The global LTE test equipment market generated revenues of $760.8 million in 2011 and is estimated to reach $2,845.6 million in 2018, driven by increasing wireless data and networks deployments, according to Frost & Sullivan.
The study notes that multiple types of test equipment and technologies for applications such as research and development, manufacturing, installation and maintenance and monitoring will push the growth of the overall LTE test equipment market.
The study suggests that the use of higher bandwidth-consuming applications and services will create numerous opportunities for wireless test equipment vendors.
At present, global LTE deployments are backward-compatible with existing GSM and code division multiple access (CDMA), Wi-Fi and WiMAX offerings.
Olga Yashkova, program manager at Frost & Sullivan said that the increasing LTE deployments pose a key challenge for wireless test equipment vendors.
"It is required ensure that the LTE devices work seamlessly with legacy networks, in addition to guaranteeing compliance with the latest LTE standards, Olga Yashkova added.
The study added that the multiple standards operating parallel with LTE are expected to create complex technical issues that need to be addressed, making interconnectivity with legacy networks a challenge.
The complexity associated with LTE testing, combined with the application-specific demands of customers, result in limited availability of LTE testing tools that meet the varying testing needs.
"As LTE is still a new technology with only a few SPs deploying it globally, end-users will prefer purchasing backward- and forward-compatible testing tools for future use and LTE trials," said Yashkova.
The Chinese wireless test equipment reached $264.8 million in 2011.
Latin American test and measurement equipment market to grow at 13% CAGR in 2011-2015
Wireless test and measurement (T&M) equipment market in Latin America is expected to grow at a CAGR of 13 percent during 2011-2015. Vendors dominating this market include Agilent Technologies, JDSU, Anritsu and Rohde & Schwarz.