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Unprecedented Growth in the Development of Communication Infrastructure is Fuelling the Demand for Communication Test Equipment
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The Indian communication test equipment market (comprising LTE test equipment, VoLTE test equipment, Wi-Fi test equipment, security test equipment, Ethernet test equipment, LTE-Advanced (LTE-A) test equipment, Cloud infrastructure testing and Cloud-based application monitoring) is split by region (North, South, West and East) and by end users (telecom service providers, Mobile device manufacturers, network equipment manufacturers, and enterprises and others). It is driven by ambitious initiatives by the government to improve the nation’s communication infrastructure, the expanding VoLTE market, the growth of data centers, advancing technologies, proliferation of IoT and IIoT, and a general requirement for high-speed internet and improved voice quality in calls. Some of the challenges faced by the industry are a rapidly evolving technology which calls for increased capital expenditure and the possibility of adverse market conditions/a general economic downturn which could affect the profitability of companies. Nevertheless, the market is expected to register a CAGR of 10.5% through FY2026.This study provides an analysis of the market’s growth potential, market concentration, the competitive environment, key segments and trends, highlights growth opportunities available to existing participants and new entrants, and provides revenue forecasts. Product segments covered are LTE test equipment, VoLTE test Equipment, LTE-A test equipment, security test equipment, Wi-Fi Test equipment, Ethernet test equipment, and Cloud infrastructure and Cloud-based application monitoring systems. Geographic coverage is confined to the Indian market.Keysight Technologies dominates the Indian communication test equipment market, with Rohde & Schwarz, Anritsu and Viavi Solutions being the other key participants. The Northern region dominates the market with a contribution of 35.6% to the total revenues and is followed by the Southern region.Key trends observed are that the LTE test equipment product segment contributed the highest to the total market revenues accounting for a share of 30.8%. Wi-Fi test equipment product segment contributed the next highest share at 16.9%. Ethernet test equipment segment is the fastest growing segment and is set to expand at a CAGR of 13.1% through FY2026.Critical factors contributing to success include developing products with universal applicability, increasing brand awareness while tapping into the modernization and upgrades market through appropriate promotions, optimizing R&D investments, improving response times, quality of repairs and after-sales services, and strengthening distribution channels.Digitalization is the key mega trend contributing to the demand in this market. Government initiatives to make India a digitally empowered economy and improve ‘connectedness’ are expected to increase government spending on communication infrastructure. In addition, expansion of the defense network program is likely to further contribute to the demand.The demand for LTE, LTE-A and VoLTE products and, in turn, testing equipment is likely to exist well into the future after 5G roll-outs as the service providers slowly migrate their subscriber base.
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