According to the latest report by Future Market Insights, the 5G testing equipment market is anticipated to grow at a CAGR of 26% from 2022 to 2032, reaching a value of US$ 16.5 billion. The industry’s estimated value as of 2021 was US$ 1.3 billion, and by 2022, it is anticipated to reach US$ 1.6 billion, representing a 23% Y-o-Y growth rate.
Evolution in area of network connectivity right from 2G, 3G, to 4G and now 5G, which is one of the latest network connectivity technology. Increasing smartphone penetration and other connected devices are fueling the need for using such connecting technologies and these are tested using 5G testing equipment.
For establishing a secured and most reliable 5G network the tests are constantly performed so that network operation failure is eliminated and 5G testing equipment is used for testing of such network issues. The providers of 5G testing equipment focus on innovations until the commencement of commercial deployment of 5G.
The 5G testing equipment providers have the potential opportunity to enter the 5G market and develop the most suitable and application-oriented 5G testing equipment products. Applications of 5G are expanding day by day due to IoT, connected devices, and also the availability of large data centers is making it easier to deploy 5G technology using 5G testing equipment.
The commercialization of 5G is estimated to begin in 2019 and this is a prime factor creating a potential opportunity for 5G testing equipment. Increasing penetration of 5G in areas including entertainment, automotive, construction, medical, security, and others are creating a need for using 5G testing equipment.
Constant research and development for making 5G testing equipment that is industry compliant and more application-oriented are expected to drive the 5G testing equipment market over the forecast period.
5G Testing Equipment Market: Drivers and Restraints
The emergence of a hyper-connected world is one of the prime factors which is expected to fuel the demand for 5G testing equipment. Increasing usage of connected devices in developing economies such as India, China, and others is creating data traffic in the network which is creating a need for establishing a secured and efficient network.
Hence, of the increasing need to control data traffic, the 5G technology is expected to witness a boom in demand which is ultimately driving demand for 5G testing equipment. Connectivity in different devices such as wearables, connected cars, smartphones, and other consumer electronics devices such as smart home devices will increase the demand for 5G testing equipment.
This factor is expected to be observed due to the high speed of 5G and the availability of wired and wireless technology making the connectivity process easier. High acceptance of 5G is expected due to the above-mentioned factors which are creating an increasing demand for 5G testing equipment.
On the other hand, the total cost involved in using 5G testing equipment for the establishment of a 5G network, and issues involved because of multiples carrier is some of the key challenges affecting the adoption of 5G testing equipment. Such factors ultimately hamper the adoption of 5G testing equipment and hence these are some of the challenges affecting the growth of the market.
Segmentation Based on Type
On the basis of type, the 5G testing equipment market is segmented into signal genes Being one of the latest and fast emerging technology 5G is expected to be an evolution in the area of network connectivity, to leverage this opportunity the 5G testing equipment providers are performing up-gradations in their devices.
This factor is expected to be one of the key strategies followed by 5G testing equipment providers. Some of the leading 5G testing equipment providers include MACOM, VIAVI Solutions, Anritsu, ROHDE&SCHWARZ, Keysight Technologies, LitePoint, and others. Raptor, signal analyzer, network analyzer, Oscilloscopes, and others.
- North America region is one of the prominent markets for 5G testing equipment as this region has a strong presence of network service provider companies such as AT&T which are early adopters of 5G testing equipment. The research and development are constantly performed using 5G testing equipment in this region to integrate 5G in healthcare applications and smartphones to improve the performance of a network.
- Europe is expected to follow the North American region in terms of demand for 5G technology and hence 5G testing equipment. This demand for 5G testing equipment in Europe is fuelled by increasing 5G testing activities in this region such as Vodafone announcing its plan to start up 1,000 5G testing sites in the UK in 2019.
- Such increasing testing activities are driving the 5G testing equipment market growth significantly. APEJ region is expected to witness a significant CAGR growth rate due to the rapid penetration of IoT and connected devices in this region and this factor is creating a need for using 5G testing equipment for establishing a 5G network.
- Japan is one of the early adopters of 5G testing equipment as the automotive manufacturers of this region are focusing on connected cars. For example, NTT DOCOMO and Mitsubishi Electric Corporation together achieved 25 to 27 Gbps download speed in the vehicles using a 5G network.
The report is a compilation of first-hand information, qualitative and quantitative assessments by industry analysts, and inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The report also maps the qualitative impact of various market factors on market segments and geographies.
Being one of the latest and fast emerging technology 5G is expected to be an evolution in the area of network connectivity, to leverage this opportunity the 5G testing equipment providers are performing up-gradations in their devices.
- This factor is expected to be one of the key strategies followed by 5G testing equipment providers. Some of the leading 5G testing equipment providers include MACOM, VIAVI Solutions, Anritsu, ROHDE&SCHWARZ, Keysight Technologies, LitePoint, and others.