5G Testing Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment Type (Oscilloscope, Signal Generator, Spectrum Analyzer, Network Analyzer, and Others), By Application (Lab Testing, Performance Testing, and Wireless and RF Testing), By End-User (Telecom Equipment Manufacturers, IDMs & ODMs, and Others), and Regional Forecast, 2023 – 2030

The global 5G testing equipment market size was valued at USD 1.69 billion in 2022. The market is projected to grow from USD 1.84 billion in 2023 to USD 3.51 billion by 2030, exhibiting a CAGR of 9.7% during the forecast period.

5G testing equipment is used to measure and test the 5G device infrastructure, such as electric signals or spectrums, bandwidth, device efficiency, network, and other related parameters. Due to the increased use of IoT and connected devices, the demand for 5G testing equipment continues to increase at a steady pace. Moreover, the use of 5G test equipment for the deployment of 5G technologies is convenient due to the increased availability of large data centers. In 2019, the commercialization of 5G technologies began, and as a result, it started creating an opportunity to test 5G equipment.

There is an increasing demand for 5G test equipment due to the deployment of 5G in individual sectors such as automobiles, entertainment, healthcare, government, and security. Additionally, the 5G test equipment market growth is expected to be driven by ongoing R&D of 5G infrastructure to make it more user-oriented and compliant with industry standards. For instance,

• In June 2023, HCLTech established a state-of-the-art OEM testing laboratory in Chennai, India, to enable global telecom infrastructure OEMs to check and verify the applicability of 5G solutions.

COVID-19 IMPACT

Rising Number of 5G Subscriptions for Network Reliability during COVID-19 Pandemic Fueled Market

The COVID-19 pandemic caused a rise in network traffic due to increased demand for reliable network connectivity. Businesses recognized the limitations and challenges they faced during pandemic. In addition, the work from home norms led to an expansion of network coverage in the outer parts of the cities. Network operators accelerated the deployment of 5G to take advantage of the increased demand for network capacity.

While the primary focus of 4G was limited to telecommunications, 5G was being adapted as an advanced version to address a wide range of industrial use cases. Therefore, effective and precise 5G testing gained importance. According to Ericsson in 2020, the global market for 5G underwent significant growth, with subscriptions expected to reach 1.5 billion by the end of 2023. Due to increasing number of 5G subscriptions during the pandemic, there has been an escalating demand for 5G testing equipment.

LATEST TRENDS

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Software-defined Testing for 5G Equipment is a Major Trend in the Market

The need for extremely reliable high connectivity with low latency is increased by the capability to provide continuous connectivity between machines in the manufacturing process. The necessity of quick communication and faster response in emergencies is making the deployment of 5G networks more widespread across various sectors. Additionally, 5G is contributing to numerous smart city purposes, such as, enabling the IoT, bridging the digital divide, and providing facilities and services to citizens.

With 5G equipment containing highly complex Radio Frequency (RF) designs, the testing and measurement sector is becoming more inclined to create flexible and effective test sets through a software defined approach. Test programs that create 5G challenges are also helped by the software defined approach used in 5G testing. For instance, prototyping of Massive MIMO, mmWave, Channel Sounding, and Waveform Development using reprogrammable instrument tools is carried out for 5G test equipment. These trends contribute to the market’s growth with increased costumer spending on smartphones and digitalization.

DRIVING FACTORS

Rising Usage of High-Speed Internet Connectivity by 5G in IoT Devices to Aid Market Growth

The demand for faster mobile communications has grown steadily to ensure that connected devices are perfectly secure. To support and facilitate communication between large scale Internet of Things (IoT) devices, high speed internet connectivity is an important means of access. A wide adoption of advanced multimedia applications that contribute to an increase in 5G traffic resulted from combining device capabilities with higher bandwidth, faster, and smarter networks. According to a recent Thales Group webinar, by the end of 2023, around 438 million devices will be connected using 5G, thereby creating demand for 5G testing equipment.

To promote high speed data transfer used by connected devices, there is a demand to test the capabilities and performance of 5G testing equipment. Additionally, the demand is expected to increase as a result of connectivity needs in mobile phones, wearables, connected cars, and other consumer electronic devices.

RESTRAINING FACTORS

Technological Complexities and Cost of Testing to Impede Market Growth

The infrastructure for the 5G network and a pathway to performance gains in an evolving digital world are enabled by a combination of techniques such as millimeter wave usage, multimode integration, and beamforming. The overall 5G testing process is being faced with additional challenges caused by the added complexity of these techniques, making it a major constraint for the 5G testing equipment market growth.

Moreover, controlling testing costs could play a key role in the success of 5G. Organizations need higher frequency penetration rates due to their complex infrastructure; however, the 5G network limits the penetration rate through physical barriers.

SEGMENTATION

By Equipment Type Analysis

Rise in Network Traffic and Targeted Marketing to Lead to Highest CAGR of Network Analyzer Segment

Based on equipment type, the market is segmented into oscilloscope, signal generator, spectrum analyzer, network analyzer, and others. With the introduction of 5G technology, low business risk factors, and an increase in network traffic, the network analyzer segment is expected to have the highest CAGR over the forecast period. A network analyzer helps prevent potential infrastructure delays and problems with deployment. The growth of the network analyzer segment is anticipated to be fueled by targeted marketing, increased traffic on the 5G network, and Quality of Experience (QoE) maintenance.

