Fiber deployment by both mobile network operators and cable MSOs in support of next-generation networks will help drive increased demand for fiber testing, according to a new report from analyst firm Frost & Sullivan.
Mobile network operators are deploying fiber to support 5G, including Fixed Wireless Access, while cable companies are working on more extensive fiber build-outs as well. Frost & Sullivan projects that the market for fiberoptic test equipment will grow from $781.3 million in 2018 to $1.31 billion in 2025, and that a lack of fiber testing expertise among network technicians, combined with the sheer volume of deployments in a compressed time period, presents an opportunity for equipment manufacturers to differentiate themselves.
“A significant development that is impacting demand for optical test equipment is the evolution of 5G and its fixed wireless access (FWA) trials. 5G is expected to support the wide-scale implementation of fiber and boost the demand for test equipment,” said Sujan Sami, program manager for Frost’s Measurement and Instrumentation practice, in a statement. “Telcos and cable MSOs will be the biggest growth drivers for FOTE manufacturers, generating $4 billion in revenue between 2018 and 2025.”
North America is the largest regional market for fiberoptic test equipment, according to Frost & Sullivan, but demand is also growing in Europe and in Latin America. The analyst firm said that successful vendors will be the ones which tap into growth opportunities including collaborations with Tier 1 and 2 service providers on innovation and addressing workforce skills gaps in fiber testing; providing smarter, customized Optical Time Domain Reflectometer testing; and developing strong networks of partners in strategic locations, as well as good relationships with governments and contractors to support government cybersecurity projects.