PUBLISHER: KBV Research | PRODUCT CODE: 1483510
PUBLISHER: KBV Research | PRODUCT CODE: 1483510
The Global Communication Test and Measurement Market size is expected to reach $17.6 billion by 2031, rising at a market growth of 9.5% CAGR during the forecast period.
North America is a hub for technological innovation, particularly in the telecommunications and information technology sectors. Canadian manufacturers are investing in smart manufacturing initiatives and digital transformation projects to digitize production processes, monitor equipment performance, and optimize supply chain operations. Consequently, the North America region would generate approximately 34% revenue share of the market in 2031.
The major strategies followed by the market participants are Mergers & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December 2023, Luna Innovations, Incorporated completed the acquisition of Silixa Ltd., a distributor of fiber optic sensing solutions. With this acquisition, Luna strengthened its standing in the fiber optic sensing market. And in October 2021, Keysight Technologies, Inc. took over SCALABLE Network Technologies, a provider of communications network simulation and solutions for design, testing, and analysis. Through this acquisition, Keysight and SCALABLE will empower customers to model, prototype, and evaluate multi-domain networks and applications using software simulations, reducing risks during development and enhancing the time to market for their products.
Based on the Analysis presented in the KBV Cardinal matrix; Huawei Technologies Co., Ltd. and Cisco Systems, Inc. are the forerunners in the Communication Test and Measurement Market. Companies such as Keysight Technologies, Inc., Fortive Corporation and Yokogawa Electric Corporation are some of the key innovators in Communication Test and Measurement Market. In January 2024, Fortive Corporation took over EA Elektro-Automatik (EA) Holding GmbH, a leading supplier in the sector of power electronics for R&D and industrial applications. Through this acquisition, Fortive enhanced its standing in the electronic test and measurement solutions segment within its precision technologies segment.
Market Growth Factors
Cybersecurity testing services help organizations proactively identify and mitigate security risks before malicious actors can exploit them. Organizations can identify weaknesses in their network infrastructure, applications, and security controls by conducting comprehensive security assessments, penetration testing, vulnerability scanning, and threat modelling. Therefore, the market is expanding significantly due to the rising cybersecurity testing services.
Additionally, Industry 4.0 and smart manufacturing involve the integration of automation, data exchange, and advanced manufacturing technologies. This increased connectivity and automation require reliable and high-performance communication networks. Communication test and measurement solutions are needed to ensure these networks' performance, reliability, and security. Thus, because of the adoption of Industry 4.0 and smart manufacturing, the market are anticipated to increase significantly.
Market Restraining Factors
The high upfront cost of testing equipment can make it inaccessible for smaller organizations, startups, and companies operating on tight budgets. This limits their ability to invest in comprehensive testing capabilities, potentially hindering their competitiveness and ability to deliver high-quality products and services. High testing equipment costs can deter investment in research and development (R&D) initiatives to develop new testing methodologies, technologies, and solutions. Thus, high cost of testing equipment can slow down the growth of the market.
Test Solution Outlook
Based on test solution, the market is classified into wireline and wireless. The wireless segment recorded a 32.7% revenue share in the market in 2023. Wireless test solutions provide real-world simulation and emulation capabilities to replicate diverse wireless environments, scenarios, and conditions in controlled testing environments. By simulating various network conditions, mobility patterns, interference scenarios, and propagation characteristics, these solutions enable organizations to validate the performance and resilience of wireless systems under different real-world scenarios.
Offering Outlook
By offering, the market is categorized into hardware, software, and services. In 2023, the hardware segment held 55.4% revenue share in the market. Hardware components such as test instruments, analyzers, probes, and meters form the backbone of communication test and measurement infrastructure. These devices are essential for conducting a wide range of tests and measurements, including signal analysis, spectrum analysis, power measurements, and modulation analysis, across various communication technologies and protocols.
Type of Test Outlook
On the basis of type of test, the market is divided into enterprise test, field network test, lab & manufacturing test, and network assurance test. The enterprise test segment covered a 18.5% revenue share in the market in 2023. Enterprise test solutions offer end-to-end testing capabilities that cater to the diverse communication infrastructure deployed within enterprises. These solutions encompass a wide range of testing functionalities, including network performance testing, security testing, protocol conformance testing, interoperability testing, and user experience testing, ensuring comprehensive coverage of enterprise communication systems.
End-user Outlook
By end-user, the market is fragmented into telecommunication service provider, network equipment manufacturer, mobile device manufacturer, and others. In 2023, the telecommunication service provider segment held 46.2% revenue share in the market. Telecommunication providers prioritize quality assurance to deliver reliable, high-performance customer communication services. They invest in communication test and measurement solutions to validate network performance, assess service quality, and ensure compliance with service level agreements (SLAs), driving demand for testing tools and technologies that support their quality assurance initiatives.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region acquired a 28.53% revenue share in the market. The Asia Pacific region is experiencing rapid growth in telecommunications infrastructure, driven by increasing internet penetration, rising smartphone adoption, and growing demand for digital services. The Asia Pacific region is home to a large manufacturing base and is experiencing increasing adoption of industry automation technologies such as robotics, artificial intelligence, and industrial IoT.
The market is competitive, with established players like Keysight Technologies, Cisco Systems, Inc., Anritsu, and Rohde & Schwarz. They offer a variety of equipment for testing wireless, optical, and wired communications. Competition centers around innovation, performance, pricing, and customer support. Smaller players focusing on specific segments also contribute to the competition. Hence the competitive rivalry is relatively high.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Market Report Segmentation
By Test Solution
By Offering
By Type of Test
By End-user
By Geography