July 17, 2008

Trend Toward High-Speed Bandwidth Spurs Growth of the SONET/SDH Test Equipment Market

With the growing use of IP television (IPTV) and VoIP, there is an urgent need for greater, 40-gigabit bandwidth and higher speeds. This, in turn, expects to boost the market for scalable, enhanced synchronous optical networking/synchronous digital hierarchy (SONET/SDH) test equipment.

New analysis from Frost & Sullivan (http://www.testandmeasurement.frost.com), World SONET/SDH, Next-generation SONET, OTN, and Jitter/Wander Test Equipment Markets, finds that market earned revenues of over $156.4 million in 2007 and estimates this to reach $199.8 million in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the world SONET/SDH, next-generation SONET, OTN, and jitter/wander test equipment market, then send an e-mail to David Escalante, Corporate Communications, at [email protected] Please include your full name, company name, title, telephone number, company e-mail address, company website, city, state and country, and upon receipt of the above information, an overview will be sent to you by e-mail.

The new 40-gigabit Ethernet, jitter testing, and integrated testing solutions all offer great opportunities to vendors within this market. However, at present, only SDH and optical transport network (OTN) can offer 40-gigabit bandwidth, which is in demand for router-to-router connections.

The growth in Ethernet remains another factor that drives bandwidth expansion in SONET/SDH, whether it is traditional, next generation, or OTN, the Ethernet will likely be delivered over SONET. SONET is also retained because of its quality, reliability, and performance, which has yet to be replicated even with the advances in Ethernet technology. Telecom operators have invested substantially in SONET infrastructure and are unlikely to shift to Ethernet in the near future.

The greater bandwidth also poses a technological challenge to the industry, as the industry has to develop scalable equipment to meet the new needs. The adoption of next-generation SONET/SDH expects to generate considerable demand for scalable test equipment.

"One of the most difficult challenges for test and measurement vendors in the SONET/SDH test equipment market is to provide an integrated solution to conduct the various tests required during the installation and maintenance of a network," says Frost & Sullivan Program Leader Olga Yashkova. "This integrated test solution needs to offer a high price-to-performance ratio to end users."

Despite the challenges, potential exists for SONET/SDH test equipment. One growth area arises from the increased deployment of multi-service transport products in metro and core networks.

"Major service providers are continuing massive traditional SONET/SDH deployments due to the proven reliability of the technology and large network equipment manufacturers (NEMs) are in the process of establishing, or have established, their bases in the Eastern Europe and Asia Pacific regions," says Yashkova. "These regions are expected to present increasing demand for SONET/SDH test equipment."

World SONET/SDH, Next-generation SONET, OTN, and Jitter/Wander Test Equipment Markets is part of the Test & Measurement Growth Partnership Service program, which also includes research in the following markets: World Triple Play and Next Generation Services Test and Monitoring Equipment Market, World DPI Test Equipment Market, World SONET/SDH Related Test equipment Market, and many more. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership(TM) empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com. World SONET/SDH, Next-generation SONET, OTN, and Jitter/Wander Test Equipment Markets