New analysis from Frost & Sullivan, World Fibre Optic Test Equipment Market, reveals that revenues in this market totalled $1.09 billion in 2001 and are projected to reach $1.27 billion by 2008.
‘Many industry participants expect new competitors to emerge as the market for fibre-optic test, measurement and monitoring equipment expands and evolves in response to technical innovations,’ said Frost & Sullivan Industry Analyst Sailaja Vepa.
‘The inability of fibre-optic T&M equipment vendors to anticipate or respond to new technological developments and customer requirements could have a negative impact on their business, financial condition, and results of operations.’
The markets addressed by current and planned products are rapidly evolving and are characterised by emerging standards and competing technological platforms.
Vendors have to ensure that products destined for sale into markets will adequately address the requirements dictated by evolving standards, or that the vendors are able to adapt their products to changes in technology.
Accordingly, vendors must invest in products and technologies that gain market acceptance. The inability to do so could have a material adverse effect on their businesses.
The test equipment manufacturers are under pressure to constantly evolve, innovate, and enhance the testing capabilities of test systems. This could have a strong impact during the forecast period.
‘Despite the grim picture that the optical networking industry presents, test equipment vendors have much to look forward to,’ stated Vepa. ‘The continued growth in optical technologies enables test equipment vendors to gain marginal sales even in these tough times.
‘The key to being successful in today’s market place is understanding customer needs and offering solutions that reduce cost, improve operational efficiency and directly affect profitability.’