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Chinese Fiber Optic Test Equipment (FOTE) Markets
Frost & Sullivan, April 2007, Pages: 128
This Frost & Sullivan research service titled Chinese Fiber Optic Test Equipment Markets provides a detailed analysis of market drivers and restraints, total market size, market penetration, and the market segment revenue breakdown. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following market segments: optical time domain reflectometer (OTDR), optical light source (OLS), optical power meter (OPM), optical loss test set (OLTS), remote fiber test system (RFTS), dense wave division multiplexer (DWDM) test, optical spectrum analyzer (OSA).
New Technologies Impel Growth in the Chinese Fiber Optic Test Equipment Markets thereby Facilitating Demand to Meet Supply
Although the Chinese fiber optic test equipment (FOTE) market has reached a stage of maturity, rapidly evolving standards and technologies are fostering renewed demand from all end-user industries including telecommunication companies and carriers, Government and defense, fiber optic component cable and equipment manufacturers, integrators and installers, independent research laboratories and cableTV operators. New technologies such as triple play services, high-bandwidth networks, multipurpose test equipment and fiber to the x (FTTx) have played a significant part in boosting FOTE markets in various areas of application such as R&D, manufacturing, as well as installation and maintenance (I&M). Successful FOTE manufacturers will be the ones that align their R&D to keep pace with technological developments while providing more customer-centric solutions to increase market share.
The rolling out of broadband services requires a high bandwidth capacity over long distances. As service providers in China compete with one another to offer triple play to their customers, fiber optics offers them the best and only cost-effective solution. This driver for fiber optics is expected to positively impact the FOTE markets in the coming years. 'Another factor fuelling the uptake of FOTE is the Chinese Government funding the installation of more fiber optic cables as homeland security focus on network upgrades including passive optical networks (PON) and FTTx, x-curb, home, and premise,' says the analyst of this research service.
High Functionality, Cost-effective FOTE - the Way Forward
There is a high number of test equipment already in the Chinese market and end users are reluctant to invest in new systems unless their older ones need replacement. Thus, despite the boost provided by new technologies, upgrading existing test equipment to support these technologies is proving a challenge for test equipment vendors. This is increasing pressure on Chinese FOTE manufacturers to make available test instruments with high functionality for lower prices. 'Integrating new technologies into a single piece of test equipment could hold the solution to this challenge,' says the analyst. 'Multipurpose test equipment attracts buyers as they have added features like higher layer testing and they are available at a reasonable price.' This is fuelling demand for the FOTE market.
Product portfolios in the FOTE market are always expanding, and vendors are attempting to devise new methods to expand them. One way is by entering into alliances and partnerships. Many vendors are also exploring avenues in niche markets that widely accept and adopt novel technologies. They need to be educated on the new technologies to ensure faster adoption rates, which will create further opportunities for vendors.
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