Fiber Optic Test Equipment Makers Advised

PALO ALTO, Calif., March 23 -- As end users increasingly expect testing solutions to contribute to their bottom line, fiber optic test equipment manufacturers need to develop equipment that lowers testing costs and minimizes the time to market, according to a new analysis from Frost & Sullivan.

The report, "World Fiber Optic Test Equipment Market" says this market accrued revenues worth $598.1 million in 2003 and is poised to expand to $861.8 million by 2010.

"There is an urgent need for upgraded and scalable solutions that zero in on the core needs driving customer businesses," said the publisher.

"The test instrument must be scalable in its architecture so that future enhancements are a possibility," said Frost & Sullivan Research Analyst Ganapathi Subramanian. "It may not be beneficial if the end-user has to keep purchasing new equipment due to technology advancements."

The fiber optic test equipment market may also see an augmented demand for equipment compliant with technological changes, the company said.

"The present competitive scenario has made product differentiation and scalable solutions crucial, pushing fiber optic test equipment manufacturers to incorporate updated and inventive technology," Subramanian said. "Elementary functions may no longer increase the existing customer base, thereby making product enhancements an important means for expanding the market."

He said fiber optic test equipment manufacturers should "not be underestimated" by niche marketing. "As a tug-of-war continues in the competitive arena, manufacturers will benefit from channeling efforts to cater to one particular segment. This enables them to provide innovative equipment directly meeting end-user needs."

These niche market suppliers will reduce cost of testing, improve price performance and reduce time to market, thereby contributing directly to the bottom line of end-users, he added.

He said a global perspective can also open up new areas for the fiber optic test equipment market and aid in compensating for the lack of demand in one region by extending products to better prospects. Though Europe and North America have large and established fiber optic networks, future deployments in Asia-Pacific, especially in countries such as China and India, provide considerable possibilities for growth, according to the company.

For more information, visit: www.frost.com