India's Wireless Communication Test Equipment Market Sees Strong Growth

The Indian wireless communication test equipment market is positioned for good growth with investments in R&D and infrastructure development, bolstered by growth in the mobile phone market and the advent of next-generation wireless technologies.

However, accompanying this will be challenges such as the demand for lower prices and intense competition. Although the current economic slowdown has temporarily retarded demand, the situation is expected to ameliorate within a quarter to put the market back on its high-growth trajectory.

New analysis from Frost & Sullivan finds that the Indian base station and air interface test equipment market was worth $5.40 million in 2007 and is expected to generate revenues of $9.29 million in 2011. The Indian mobile station test equipment market generated $18.80 million in 2007. The revenues are expected to grow to $39.98 million in 2011.

"The penetration and growth of mobile phones is a significant driver for the wireless communication testers market," says Frost & Sullivan Program Manager Deepa Doraiswamy. "India is now the second largest wireless market in the world."

A key factor driving the market for wireless communication test equipment is the phenomenal growth in the mobile phone market over the last 4-5 years, resulting in a 275 million-subscriber base in 2008. With the addition of close to 10 million users each month, the subscriber base is expected to touch 750 million in 2012. Further, the number of locally made GSM handsets is expected to rise from 72 million in 2008 to 100 million by 2010. Export activity is likely to pick up in the future.

Quality of service (QoS) is undoubtedly a critical aspect of the communication industry. However, with the advent of third-generation (3G) technology, it becomes difficult to offer several value-added services of 3G over existing offerings without compromising on QoS. Service providers will be challenged by interoperability and interference and will require adequate test support tools, as 3G, wireless-integrated multiple accesses (WiMax), and other wireless technologies need to be supported in the same device.

"In sync with the global trend, 3G wireless networks will be integrated with wired next-generation IP networks in the future to enhance the service capabilities by providing voice, data, graphic, and voice-based information at a higher speed, along with internet connectivity," says Doraiswamy. "In such converging 3G wireless and wired next generation IP networks, ensuring QoS will be the foremost challenge for mobile service providers."

Wireless standards are evolving rapidly with increasing bandwidth and higher data transfer rates. It is uncertain which standard will emerge as the single-most dominant standard. In such a scenario of multiple standards being deployed, wireless test manufacturers should develop products conforming to the latest standard.

"Test equipment vendors need to closely associate with network operators and equipment manufacturers to understand their challenges and add the necessary features to their testers for better QoS," concludes Doraiswamy. "Test vendors should keep abreast of evolving wireless technologies and interoperability issues arising out of their coexistence to scale their products and address future testing requirements."

The research also covers the markets for drive testers, antenna and cable testers and wireless router test equipment.

Posted to the site on 26th May 2009