Chinese general purpose test equipment market to grow at CAGR of 9.4% during 2011-17

Telecom Lead Asia: The General Purpose Test
Equipment Market in China is expected to grow at compound annual
growth rate (CAGR) of 9.4 per cent between 2011 and 2017. The market was
estimated to post $415.9 million in revenue in 2011, and estimates revenue to
reach $713.5 million by 2017, according to Frost & Sullivan.


The study said that China’s constant investment in its
telecom and aerospace and defense industries are boosting the demand for
general purpose test equipment.


However, the study added that such demand is leaning
towards customized and integrated products and likely to threaten the
conventional stand-alone test equipment market over the forecast period.


During the 12th Five-Year Plan period (2011 to 2015),
China will accelerate the development of 4G by conducting large-scale
experiments on its own TD-LTE technology and putting it to commercial use.


“Test equipment vendors are continuously improving
their high-end products to deliver better performance as well as their
capability to manage wider bandwidth and digitally-modulated signals at higher
frequencies. For that purpose, vendors are consistently investing in research
and development to keep pace with technological advancements,” said Frost &
Sullivan Research Analyst Wei Wei.


The report suggests that the continuous development of
wireless communication standards, the move to higher frequencies, and the
increasing need for bandwidth will be the main factors driving the demand for
general purpose test equipment market.


High-end customers are more concerned with higher
bandwidth, accuracy, and operating systems than price; therefore, product
introductions are one of the key strategies adopted by vendors to sustain
expansion in this competitive and steady growth market.


On the other hand, Wei said that customers, particularly
in the mid- to low-end test equipment market, are highly price-sensitive and
transfer this price pressure to the equipment manufacturers. As a result,
leading companies offer significant discounts to build their market share.


Chinese wireless test equipment market reaches $265 million in


The Chinese wireless test equipment reached $264.8
million in 2011.


Main growth drivers are mobile data traffic and the
application of mobile Internet. TD-LTE offers more bandwidth and ensures more
efficient data transfer, which spurs the demand for wireless test equipment.


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