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New Technologies Positively Impacts Fiber Optic Test Equipment Markets
added: 2007-02-09

With revenues of $631.9 million in 2005, the global markets for fiber optic test equipment (FOTE) saw an increase of about 3.0 percent over the previous year, primarily due to the emergence of new technologies such as reconfigurable optical add/drop multiplexer (ROADM).

ROADM has played a significant part in boosting these markets in various areas of application such as research and development, manufacturing, and installation and maintenance (I&M).

This is particularly the case for dense wave division multiplexing (DWDM) test equipment.

Overall, the optical component network equipment market is witnessing higher growth than before. An increase in deployments of wavelength is expected to occur in the near future and is likely to boost the growth of ROADM technology. When compared to the manual deployment of DWDM carried out earlier, the ROADM assists in delivering better services with the help of remote software control, notes the analyst of this research service. This technology has been a key driver of the FOTE markets and is likely to continue enhancing revenues throughout the forecast period.

Developments in Access Networks Drive FOTE Markets

Triple play services have provided a strong boost to the fiber optic market over the past year, thereby driving the related markets for fiber optic test equipment as well. This can be attributed to developments in access networks, which assist in deploying triple play services. There is an increasing need in the market today for higher bandwidth in the access network, says the analyst. Besides, metro area networks have increased exponentially, with most end users of FOTE opting for this method of bringing higher bandwidth to their customers and this is driving the growth of FOTE vendors.

The impact of this driver on the FOTE markets is expected to be high during the short and medium term of the forecast period. It is likely to reduce to a medium to high level in the long term, as access networks become more widespread in metro regions.


Source: Business Wire

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