A new analysis by Frost & Sullivan, "High Growth Testing Opportunity: Global Ethernet Test Equipment Market," estimates that the market generated $822.5 million in revenue in 2011 and is projected to reach $1.2257 billion by 2016. The 1GbE, 10GbE, and 40/100GbE test equipment segments are expected to grow at single-digit, double-digit, and triple-digit rates, respectively.
Modern data center technologies, including virtualization, converged data center networking, and cloud computing, are changing the design of traditional data centers. These new designs require higher bandwidth; 40/100GbE equipment is better suited for the core and aggregation layers.
"With processor performance constantly evolving, 40/100GbE interfaces are expected to become the default requirement," noted Prathima Bommakanti, measurement and instrumentation industry analyst at Frost & Sullivan. "This has led to a corresponding demand for 40/100 GbE test equipment."
The demand for high-density test equipment from end users is considered both a driver and a challenge for Ethernet test equipment vendors. While it offers significant growth opportunities, test instrumentation vendors are constantly challenged to keep their products aligned with the market's new functional testing requirements—such as Layer 4 wire-speed TCP/IP testing, Y.1564, 1588v2/SYNC, and IPv6—even while continuing to offer value for money.
As technology improves and the number of ports increases, end users are becoming accustomed to purchasing test solutions with greater capabilities across a range of technologies. Equipment prices have steadily declined in recent years, even as end users have been pressured to create efficiencies and reduce unnecessary expenses.
"The increasing complexity of protocols and the simultaneous development of different standards require Ethernet test equipment with greater testing capabilities," commented Bommakanti. However, as protocols become more difficult to adhere to, it will be a greater challenge for the testing team to deliver the desired results.
Market prospects will be driven by manufacturers' continued efforts to overcome the technical challenges inherent in advanced technologies and offer competitive products. The rapid evolution of end-user technologies will motivate testing instrument suppliers to focus on research and development and the introduction of products that better meet customer needs.
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