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Test & Measurement | April 03, 2009

Fiber Optic Test Equipment Markets grow

In the world fiber optic test equipment (FOTE) markets two segments, the optical time domain reflectometer (OTDR) and the optical spectrum analyzer (OSA) have experienced higher growth rates than other segments. Even though the overall market recently has witnessed a decline because of the economic recession, growth rates project to pick up by this year, states Frost & Sullivan.
New analysis from Frost & Sullivan World Fiber Optic Test Equipment (FOTE) Markets finds that the market earned revenues of over $567.40 million in 2008 and estimates this to reach $618.52 million in 2013. The market segments covered in this research service are OTDRs, optical light source, optical power meters, optical loss test sets, OSAs, and remote fiber test system. "The demand for fiber to the home (FTTH) is more than the need for testing fiber optic cables and is the main factor driving the demand for testing equipment," says Frost & Sullivan Research Analyst Srihari Padmanabhan. "In the United Kingdom alone, the number of houses installed with fiber expects to cross over four million by 2013."

The demand for higher bandwidth and FTTH remains the main growth driver for FOTE products and the need for these products will rise in the future with the progress of next generation networks and other new technologies. The evolution of reconfigurable optical add/drop multiplexers (ROADMs) is a key trend accelerating the demand for fiber optic testing. "There is mounting pressure from customers on manufacturers to bring down the price of products because customers expect equipment with more features at a lower cost," explains Srihari Padmanabhan. "In the current economic situation, this will reduce the manufacturers' profit margins."

As the FOTE market matures, it remains vital to identify emerging technologies and growth opportunities as early as possible in order to expand or even maintain market share. Reduced product innovation and fewer product features will make survival in this market difficult. "FOTE manufacturers should be able to quickly assess the needs of their customers and find solutions," concludes Padmanabhan. "In this mature market, manufacturers should strengthen ties with existing customers and expand their customer base."

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