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The ethernet test equipment market size is estimated to grow at a CAGR of 5.41% between 2022 and 2027. The market size is forecast to increase by USD 594.84 million. The growth of the market depends on several factors, including rising demand for high-speed ethernet, data centers to fuel market growth, and replacement of fieldbus with industrial ethernet. The global ethernet test equipment market can be characterized as the area of the larger telecommunication and networking sector that deals with the creation, production, and marketing of tools particularly made for ethernet network testing and monitoring. The ability to transmit data over both LANs and WANs is made possible by the widely used networking technology known as Ethernet. Network service providers, businesses, and other organizations utilize ethernet test equipment to guarantee the performance, dependability, and security of their ethernet networks. These tools include, among other things, protocol analyzers, network packet brokers, traffic generators, network taps, and tools for monitoring network performance. The global ethernet test equipment market, which includes both hardware- and software-based solutions, is being driven by the rise in network complexity, the need for high-speed and reliable data transmission, and the expanding use of ethernet in a variety of sectors, including telecommunications, data centers, manufacturing, and healthcare.
This ethernet test equipment market report extensively covers market segmentation by end-user (automotive, telecommunication, manufacturing, and others), product (10 GbE, 1 GbE, and 40 GbE and above), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The replacement of Fieldbus with industrial ethernet is notably driving market growth. For industrial ethernet across geographies, the ongoing replacement of Fieldbus with industrial ethernet as the primary networking technology in the industrial automation industry is boosting the demand. Industrial Ethernet is usually cost-effective and provides higher bandwidth and ease of scalability to its end-users. Fieldbus is designed to perform particular tasks within their respective local segments and in isolation from higher-level networks in comparison to industrial ethernet. Ethernet is more flexible than its Fieldbus as it can support many protocols simultaneously. Nevertheless, owing to factors such as better flexibility, remote access, and diagnostics; faster networking; and the ability to integrate the factory floor with the enterprise environment, the popularity of ethernet has been growing more rapidly than that of Fieldbus o
In addition, the rising demand for cloud-based services is revolutionizing the data centre infrastructure, therefore creating a lucrative demand for high bandwidth cables. The demand for industrial ethernet has been rising, which will add to the intricacy of the industrial ethernet network. This creates an opportunity for ethernet test equipment vendors and may boost market growth during the forecast period.
Continuous technological developments are an emerging trend shaping the market growth. The rising requirement for high-speed data has created the need for fast and low-cost data transmission. With distributed multiple-input and multiple-output (MIMO), the 5G network has multi-point connectivity and it can deliver several MIMO streams, where a single device is linked to numerous sites at the same time, therefore reaching a downlink throughput of 100%. For 5G technology testing and development, network operators are cooperating with testing companies. Ethernet-based test equipment is increasingly equipped with automation features, as well as remote monitoring capabilities, allowing for centralized control and management of test equipment over distributed networks to meet the requirements of distributed networks and large-scale networks.
Moreover, test equipment manufacturers are incorporating various testing capabilities in a single device to provide an end-to-end testing solution as cloud computing and software-defined networking (SDN) are becoming increasingly popular. These are not restricted to traffic generation, latency measurement, error detection, and performance monitoring. Therefore, ongoing technological developments will fuel the growth of the global ethernet test equipment market during the forecast period.
Intense competition is a major challenge hindering market growth. Due to the presence of multiple companies that offer differentiated products and services, the global ethernet test equipment market is highly competitive. The market has not only well-established companies such as EXFO, Viavi Solutions, Spirent Communications, Fortive, Anritsu, Tektronix, and Keysight Technologies but also several small-scale players. In APAC, regional players such as those offer low-cost products to cater to the local end-user's needs. This region has a large base of price-sensitive consumers, which encourages local companies to provide low-cost equipment. Nevertheless, due to the low budget for manufacturing such products, they compromise on product quality.
In addition, cost-driven end-users choose low-quality products offered by local companies. Such a situation forces international companies to lower the prices of their products, resulting in price wars. This impacts the profit margins of the companies in the market and thus hinders the growth of the market. Therefore, the intense competition in the ethernet test equipment market will hinder the growth of the ethernet test equipment market during the forecast period.
