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Ambitious national broadband plans, FTTX and 5G to multiply opportunities in the segment, 2018
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The fiber optic test equipment (FOTE) market in the Asia-Pacific is witnessing strong growth due to a confluence of trends. Fiber proliferation and fiber maturity in the region has been accelerating as a result of aggressive national broadband plans and increased fiber investments from telecom operators, enterprises, and cable TV operators. Government-backed broadband and fiber deployment plans have garnered strong demand for fiber testing tools and equipment. Southeast Asia has been undergoing fiber transformation, with increased activity from telecom and cable operators to meet growing bandwidth demands in the region. India, Vietnam, and the Philippines will be the key growth regions for fiber optic testing, with favorable market environments and ambitious fiber plans for the next five years. Although in the trial stage, 5G is slated to be a huge driver for fiber optic testing with its inherent stringent network requirements that will propel continuous testing and monitoring to ensure low latency and high network speed. 5G network trials have already boosted the fiber testing market. The implementation of new fiber infrastructure for 5G fronthaul and backhaul applications will renew the opportunities for fiber optic test equipment vendors in otherwise fiber mature regions of East Asia. China is expected to be a big revenue generator for the fiber testing market with its concurrent national broadband plans and commercial deployments of the 5G technology. Maintenance and assurance applications are expected to experience high growth due to increased end-user awareness for ensuring network performance over time.Among the different types of fiber test equipment, optical time domain reflectors (OTDRs) will witness strong growth in the region, followed by fiber inspection probes (FIPs). FOTE vendors will experience increasing dependence on indirect sales channels as they provide stronger regional support and capture growing opportunities in regional markets. With an expected rise in testing needs to meet the deployment of 5G fibers, end users will be looking for one-stop shop solutions that can provide efficient and accurate testing. Integrated fiber optic test products and automation of testing procedures will be growing trends among FOTE vendors to provide optimum support to end users. As price remains a key competitive factor, market participants will be evolving their product portfolio to add value and educate end users on their products to offset the rapid price erosion of FOTE.
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