This report provides an in-depth analysis of the market drivers and restraints, industry trends, and competitive environment in addition to the challenges and issues faced by market participants. The analysis includes competitive structure and market share analysis by each product type. Revenue forecasts are provided for the total market and each geographic region - North America, Europe, Asia Pacific and Rest-of-World.

Market Overview

3G/4G, cell backhaul, and FTTH Bolster Prospects for the World Fiber Optic Test Equipment Markets

The world fiber optic test equipment (FOTE) markets are poised for growth on the back of increasing 3G/4G, cell backhaul, and fiber-to-the-home (FTTH) deployments. Several governments are implementing broadband initiatives in their countries, which will create more bandwidth demand, more networks, and the need to upgrade to 40gb Ethernet capacity. This strategy is expected to boost FOTE market growth. “The R&D sector is growing with increased demand for triple-play technology-voice, video, data, and increasing bandwidth requirements,” notes the analyst of this research service. “This is expected to spike demand for new test equipment.” Simultaneously, demand in manufacturing as well as installation and maintenance (I&M) sectors will increase as well. Agilent Technologies exited the I&M application segment and is significantly focused on R&D. Growth in the Asia Pacific region is the most prolific with increase in FTTH deployment, especially in China and India, and growing demand for cell backhaul and 40gb/s. China offers immense opportunities for the FOTE market. Regulations and standards to build infrastructure boost growth of broadband access and, in turn, the FOTE market.

Although the prospects for the market look upbeat, there are some challenges restraining its momentum. The global economic downturn reduced the FOTE market and is expected to have a slight impact on the growth of the market. The FOTE market is quite mature and, as such, competitive where price sensitivity is very high. Other factors contributing to the pricing of fiber optic test equipment include the complexity of measurement, distance to be covered, and regional competition. Low-cost manufacturers in China pose an immense threat to global companies. Price pressure is significant in this region as foreign vendors compete with incumbent market participants. There is a pressing need for additional government stimulus packages to help the market pick up momentum. Europe has not shown a keen interest in the FOTE space with the level of already existing stimulus packages. Countries in Europe still deal with regulatory problems for FOTE rollouts. In addition, global vendors face operating issues from western countries, and face challenges with distance and language.

Distribution plays a major role in conquering the customer base for a vendor in the fiber optic test equipment market. Indirect sales through distributors are critical for reaching out to smaller companies/customers and covering key regions. However, direct sales with a local representative are vital to cater to the needs of the large customer base. This will help build long-term relationships, discuss new projects, and provide them with the right type of test equipment at the right time. “A prominent trend in today’s market is integration of test equipment; this adds value for the customer,” says the analyst. “With operational expenditure being an important criterion for end users, the combinational testers market is expected to witness a growth upsurge.”

Market Sectors

Expert analysts thoroughly examine the following market sectors in this research:

By Geographic Region:

• North America: Canada and the United States
• Europe: Belgium, Denmark, Scandinavia, Germany, Italy, Luxembourg, the Netherlands, Spain, the United Kingdom, Hungary, Poland, and Ukraine
• Asia Pacific region: Countries on the western border of the Pacific Ocean, the Indo-Chinese peninsula, the Pacific islands, and central Asia
• Rest of World: Countries not included in the aforementioned regions, including Central and South America, the Caribbean Islands, the Middle East, and Africa

TABLE OF CONTENTS

1. Executive Summary

   1.1 Scope and Definition

   1.2 Acronyms

   1.3 Market Defined

   1.4 Key Competitors

   1.5 Key Industry Challenges and Market Drivers and Restraints

   1.6 Revenue Forecasts

   1.7 Summary of Key Findings

2. Total Fiber Optic Test Equipment (FOTE) Markets

   2.1 Key Market Data

   2.2 Key Industry Challenges

   2.3 Key Market Drivers

   2.4 Key Market Restraints

   2.5 Unit Shipment and Revenue Forecasts

   2.6 Product Analysis

   2.7 Key Trends

   2.8 Market Trends

   2.9 Product Overview

   2.10 Platform versus Stand-alone Test Equipment

   2.11 End-user Overview

   2.12 End-user Analysis

   2.13 Geographic Overview

   2.14 Competitive Structure

   2.15 Market Share Analysis

3. About Frost & Sullivan

LIST OF FIGURES

    Total FOTE Market: Impact of Top Four Industry Challenges (World), 2011-2015
    Total FOTE Market: Key Market Drivers Ranked in Order of Impact (World), 2011-2015
    Total FOTE Market: Key Market Restraints Ranked in Order of Impact (World), 2011-2015
    Total FOTE Market: Unit Shipment and Revenue Forecasts (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by Product (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by OTDR (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by OLS (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by OPM (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by OLTS (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by OSA (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by RFTS (World), 2009-2015
    Total FOTE Market: Revenue Forecasts by Other End Users (World), 2009-2015
    Total FOTE Market: Competitive Structure (World), 2010

LIST OF CHARTS

    Total FOTE Market: Key Industry Challenges (World), 2011- 2015
    Total FOTE Market: Key Market Drivers and Restraints (World), 2011- 2015
    Total FOTE Market: Revenue Forecasts (World), 2009- 2015
    Total FOTE Market: Market Engineering Measurements (World), 2010
    Total FOTE Market: Unit Shipment and Revenue Forecasts (World), 2009- 2015
    Total FOTE Market: Percent of Revenues by End Users (World), 2010
    Total FOTE Market: Percent of Revenues by Geography (World), 2010
    Total FOTE Market: Company Market Share by Revenues (World), 2010
    OTDR Hand-held Market: Company Market Share by Revenues (World), 2010
    OLS Hand-held Market: Company Market Share by Revenues (World), 2010
    OLS Full Size Market: Company Market Share by Revenues (World), 2010
    OPM Hand-held Market: Company Market Share by Revenues (World), 2010
    OPM Full Size Market: Company Market Share by Revenues (World), 2010
    OLTS Market: Company Market Share by Revenues (World), 2010
    OSA Hand-held Market: Company Market Share by Revenues (World), 2010
    OSA Full Size Market: Company Market Share by Revenues (World), 2010
    RFTS Market: Company Market Share by Revenues (World), 2010
    Other Product Segment Market: Company Market Share by Revenues for Tunable Laser (World), 2010
    Other Product Segment Market: Company Market Share by Revenues for Chromatic Dispersion Test Equipment (World), 2010
    Other Product Segment Market: Company Market Share by Revenues for by Polarization Mode Dispersion Test Equipment (World), 2010
    Other Product Segment Market: Company Market Share by Revenues for DWDM Test Equipment (World), 2010