Communication Test and Measurement Market

The global Communication Test and Measurement Market is valued at USD 7.5 Billion in 2022 and is projected to reach a value of USD 15.18 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 9.2% between 2023 and 2030.

Premium Insights

Increased initiatives by the government and relevant regulatory authorities to strengthen readiness for new technologies and security that allow them to give a better experience are likely to propel CTE market expansion over the forecast period. For instance, the Department of Telecommunications (DoT) has ordered telecom equipment imported or sold in India to undergo rigorous testing and certification by local authorized bodies.5G is expected to unleash a vast IoT ecosystem, allowing networks to service billions of linked devices, making CTEs crucial for carriers to guarantee smooth and uninterrupted connectivity.

Integrating communication technologies with artificial intelligence (AI) and machine learning (ML) is a key focus, resulting in a significant growth rate in AI-driven testing solutions. This integration enables improved predictive analytics, anomaly detection, and the automation of testing processes. Interestingly, the industry's shift toward sustainability and green technologies is taking center stage, as indicated by increased demand for eco-friendly testing solutions.

The pandemic of COVID-19 has had a wide-ranging impact on the communication test and measurement sector. Initially, supply chain interruptions and postponed projects caused issues, but the increased remote work resulted in increased demand for remote testing solutions and cloud-based tools. While economic uncertainty hampered budget allocations, the epidemic expedited 5G deployments and highlighted the importance of network resilience. The shift to virtual collaboration platforms raised the demand for testing solutions, yet technological deployments took time in some industries. It continues to evolve as the market adapts to communication needs and technology in the post-pandemic period.

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Key Highlights

• North America generated more than 41.50% of revenue share in 2022
• Asia pacific is expected to grow at the quickest rate from 2023 to 2030
• Based on test solutions, wireless the segment contributed a significant revenue share in 2022
• Based on types of tests, the Network Assurance Tests segment recorded the most important market share in 2022
• Based on services, product support services led the market during 2022
• Based on Organization’s site, large enterprises dominated the market during 2022
• Based on End-user, Network Equipment Manufacturers (NEMs) accounted for significant revenue in 2022

Economic Insights

The market is expected to increase economically at an annual pace of 8-10%, owing to significant technological advancements, particularly in 5G, IoT, and cloud computing. Demands for network stability contribute to a predicted 9% annual growth, reflecting industries such as telecommunications, automobiles, and healthcare. Stringent government restrictions are predicted to push compliance testing costs to roughly $2.5 billion annually, while bandwidth optimization solutions are expected to grow by 12% in response to increasing data traffic. Companies seek 10-12% cost savings through cost-effective testing solutions, preferring choices that reduce operational downtime by 20-25%. Investments of 5-7% in skill development and training result in a 15% growth in certified professionals annually, substantially increasing the market's workforce and potential.

Top Market Trends

• 5G Rollout and Testing: The rising demand for 5G technology is a notable trend in the communication test and measurement market. 5G, distinguished by its exceptional speed and lower latency compared to earlier cellular generations, is finding applications in fields such as augmented reality, virtual reality, and driverless vehicles. The ongoing rollout of 5G networks is expected to increase the demand for communication test and measurement solutions customized to evaluate these networks. This stems from the need for enterprises to ensure regulatory compliance and optimal network performance.
• Internet of Things (IoT) Testing: Specific testing solutions are required due to the expansion of IoT devices across numerous industries. Communication tests and measurement equipment assess IoT device and network connectivity, data transmission, and overall performance.
• Increased Complexity and Bandwidth: As communication systems' complexity and bandwidth requirements have grown, test and measurement methods have evolved to meet these advanced demands. Tools for evaluating high-speed data transmission, new modulation formats, and complex signal processing have been developed for the market.
• Innovation in new technologies: New technologies such as millimeter wave (mmWave) and software-defined networking (SDN) are being developed for communication systems. This is increasing the demand for communication tests and measurement solutions that can be used to put these new technologies to the test.

Market Segmentation

The Global Communication test and Measurement market can be categorized into Test solutions, Types of tests, Services, Organization Size, End-user, and Region.

The market is segmented based on test solutions into Wireline and Wireless. Based on the types of tests, market is segmented into Network Assurance Tests, Lab & Manufacturing Tests, Field Network Tests, and Enterprise Tests. The market is divided based on services into Managed Services, Professional Services, and Product Support Services. Based on organization size, the market is segregated into Small and medium Enterprises, Large Enterprises. Based on end-user, the market is segregated into Telecommunication Service Providers, Network Equipment Manufacturers, Mobile Device Manufacturers,. Likewise, the market is segmented based on region: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on the Test Solution

Wireless hold the largest share

The wireless test solution segment, propelled by compelling factors, is anticipated to dominate the market over the forecast period. The growing need for wireless devices, such as smartphones, tablets, and wearable devices powered by wireless technologies such as Wi-Fi, Bluetooth, and LTE, supports the demand for wireless test solutions that thoroughly examine these devices' connectivity and performance. Concurrently, the widespread deployment of 5G technology, distinguished by its superior speed and low latency, increases the need for wireless test solutions to assure seamless integration and optimal operation.

