position itself to launch new services to meet customer needs. This deployment will further improve the digital ecosystem of the country.
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Asia Pacific is Expected to Witness the Fastest Growth Rate
- The Asia Pacific is expected to witness a significant growth rate over the forecast period due to the increasing deployment of wireless networks. Additionally, the increasing population, rising number of smartphone users, mounting adoption of cloud services, and emergence of Big Data are expected to fuel the market expansion in the region.
- There has been growing adoption of technologies, such as cloud, IoT, and Big Data. For instance, the government's strong support and the private sector's substantial investments are behind the growth of China's cloud computing industry. The South Korean government-employed cloud computing technologies to enhance its e-government services by banking on the country's super-fast internet connectivity and stable LTE availability.
- Notably, the companies in China have ample opportunities, owing to the rapid growth in future investments in 5G technology. For instance, according to an American multinational investment bank and financial services company, Jefferies Group, the three Chinese mobile players, such as China Telecom, China Unicom, and China Mobile, are expected to invest about USD 180 billion in 2023 in 5G technologies.
- The upgrades in the mobile backhaul for the imminent launch of 5G technology drive the need for robust Gigabit Ethernet Test Equipment. Thus, the rapid investment in 5G technology is expected to boost the market's growth over the projected period.
- According to Ericsson, Asia Pacific is expected to be the second-fastest-growing region, with 10% of all subscriptions being 5G in 2022. Few top communication and electronic companies have started investing in 5G technology. For instance, before the pandemic, Samsung announced investing KRW 25 trillion in various domains, such as automotive, biopharmaceuticals, and technology, including 5G.
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