Growth Forecast for FO Test Equipment Markets

Revenues for fiber optic test equipment markets totaled $610 million in 2004 and are expected to reach $880 million in 2011, according to research analysis conducted by Frost & Sullivan. The international company’s report suggests that the expanding use of fiber to the curb/home/premise (FTTx) could broaden the demand for multimedia services such as high-definition television and music downloads, boosting profits for network operators.
The growing use of FTTx also is having a positive impact on the markets for optical light sources, power meters, loss test sets and time-domain reflectometers, as is the increasing demand for high-speed networks. The installation and maintenance segment of the market is expected to grow accordingly.
The industry is encouraged to introduce innovative technologies to overcome competition from the secondary or used equipment market, which decreases the revenue of the mainstream market. Small and medium-size companies are advised to expand globally and to provide customized solutions and client support through hardware and software upgrades and other services.
In 2004, the Asia-Pacific region accounted for nearly 24.1 percent of the demand for the test equipment, the report noted.