Based on the types of tests

Network Assurance Tests will dominate the market during Forecast Period

Due to compelling factors, the network assurance testing sector will dominate the worldwide communication test and measurement market throughout the forecast period. Growing demand for network dependability drives the demand for network assurance tests, which are crucial for identifying and resolving network flaws, a critical problem as businesses increasingly rely on resilient networks for critical activities. Concurrently, the requirement for compliance testing, which is required to comply with regulatory rules, promotes the increase in demand for network assurance tests that competently conduct compliance assessments. Furthermore, the rising popularity of cloud computing increases the need for network assurance tests, given the intrinsic complexity of cloud networks, which makes them more prone to difficulties.

Based on Services

Product Support Services will lead the market

The product support services category is expected to take the lead in the global communication test and measurement market over the forecast period, fueled by compelling drivers. The increasing complexity of communication networks and devices is crucial, making it difficult for organizations to maintain such elaborate systems. Product support services emerge as a critical resource, providing technical help, training, and replacement parts to aid in the maintenance of communication networks and devices. Concurrently, the requirement for compliance testing, which is required to comply with government requirements, increases demand for product support services. These services are critical in supporting compliance by offering testing services and the necessary documentation, ensuring that firms adhere to regulatory standards.

Based on Organization Size

Large Enterprise accounts for significant revenue

The large enterprise segment's significant revenue contribution highlights its essential role within the communication test and measurement market, which is related to compelling aspects. Because of the complexity of their extensive communication networks and devices, large organizations have a higher demand for communication test and measurement solutions than small and medium enterprises (SMEs). Large organizations have the necessary resources to invest in cutting-edge communication test and measurement systems, ensuring access to the most recent innovations. Furthermore, their increased need for compliance testing due to adhering to more stringent government laws increases their demand for such solutions.

Based on End-user

Network Equipment Manufacturers will dominate the market

The Network Equipment Manufacturers (NEMs) segment is expected to dominate the market , fueled by compelling drivers. The current 5G deployment drives an increased need for communication test and measurement solutions since 5G technology delivers much faster speeds and lower latency, making it critical for various applications such as augmented reality, virtual reality, and autonomous vehicles. Simultaneously, the growing usage of cloud computing increases the need for these solutions, given the sophisticated nature of cloud networks, which makes them more prone to difficulties. Communication test and measurement solutions are critical for discovering and addressing faults in cloud computing networks and maintaining their smooth operation.

Based on Region

North America will lead the market

North America will lead the global communication test and measurement market throughout the forecast period. Simultaneously, the continuing 5G deployment fuels increased demand for communication test and measurement solutions, owing to 5G's outstanding characteristics of faster speeds and lower latency, making it critical for different applications such as virtual reality, autonomous vehicles, augmented reality. The growing popularity of cloud computing in North America increases the demand for communication test and measurement solutions, as cloud networks are more prone to difficulties due to their increased complexity. Communication test and measurement solutions are becoming increasingly important in finding and resolving faults in cloud computing networks, improving overall functionality.

Competitive Landscape

The Communication test and Measurement market is fragmented and competitive, with various companies, from large multinational corporations to smaller specialized firms, each offering various testing and measurement solutions for communication technologies. These well-established enterprises frequently have a market share and provide diverse products and services. They may have bought smaller enterprises or merged with competitors, resulting in some market consolidation within specialized areas.

The global Communication test and Measurement market players include Anritsu (Japan), Calnex Solutions (UK), Centina Systems (US), Cisco (US), Empirix (US), EXFO (Canada), Fortive (US), Huawei (China), Keysight Technologies (US), Kyrio (US), Luna Innovations (US), National Instruments (US), NETSCOUT (US), octoScope (US), QualiTest (US), Rode & Schwarz (Germany), SysMech (Kent), Spirent (US) among others.

Recent Market Developments

• Keysight Technologies works with industry leaders to diversify its business portfolio and provide various services to end-user applications. The company offers wireless communication services to the aerospace, defense, and military industries.
• Rohde & Schwarz offers wireless communications to their customers. The organization provides high-quality, smooth networking to propel the market to new heights.

Segmentation of the Global Communication Test and Measurement Market