5G Testing Equipment Market Size, Share & Trends Analysis Report By Equipment (Signal & Spectrum Analyzers, Network Analyzers), By Revenue Source, By End User, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global 5G testing equipment market size was valued at USD 1.67 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2020 to 2027. Network connectivity remains a rapidly evolving space from 2G to 3G, 4G, and currently 5G. Several industry verticals are aggressively dedicated to technological morphosis to enhance their operational efficiency and productivity in order to sustain in an intensely competitive environment. Wireless technology holds strong potential in creating revolutionary changes across verticals through economic reductions and productivity enhancements. Complete deployment of a 5G network by any carrier is likely to be a long-term process. However, there remains significant ground to be covered in terms of developing the specified network architecture.

Several sectors such as chipset manufacturers, device manufacturers, and network operators require an array of testing solutions to test and validate the design and power needs of the 5G components. If the communication testing industry can address the end-user requirements appropriately, there remains a sizeable commercial opportunity to capitalize on.

Applications of 5G continue to expand at a steady pace on account of increasing usage of IoT and connected devices. Besides, the surging availability of large data centers makes it convenient to use 5G testing equipment for the deployment of 5G technology. The commercialization of 5G technology began most recently in 2019, thereby creating an opportunity hotspot for 5G testing equipment in the upcoming years. Market penetration of 5G in specific sectors such as automotive, entertainment, medical, construction, security is increasingly creating demand for 5G testing equipment. Continuously evolving research & development of 5G equipment to make it more application-oriented and industry-compliant is anticipated to drive the market for 5G testing equipment over the forecast period.

Hyper-connectivity of the world is one of the prime factors fueling the demand for testing equipment. Increasing utilization of connected devices in emerging economies, such as China and India, continues to create data traffic in a network, thereby enforcing the need for establishing a more efficient and secure network. Escalating demand for data traffic control is anticipated to propel the 5G technology, which will consequently lead to exponential growth in the market.

Furthermore, connectivity needs in smartphones, wearable devices, connected cars, smart home devices, and other consumer electronic devices are likely to augment the market demand. High speed of 5G and availability of wireless and wired technology are potential factors for easing the connectivity process. On the contrary, the associated cost and technical issues due to multiple carrier involvement are considered the key restraints of the market.

Equipment Insights

Based on equipment, the market is divided into oscilloscopes, signal and spectrum analyzers, vector signal generators, network analyzers, and others. In terms of revenue, signal and spectrum analyzers dominated the market with a share of 24.8% in 2019. This is attributed to its fast and simple signal analysis, along with its ability to capture and analyze phase-related information of the signal. The oscilloscopes segment held a significant market share in 2019 based on increasing intelligence of electronic devices, an increase in demand for signal storage and self-monitored facilities, user interface improvements, increasing bandwidth, and modular instrumentation.

The network analyzers segment is expected to witness the fastest growth over the forecast period owing to the emergence of 5G technologies, low business risk factors, and increase in network traffic. Deployment of network analyzer can help to prevent potential infrastructure delays and deployment issues. Telecom network analyzer provides large-scaled analytical models and technology solutions to analyze the entire system scenario through network analytics for the communication service providers (CSP). Increased 5G network traffic, targeted marketing, and quality of experience (QoE) maintenance are expected to fuel the growth of the segment.

Revenue Source Insights

In terms of revenue, rental dominated the market with a share of 55.9% in 2019. Considering the fact that the 5G market came into light only after 2019, most end users have turned towards rental sources. It has been observed that leasing out of 5G test equipment is one of the key strategies adopted by leading vendors in the communication testing space.

However, most end users intend to build their equipment portfolios, thereby generating new revenue sources. Multiple factors such as design, power requirements, and price need to be considered before the complete deployment of 5G testing equipment. Although this is a time-consuming process, new revenue sources are expected to demonstrate a steady growth momentum through the forecast period.

End-user Insights

In terms of revenue, telecom equipment manufacturers dominated the market with a share of 34.9% in 2019. This is attributed to increase in the deployment of 5G network and long-term evolution, i.e. LTE network, across the globe. Telecommunications equipment manufacturers use test equipment access multiplexers, transmission lines, base transceiver stations, among others. Test equipment facilitates instrument management, repair technology, maintenance, calibration, and deployment of telecom networks. It also ensures that the products adhere to the international standards. Manufacturers ensure that broadband service providers deliver a high-quality experience to their users, along with effective service management via technologies, such as Voice over Internet Protocol (VoIP) and Internet Protocol TV (IPTV).

The telecom service providers segment is expected to witness the fastest growth over the forecast period owing to demand for high-speed data connectivity for unified Internet of things (IoT) applications, such as smart home energy management. Telecom Service Providers (TSP) or Communications Service Providers (CSP) includes both public as well as private companies in industries, such as wire and wireless telecom, cable, Internet Service Providers, satellite, and managed service businesses. Various industry verticals such as manufacturing, telecom, and healthcare are focusing on technological transformations in order to improve overall operational efficiency and productivity and sustain in a highly competitive environment.

Regional Insights

North America dominated the market with a share of 41.9% in 2019. This is attributed to increasing deployment of 5G network infrastructure and presence of significant network service provider companies, such as AT&T, who have adopted 5G testing equipment at an early stage. The companies in the region are investing in R&D to integrate 5G technology in smartphones and healthcare applications in order to enhance network performance. Europe is also expected to witness high demand for 5G services based on growing demand for higher data speeds for commercial and residential applications, and hence high demand for 5G testing equipment as well.

Asia Pacific is expected to witness significant growth over the forecast period. Major market players in China, Japan, and South Korea are expected to focus on deploying 5G network infrastructure for the media and entertainment, transportation and logistics, healthcare, manufacturing, among other industry verticals. These investments are estimated to propel the growth of the Asia Pacific market over the forecast period. Moreover, rapidly escalating demand for smartphones, along with higher internet speeds, has resulted in vigorous manufacturing of 5G-enabled smartphones across the region. This overall scenario is propelling the demand for test equipment as well.

Key Companies & Market Share Insights

The manufacturers in the 5G testing equipment industry are intensely focusing on improvising the technology to meet the demand of the increasing bandwidth applications and high-speed internet requirements arising from the bandwidth-intensive applications. For instance, in May 2020, Rohde & Schwarz collaborated with Digita, a Helsinki-based telecommunication company, to complete the Digital Video Broadcasting of Second Generation Terrestrial (DVB-T2) network upgrade across Finland. Rohde & Schwarz has supplied around 80 ultra-high frequency (UHF) HD transmitters. This collaboration helped Digita to enhance its power efficiency and redundancy across the new network. Both these companies have also initiated a 5G broadcast trial in the Greater Helsinki region. Major competitors in the global 5G testing equipment market include:

• MACOM

• Rohde & Schwarz

• VIAVI Solutions Inc.

• Keysight Technologies

• Anritsu

• LitePoint

5G Testing Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2027. For the purpose of this study, Grand View Research has segmented the global 5G testing equipment market report based on equipment, revenue source, end user, and region:

• Equipment Outlook (Revenue, USD Million, 2019 - 2027)

  • Oscilloscopes

  • Signal and Spectrum Analyzers

  • Vector Signal Generators

  • Network Analyzers

  • Others

• Revenue Source Outlook (Revenue, USD Million, 2019 - 2027)

  • New

  • Rental

• End-user Outlook (Revenue, USD Million, 2019 - 2027)

  • Telecom Equipment Manufacturers

  • Original Device Manufacturers (ODMs)

  • Telecom Service Providers

  • Others

• Regional Outlook (Revenue, USD Million, 2019 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • AsiaPacific

    • China

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa