Global LAN/WAN Test Equipment Market to Reach US$1.16 Billion by 2017, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on LAN/WAN Test Equipment markets. The global market for LAN/WAN Test Equipment is projected to reach US$1.16 billion by the year 2017, primarily driven by growing demand from private enterprises, advancements in telecom sector, and growing concerns over network security. Robust demand from developing markets, especially Asia-Pacific, also augurs well for the market.

LAN/WAN Test Equipment: A Global Strategic Business Report

Follow us on LinkedIn - The remarkable growth of computer networks since introduction of the Internet and the subsequent development of new technologies to enhance network functionality have triggered off demand for network test equipment worldwide. Designed to monitor and troubleshoot network related issues, LAN/WAN test equipment has become a major part of network operations, and gained wide acceptance among private enterprises, service providers, and network equipment manufacturers. Demand for network test equipment has increased with private enterprises need to continuously monitor network integrity, and service providers’ requirement for optimal network performance. LAN/WAN test equipment checks network reliability, throughput, and quality of service, and also ensure network stability needed by both service providers and private enterprises.

Demand for LAN/WAN test equipment in the recent years is highly supported by the latest developments in communication technologies, including VoIP (Voice over Internet Protocol), 10GbE (Ten Gigabit Ethernet), VPN (Virtual Private Network), and PON (Passive Optical Network). Further, the demand is influenced by the initiation of 40 Gigabit Ethernet (40GbE) deployments, wireless networks, Gigabit PON (GPON), and triple play services, including video, voice, and data. Development of FTTH (Fiber-To-The-Home), and enhancing bandwidth needs are further expected to support the growth of network test equipment market in the next few years.

The recent global economic meltdown, which sent ripples of unrest in most business sectors during 2008 and 2009, not surprisingly left the worldwide LAN/WAN Test Equipment market hurting. With the financial crisis led economic slowdown negatively impacting every company’s IT structure, world market for LAN/WAN Test equipment stood significantly weakened during the period. Budgetary constraints, lack of capital for investments in IT assets and the general strategy of “doing more with less” took its toll on LAN/WAN test equipment as spending on network infrastructure witnessed a significant fall. With several companies throwing plans to deploy expensive wireless network infrastructure and endpoints for regional offices onto the backburner until signs of an economic recovery, new orders for LAN/WAN test equipment took a severe blow during 2009. Lack of strong budgets to fund equipment replacements also forced companies to focus on optimally utilizing their existing test equipment rather than investing in replacements or upgradation, thereby dragging down growth further in the market.

Another major factor that squeezed revenues for the market during the recession was the rise in demand for pre-owned as well as rental LAN/WAN test equipment. Affordable and available with same warranty and product support as in newer equipment, these products have been safe bet for end-users during weak economy. Cost wary end-users, especially those keen on surviving the crisis, mostly preferred rental or pre-owned equipment, thus squeezing revenues for LAN/WAN test equipment manufacturers.

Following drastic slowdown in revenue growth during 2009, the global market for LAN/WAN testing equipment staged a healthy comeback in the year 2010, primarily driven by resurgence in growth fundamentals such as improvement in global economy, and subsequent improvement in spending power among end-users and resurgence in network infrastructure investments. Going further, growth in the LAN/WAN test equipment market will be primarily driven by mass proliferation of advanced technologies and applications such as WiMax, and 3G/3.5G, especially in relatively large untapped markets in Asia Pacific such as Bangladesh, Hong Kong, Pakistan, South Korea and Singapore. Increase in global number of wireless subscribers and cell site constructions, addition of new global as well as regional frequency bands, such as WiMax bands of 2700MHz and 2500 MHz internationally and AWS in Canada and the US, and the increasing shift towards all-IP networks, particularly the use of IP multimedia subsystem (IMS) technology will boost market prospects for LAN/WAN Test equipment over the next few years.

With enterprises fast migrating their valuable data from traditional TDM based networks to advanced IP based LAN/WAN networks, its opportunities galore for LAN/WAN Test equipment. The need for business continuity and increasing deployment of Wireless Networks in enterprises will also create tremendous market opportunities for advanced LAN/WAN test equipment in the enterprise segment. The market will also be driven by continued advancements in telecom sector. Heavy investments being made by telecom carriers on new IP technology, wireless infrastructure and fiber for providing state-of-the-art video, voice, and data services will create significant demand for LAN/WAN test equipment in the telecom industry. The ever-increasing proliferation of triple play services and complexity of networks demand high bandwidth speeds, fostering the demand for technologically advanced testing solutions.

As stated by the new market research report on LAN/WAN Test Equipment, the US continues to remain the largest regional market worldwide. Asia-Pacific represents the fastest growing regional market displaying a CAGR of about 6.5% over the analysis period. Performance Analyzers & Stress Testers represents the fastest growing market segment, by product type. Growth in this segment will be especially driven by technology developments and introduction of products with advanced features such as those capable of checking entire OSI (Open Systems Interconnection) layers into one system.

Major players in the marketplace include Agilent Technologies Inc., Anritsu Corporation, AOIP SAS, Digital Lightwave Inc., EXFO Inc., Fluke Networks, Harris Corporation, Ixia, JDS Uniphase Corporation, LeCroy Corporation, Network Instruments LLC, RADCOM Equipment Inc., Spirent Communications Plc., Sunrise Telecom Inc., Tektronix Inc., Wilcom Inc., and Yokogawa Electric Corporation.

The research report titled "LAN/WAN Test Equipment: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections (US$ Million) for product segments Protocol Analyzers; Performance Analyzers & Stress Testers; and Conformance & Interoperability Test Systems, across all major geographic markets such as the US, Canada, Japan, Europe, Asia Pacific, and Rest of World. The report also analyzes market by application type Research & Development, Production Process, and Installation & Maintenance.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
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