The market share growth by the automotive segment will be significant during the forecast period. In the global ethernet test equipment market, the use of ethernet test equipment in the automobile sector is referred to as the automotive segment. Ethernet test equipment is employed to evaluate and confirm the effectiveness of ethernet networks in automobiles. The automotive industry is growing in importance as a market for ethernet test equipment suppliers as ethernet technology is being used in automobiles.
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The automotive segment was the largest and was valued at USD 531.67 million in 2017. Some of the major applications of ethernet test equipment in the automotive segment include performance testing, compliance testing, fault diagnosis and troubleshooting and security testing. The rising demand for advanced connectivity and communication characteristics in automobiles is what drives the automotive segment of the global market for ethernet test equipment. The requirement for ethernet test equipment in the automotive industry is expected to advance as ethernet technology is embraced more widely for in-vehicle networking and communication, which, in turn, will augment the growth rate of the global Ethernet test equipment market during the forecast period.
10 GbE networks are used for transmitting data at a rate of 10 billion bits per second. Because of its cost-effective and less complex ethernet solutions to manage data among networks, these networks are mainly used in local area networks (LAN) and metropolitan area networks (MAN). Due to their ability to support cloud computing, convergence, and virtualization in the data centre, businesses are moving from Frame Relay and time-division multiplexing (TDM) services to IP/Ethernet services. The upsurge in the use of high-speed Internet and the growth of the 4th Generation (4G) mobile applications have also driven the adoption of 10 GbE, which has thus expanded the demand for 10 GbE test equipment. Thus, the 10 GbE ethernet cable will drive the demand for the global ethernet test equipment market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The highest revenue contributor in the global ethernet test equipment market is North America. The prevalence of demand for ethernet test equipment in the region would arise from the US due to the widespread adoption of the Internet in the region. In North America, cloud computing and big data are quite popular among private as well as government organizations.
In addition, some of the top companies, such as Amazon Web Services, Microsoft, Google, IBM, Salesforce, AT and T, and Oracle, are located in the US. The rising use of cloud computing and big data has driven the demand for ethernet test equipment. Government initiatives to secure cloud computing have also aided the adoption of cloud computing and, in turn, the ethernet test equipment. Also, edge computing is fast gaining traction in the region, which will positively influence the ethernet test equipment. Such factors are expected to drive market growth in the region during the forecast period.
The COVID-19 outbreak had a negative impact on the regional market. However, the regional government's initiation of massive vaccination drivers helped in the reduction of COVID-19 cases. This led to the resumption of manufacturing facilities and supply chain operations. Furthermore, by the increased reliance on remote work during the pandemic, the need for strong and dependable networks has been fueled. Due to businesses investing in technologies that may help them ensure the performance and dependability of their networks, there has been a significant increase in the demand for ethernet testing equipment, which, in turn, will increase the demand for the regional ethernet test equipment market during the forecast period.
The Ethernet Test Equipment Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Ethernet Test Equipment Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agilent Technologies Inc. - The company offers ethernet test equipment such as Agilent N2X, providing comprehensive testing capabilities for network equipment.
Anritsu Corp. - The company offers ethernet test equipment such as the Anritsu Network Master series, providing high-performance ethernet test solutions for network testing and monitoring.
EXFO Inc. - The company offers ethernet test equipment such as EXFO FTB series testers, designed for ethernet and transport network testing in various applications.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The ethernet test equipment market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Ethernet Test Equipment Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.41% |
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Market growth 2023-2027 |
USD 594.84 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.21 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agilent Technologies Inc., Anritsu Corp., EXFO Inc., Silvertel, Keysight Technologies Inc., Spirent Communications plc, Teledyne Technologies Inc., Xena Networks ApS, Yokogawa Electric Corp., Accedian Networks Inc., GAO Group Inc., GL Communications Inc., IDEAL INDUSTRIES Inc., Marvell Technology Inc., NetScout Systems Inc., Sifos Technologies Inc., TE Connectivity Ltd., VeEX Inc., Viavi Solutions Inc., and Beijing Xinertel Technology Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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