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Growth of the LAN/WAN Test Equipment Market
added: 2007-07-03

Private enterprises appear poised for significant growth in the local area network (LAN) and wide area network (WAN) test equipment market, after previously ranking as the second largest end-user segment in 2006.

”The growth of private enterprises is expected to remain high and generate large revenues especially through large private enterprises and government organizations,” notes Frost & Sullivan Senior Research Analyst Sujan Sami. „With large enterprises deploying LAN/WAN in their premises, the need for the performance analysis of the networks has been on the rise and this is expected to increase the revenues of this market segment.”

Quality of service (QoS) has become more important in such large organizations. Hence, enterprises will likely depend on a number of providers such as national carriers, equipment vendors, system integrators and global service providers for effective as well as high quality performance.

Moreover, online trading, e-commerce and triple play all augment the private enterprises environment. Hence, the need for IT networks and the importance to test these networks have become critical. Security issues such as leakage losses and breaching necessitate the use of test equipment that can cope with emerging technologies.

The introduction of newer technologies, such as 10 gigabit Ethernet in the LAN/WAN test equipment market, also greatly influences growth. Test vendors now focus on higher range gigabits, as the market has already experienced 40 gig deployments. In addition to voice and video services, specific deployments for data transfer technologies have also enhanced market growth.

However, vendors face difficulties in educating their technicians as well as their customers due to the emergence of new technologies at a regular pace coupled with the limited availability of engineers.

Keeping abreast of new technologies and anticipating their emergence will ultimately facilitate vendors efforts to reach their target customers more efficiently. This can enable them to effectively garner revenues and contribute to the overall growth of the market.

The Asia Pacific region holds potential for growth in the future. Despite generating lower revenues due to the dollar value, this region contributed greatly toward the growth of the LAN/WAN test equipment market in 2006.

”Many tier 1 market participants have quickly recognized the value of China, India, and Singapore and are directing their efforts toward setting up branches or selling their test equipments through indirect sales,” notes Sami. „In addition, the number of local and regional vendors has increased since 2002 and this is likely to continue till 2013.”


Source: Business Wire India

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