5G, data centres and IIoT spur demand for gigabit Ethernet test

The buzz around 5th Generation (5G),  cloud computing and Industrial Internet of Things (IIoT) is getting louder as customers become aware of the benefits to be had from the use of these advanced technologies. These technologies require intensive R&D spending, high-speed network testing and broad bandwidth infrastructure, which soars up the demand for Ethernet test equipment across data centres and various end-user verticals. Test and measurement (T&M) vendors are willing to invest in research and explore novel approaches to offer a high degree of flexibility in terms of cost, quality, and performance.

“As telcos and enterprises reshape their network infrastructure, T&M vendors are creating solutions that will allow them to harness the demand for GbE testing from data centersand web-scale companies,” said Krati Bhargava, senior research analyst measurement & instrumentation. “Test offerings that are scalable and include aftermarket services will secure them greater market share.”

Frost & Sullivan’s recent analysis, Global Gigabit Ethernet Test Equipment Market, Forecast to 2022, identifies the ways in which Gigabit Ethernet test equipment manufacturers across the world can help network equipment manufacturers (NEM), service providers, and enterprises address the challenges brought by limited bandwidth, economic uncertainty, and price pressures. The study includes forecasts, the competitive structure, market share analysis, and various market and geographical trends.

Among the major markets, North America has an established, consolidated GbE testing market. However, market-savvy participants will be looking to widen their footprint in developing markets in Asia-Pacific due to the expanding application areas for GbE notably in industrial communications.

T&M vendors with global ambitions need to develop innovative offerings that will enable them to make the most of the following growth opportunities:

  • Asia-Pacific’s evolution beyond manufacturing, and its R&D efforts in Ethernet applications. China, Japan, India, Singapore, Taiwan, and South Korea are the major countries driving demand for GbE testing.
  • Need for customised and scalable solutions to meet the demand from IIoT applications. Vendors must enhance the equipment’s performance, simplicity, cost efficiency, and ease of use.
  • Price pressures that compel T&M vendors to tap software and service revenue streams.
  • Industrialisation, urbanisation, digitalisation, and mechanisation that intensify the need for superior products and business models.

“As customers tend to be cost conscious, GbE test vendors could attract them with subscription-based, customised options,” noted Bhargava. “Large vendors looking to enter new markets need to seek out strategic partnerships with local vendors for providing integrated solutions and uninterrupted services to potential customers in these areas.”

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