GbE Ethernet Test Equipment Market Expands

by CXOtoday Staff    Dec 27, 2005

Global consulting company Frost & Sullivan has come out with a new analysis stating that the increase in the 10 Gigabit Ethernet test equipment market revenue is due to the early stages of development of the market.

The study predicts that by 2011 the Gigabit Ethernet (GbE) and 10 Gigabit Ethernet (GbE) test equipment markets will reach up to $626.9 million. The total market revenue stood at $233.3 million in 2004 after the deployment started in the segment.

Frost & Sullivan program manager Jessy Cavazos is of the opinion that slashing of prices by network equipment manufacturers will eventually lead to lowering of prices for both GbE and 10GbE test equipments in future.

However Cavazos says, “The good news is that the decline in prices is balanced out by the growing volume of the demand. This is how network equipment manufacturers are able to pressure test vendors to lower prices.”

Competition between vendors and entry of newer players will also play a major role in price reduction. The study says that the actual prices may in fact be reduced by as much as 50% to 60% depending on the client.

The research also indicates the emergence of smaller Asian companies as competitors in the market and advised the global leaders in the test equipment space to be wary of such companies, as they tend to penetrate the market by offering lower-priced test equipment that has a reduced feature set.