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Worldwide Test and Measurement Revenues to Reach $6.7 Billion in 2008

4th November , 2004

US : In the aftermath of the telecommunications market collapse, equipment, software, and service providers are rededicated to test and measurement solutions that will ensure availability and reliability for the entire network life cycle. This renewed commitment will result in worldwide test and measurement revenues growing to $6.7 billion in 2008, an 11% compound annual growth rate (CAGR) from 2003-2008, according to a new report from IDC.

"Finding and eliminating weak links in communications networks remains a serious challenge for communications engineers," said Elisabeth Rainge, program director, Next-Gen OSS, Billing and Network Management at IDC. "Over the course of the network lifecycle, test equipment actually reduces the total cost of ownership for communications equipment and minimizes the cost of operating the equipment and related service." Establishing and sustaining the dependability of new technologies and innovative services is critical to the success of equipment companies, service providers, and customers.

The opportunities for network test and measurement vendors continue to expand with the evolution of next-generation wireless networks. Those vendors with broad wireless strategies (beyond 3G test) will be best positioned to gain market share. Although the most compelling tests remain user-centric, such as drive test or response time, handset testing is becoming increasingly important as well. Add to that a blurring of lines between traditional handsets and consumer electronics devices, and an even larger pool of opportunity begins to emerge.

Other key findings from the new IDC study include:

-- Test and measurement players are under tremendous pressure to deliver tools based on open standards

-- Through the first half of 2004, Agilent remains the market leader with 36.6% market share

-- The research and development (R&D) market feeds the network lifecycle and supports a long-term revenue stream for network test and measurement vendors

-- Today's network test and measurement market is made up of 25-30 vendors

-- Emerging areas for wireless test include wireless LAN, WiMax, consumer devices, and RFID

The study, Worldwide Network Test and Measurement 2004-2008 Forecast (IDC #31920), provides a market sizing and forecast of the network test and measurement market from 2004 to 2008. It focuses on the key issues and opportunities that will influence growth in the market.

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