5G Device Testing Market

The 5G device testing market is projected to increase from US$ US$ 2.45 Billion in 2024 to US$ 5.18 Billion by 2031, with an anticipated compound annual growth rate (CAGR) of 7.65% during the period from 2031 to 2031.

Analyst Perspective:

The 5G device testing market presents numerous opportunities and trends, including the rising need for 5G testing equipment to validate virtualized network functions, the growing implementation of 5G testing tools for smart cities and IoT applications, and the innovation in new 5G testing equipment and solutions. These elements are likely to create new market segments and enhance competitiveness and differentiation within the market. Additionally, the market is propelled by factors such as the increasing prevalence of IoT and connected devices, the demand for high-speed and low-latency connectivity, the emergence of new use cases, and the widespread adoption of 5G technology across various sectors.

Market Overview:

5G device testing involves assessing, validating, and optimizing the performance, functionality, and compatibility of devices operating on 5G wireless networks and technologies. This testing encompasses various types of evaluations, including radio frequency (RF) tests, protocol tests, application tests, and conformance tests, which address different aspects of device behavior and network interaction. Specialized testing and measurement tools are required for 5G device testing to simulate and emulate 5G networks and scenarios, as well as to measure and analyze device parameters and performance. This testing is crucial for ensuring that devices and networks comply with necessary standards and regulatory requirements, as well as meeting end-user expectations for quality of service, reliability, and security. The end users of 5G device testing include telecom equipment manufacturers, original device manufacturers, and telecom service providers.

The growth of the 5G device testing market is also fueled by the increasing deployment of 5G networks and the adoption of software-defined testing. Moreover, the rise of a hyper-connected world is expected to boost the demand for 5G testing equipment. Countries like India and China, along with other developing nations, are witnessing a surge in connected device usage, leading to increased data traffic within networks. This necessitates the establishment of secure, reliable, and efficient networks. For example, in February 2031, Cavli, an IoT hardware solution provider, launched a significant 5G test network in India, showcasing the transformative potential of 5G technology, especially in the realms of smart cities and industries worldwide.

Strategic Insights

Market Driver:

Growing Adoption of IoT and Connected Devices Fuels Market Expansion

The proliferation of 5G applications is accelerating due to the increasing use of IoT and connected devices. As 5G becomes more prevalent across various sectors such as construction, security, entertainment, and automotive, the demand for 5G device testing is expected to rise. The emergence of new applications and business models, coupled with decreasing device costs, has facilitated the adoption of the Internet of Things (IoT) and led to a surge in connected devices. This includes connected vehicles, wearables, machinery, meters, and consumer electronics, all of which significantly contribute to market growth. The introduction of IoT and machine-to-machine connections, which are pivotal in driving the market, aligns with the ongoing Industrial Revolution 4.0, promoting advancements in cellular connectivity across diverse industries. Consequently, the expanding telecommunications user base and global R&D initiatives are anticipated to drive the demand for 5G device testing, thereby propelling the market throughout the forecast period.

Segmentation and Scope:

The "5G Device Testing Market" is categorized based on component, end user, and geography. In terms of components, the market is divided into hardware, software, and services. By end user, the market is segmented into telecom equipment manufacturers, original device manufacturers, telecom service providers, and others. Geographically, it is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Segmental Analysis:

The market is segmented by components into hardware, software, and services. The hardware segment is expected to experience significant growth during the forecast period due to the increasing complexity of 5G networks, which necessitate advanced testing equipment. Hardware is further categorized into network analyzers, signal generators, spectrum analyzers, oscilloscopes, and others. Network analyzers are essential for assessing the quality of signal and data transmission in 5G devices, helping to identify and resolve signal distortions, interference, and anomalies to ensure compliance with stringent quality standards. The signal generators segment is projected to grow at the fastest CAGR during the forecast period, driven by the rising demand for 5G devices and the need for performance and compliance testing. A spectrum analyzer evaluates the strength of an input signal across its frequency range, while an oscilloscope graphically displays electrical signals and their changes over time, allowing engineers to test and debug circuit designs by measuring electrical phenomena.

Regional Analysis:

The Europe 5G Device Testing Market holds the second-largest market share. Europe is expected to experience a surge in demand for 5G services, driven by the increasing need for faster data speeds in both commercial and residential applications. As part of the Europe 2031 strategy, efforts are being made to ensure that high-speed broadband exceeding 100 Mbps is accessible to a significant number of European countries. The strategy also aims for 50% of European households to adopt ultra-fast broadband by 2031. According to estimates from the European Commission, substantial investments of US$ 64.5 billion in 5G technology are projected to yield significant economic benefits of US$ 129.0 billion annually. This investment is likely to create numerous job opportunities, with an estimated 2.3 billion jobs expected to be generated in Europe by 2031. This heightened demand is anticipated to create a substantial market for 5G testing equipment. Additionally, Germany's 5G Device Testing Market holds the largest market share, while the UK 5G Device Testing Market is the fastest-growing market in Europe.

Key Player Analysis:

Key players in the 5G device testing market include Anritsu, Artiza Networks Inc., Emite, Exfo Inc., GL Communications Inc., Intertek Group plc, Keysight Technologies, LitePoint, MACOM Technology Solutions, National Instruments Corp, Rohde & Schwarz, Spirent Communications, Tektronix Inc., Teradyne Inc, Trex Enterprise Corporation, and Viavi Solutions Inc.

5G Device Testing Market Report Scope Recent Developments:

Market participants are actively pursuing both inorganic and organic strategies, including mergers and acquisitions. Below are some recent significant developments in the 5G device testing market:

• In July 2024, Samsung Electronics and MediaTek achieved a groundbreaking 5G uplink breakthrough using three transmit antennas. They successfully tested 5G Standalone Uplink (UL) 2CC Carrier Aggregation (CA) with C-Band UL MIMO, achieving top uplink speeds and marking a significant advancement in wireless mobile capabilities. This innovation enhances upload experiences, catering to the growing demands of live streaming, multiplayer gaming, and video conferencing.
• In June 2024, Fibocom launched the SC151-GL, the industry's first highly integrated smart module that accelerates global 5G AIoT commercialization. This module, based on the Qualcomm(R) QCM4490 Processor, supports mainstream frequency bands under 5G network architecture globally, facilitating faster and more efficient deployment of smart wireless solutions.
• In June 2024, HCLTech announced the opening of a state-of-the-art test lab in Chennai, India, aimed at empowering global telecom infrastructure OEMs by providing resources for testing and validating 5G solutions. This facility is unique in India due to its advanced capabilities, enabling testing of large cellular base stations and small form factor antennas used in various devices.