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Demand for Complex IoT Support Creates Vast Market for Novel T&M Instruments

The future trend is diving more into a software- defined architecture and structure based system rather than a purely hardware system, finds Frost & Sullivan’s Measurement & Instrumentation Team.

The proliferation of wireless technologies across industries and the need to support complex Internet of Things (IoT) has created a vast market for novel test and measurement (T&M) instruments. Managing highly connected IoT devices can prove time consuming and expensive without an appropriate test plan; therefore, T&M vendors must present a universal software radio peripheral (USRP) price position for wireless tests. There are rich opportunities in the IoT wireless technologies market for vendors that can offer systems with greater modularity, customization and software design to aid cost-effective upgrades.

New analysis from Frost & Sullivan, New Competition for the Global Test and Measurement Market in IoT Wireless Technologies, finds that with 23 billion devices expected to be connected by 2020 and evolving technologies and standards, T&M products and services in the IoT wireless market are expected to experience sustained growth. The total market was worth $168.6 million in revenues in 2015 and is anticipated to reach $291.9 million in 2020 at a compound annual growth rate (CAGR) of 8.7 percent.

Vendors will look to target companies supporting a wide range of radio test functions, operating on an open architecture and deploying a modular system such as PCI eXtension for Instrumentation (PXI). They also need to be aware of the opportunity to integrate testing capabilities and gain the flexibility needed to measure different wireless standards in rapid succession.

“In addition to accommodating all wireless standards, test vendors have to secure IoT at the service and product level,” said Frost & Sullivan Measurement & Instrumentation Industry Analyst Mariano Kimbara. “The market is visibly moving toward software-defined architecture as well as structure-based solutions, and away from purely hardware-based systems.”

T&M technical enhancements are aimed at facilitating high-volume production and field testing, obtaining ultra wideband signals and procuring data from several integrated wireless devices. Vendors are also making earnest efforts to meet the demand for new testing scenarios with PC control and software defined radio Wi-Fi solutions. These systems will cover all main wireless technologies in all stages of product life cycle including R&D, field testing, monitoring and deployment.

“As companies shift from proprietary solutions with minimal interoperability to more standardized solutions, they are likely to continue investing in the latest T&M technology,” noted Kimbara. “Overall, T&M vendors that will experience the most success are the ones that offer modular systems with superior customization and automation, complemented by rapid maintenance and affordable upgrades.”

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New Competition for the Global Test and Measurement Market in IoT Wireless Technologies is part of the Test & Measurement Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Portable and Handheld Analytical Instrumentation Market, Radio Access Networks (RAN) Capacity Planning and Management Market, Global Wireless Test Equipment Market, Emerging Opportunities in Global Analytical Instrumentation Services & Support Market, and Calibration and Repair Services Market in Europe. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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