The spectrum analyzers segment dominated the market share in 2022 due to its rapid and easy analysis of the signal as well as its ability to pick up and analyze phase information for the signal.

By Application Analysis

Increase in Usage of Wireless Spectrum for Wireless and RF Testing to Aid Market Expansion

Based on application, the market is segmented into lab testing, performance testing, and wireless and RF testing. Wireless and RF testing segment is expected to significantly grow at a higher CAGR during the forecast period, owing to increase in wireless spectrum usage among users.

The test solutions available for wireless development and deployment workflow are created to take into account many testing challenges. By using the finite RF spectrum more effectively, enhanced wireless testing promises incredible data speed. Also, with the development of advanced integrated 5G devices with wireless features, the demand for 5G testing equipment is anticipated to rise during the forecast period.

By End-User Analysis

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Rising Demand for Integrated Devices for IoT Applications to Grow IDMs & ODMs Segment Share

Based on end-user, the market is categorized into telecom equipment manufacturers, IDMs & ODMs, and others, which are adopting 5G test equipment to enhance their business activities. The IDMs & ODMs segment is aimed to register the highest growth rate during the forecast period. The growth is attributed to the demand for integrated devices for unified IoT applications such as smart home energy management. IDMs & ODMs are developing innovative device technologies that improve the capacity for handling a much larger number of smart devices through greater data volumes, particularly in localized markets.

The telecom equipment manufacturers segment dominated the market share in 2022. This is mainly due to the deployment of 5G networks and, more generally, longer term evolutions such as LTE on a global scale.

REGIONAL INSIGHTS

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Regionally, the market is fragmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

As per the analysis, North America held a major 5G testing equipment market share in 2022 due to increase in deployment of 5G infrastructure and the presence of major network service providers in the region. Telecom service providers have already implemented 5G testing equipment at an early stage. Technological advancements in 5G in the region are expected to help gain traction in this market. For instance,

• In October 2022, EXFO received funding of USD 15.9 million from the federal government, to accelerate 5G technology development and job creation in Canada.

Due to the growing demand for higher data transfer speeds for residential and commercial purposes, as well as a high need for 5G testing equipment, Europe is also expected to experience strong demand for 5G testing services.

Asia Pacific is estimated to grow at a faster pace, with the trend anticipated to continue over the forecast period. Increased manufacturing of 5G devices and their adoption by major economies, such as India, China, and Japan, have led to regional growth. These evolving economies have made substantial contributions in aiding the region's adoption of the 5G testing equipment platform. For instance,

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• October 2022 - HFCL Limited, a telecommunications equipment manufacturer and technology provider, announced the launch of 5G Lab, a service that accelerates the deployment of 5G solutions and services.

KEY INDUSTRY PLAYERS

Rising Product Demand and Growing Focus on Partnerships and Acquisitions to Increase Reach

The 5G testing equipment industry is driven by market player’s focus to transition consumers to 5G connection and support users by enabling more devices to run on a network. Additionally, market players focus on acquisition of small and local firms to expand their business presence. Moreover, acquisitions, mergers, partnerships, and collaborations with increasing investments in 5G technologies to increase the product demand is set to further drive market growth.

List of Key Companies Profiled:

• Keysight Technologies (U.S.)


• Anritsu (Japan)


• VIAVI Solutions Inc. (U.S.)


• NATIONAL INSTRUMENTS CORP. (U.S.)


• TEKTRONIX, INC. (U.S.)


• Artiza Networks, Inc. (Japan)


• Mobileum (U.S.)


• Teradyne Inc. (U.S.)


• Spirent Communications (U.K.)


• EXFO Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: Tektronix, Inc., a provider of test and measurement solutions, launched the Double Pulse Test solution, WBGDPT. The Tektronix WBGPTD solution is capable of providing automated, repeatable, and accurate measurements of wide bandgap devices by supporting important advancements in solar energy, electric vehicles, and industrial controls.


• March 2023: Anritsu Corporation and Artiza Networks partnered for an Open RAN test solution. Utilizing specifications for network points, the Open RAN concept enables cost reduction, multi-vendor sourcing, and the deployment of Artificial Intelligence (AI) applications as a permanent driver of business opportunities. Versatile organization administrators and gadget merchants are carrying forward with Open RAN testing and execution driven by industry gatherings, making the O-RAN Alliance.


• February 2023: Keysight Technologies launched a new solution centered on its 5G Network Emulation Platform, an efficient network emulator created for functional testing, protocol, radio frequency testing, and all cellular IoT technologies, including RedCap.


• February 2023: AMD announced that it supports its 5G partner network, which includes applications from the core to RAN, to provide new test capabilities and launch new 5G products. By combining its AMD and Xilinx product lines with the establishment of a new laboratory for testing telecommunications service provider solutions in partnership with VIAVI, the wireless network partners' ecosystem has more than doubled over the past year.


• May 2022: Spirent Communications, a provider of next generation device and network testing and assurance solutions, launched the latest security automation suite, as part of the 5G Core Automation Platform for Spirent Landslide. It brings together the company's proven automation, test methodology, 5G, and security expertise in a single prebuilt solution that service providers can use to connect to their automation pipelines.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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