Wireless testing market to reach $19.1Bn by 2030 - MSG
According to the Market Statsville Group (MSG), the global wireless testing market size is expected to grow from US$10.5 billion in 2021 to US$19.1 billion by 2030, at a CAGR of 6.9% from 2022 to 2030.
Wireless testing evaluates a device that can connect with other devices and networks, and perform operational tasks using the connection. Several wireless devices are tested by performing a series of tests to verify regulatory compliance, device interoperability, performance, and user safety.
The researchers find that the wireless communications market has grown significantly, with devices required to undergo effective wireless testing to ensure they perform correctly and are safe, reliable, and secure.
The increased integration of wireless technologies is enabling connectivity services in all kinds of devices and applications, such as smartphones, wearables, smart cities, connected cars, smart homes, smart grids, and eHealth.
Also, wireless testing solutions such as UE testing, chipset testing, and wireless security testing focus on the latest technologies' performance and quality of experience.
There are now pre-silicon verification and post-silicon verification that help improve the quality and performance of the devices, which use wireless protocols such as Bluetooth, Zigbee, Wi-Fi, LTE, 2G, 3G, 3GPP, 4G, 5G, and NFC.
According to the researchers, the prominent factors that drive the market growth include an increase in the adoption of smart electronic appliances, an increase in wireless technologies, and a surge in the usage of smart devices.
A rise in the usage of smart devices in emerging economies creates growth opportunities for the wireless testing market. In addition, growth in population and a surge in internet penetration are key factors boosting the demand for smart devices.
However, a lack of skilled workforce and high cost are expected to hamper the growth of the wireless testing market. On the contrary, the high adoption of internet of things (IoT) technologies is anticipated to provide lucrative opportunities for expanding the wireless testing industry during the forecast period.
Market drivers: Increase in usage of smart devices
Smart technology and connectivity are the major drivers of smart devices, which enhances the requirement of product safety. Growth in the adoption of smart devices in emerging countries helps create opportunities for various technologies, the researchers state.
Furthermore, an increase in the population and growing internet saturation are some of the key factors driving the demand for smartphones and smart devices, which may help drive the market growth for wireless testing services.
The advanced features appeal to the attention of smart devices, which also help drive the market growth. In addition, the adoption of smartphones and smart devices has an enormous impact on the wireless testing industry.
The beginning of 5G technology has already redefined the device testing landscape, and cutting-edge telecom companies have shifted from turnkey testing to a system-level approach.
Market restraints: Lack of skilled workforce and high cost
The cost of Wi-Fi networks goes far beyond purchase price, which is the amount paid for hardware and software at installation.
According to Gartner, 80% of total IT costs occur after the initial purchase. Wi-Fi networking considers the purchase costs and other costs that arise over the lifespan of the units, even the intangible ones. For instance, the antennas for a leading 4G enabled smartphone is typically a high cost.
With the adoption of 5G technology, businesses can expect significant increases in component costs in the coming year, which would hamper the growth of the wireless testing market, the researchers state. In addition, the lack of a skilled workforce would restrain the market growth for wireless testing.
Global wireless testing market segmentation
By offering, the global wireless testing market is divided into equipment and services. The equipment segment was the highest contributor to the market, with a share of 68.4% in 2021.
Testing equipment is used for testing network signals to improve and maintain the efficiency and speed of the network. The technological advancements in networking and communication, such as 4G, and 5G, integrated with smart devices, influence various enterprise's adoption of such wireless networks.
Growth in the IoT and AI trends and the surge in demand for 5G technology in emerging economies are likely to provide profitable opportunities for wireless test equipment, the researchers state.
A rise in advancement and innovations in wireless technologies, as well as the merger, acquisition, and partnership of leading players to develop advanced technologies, is also expected to create market opportunities during the forecast period.
Asia Pacific accounts for the highest CAGR during the forecast period
Based on the regions, the global wireless testing market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa in the research report.
Globally, Asia Pacific is the fastest-growing region with a CAGR of 9.4% during the study period. Asia-Pacific is analysed across China, Japan, South Korea, India, and the rest of Asia-Pacific.
The region is projected to grow at the highest CAGR during due to the adoption of wireless technologies and the high demand for smart devices. The rapid transformation from automated devices to autonomous devices due to the integration and advancement of IoT and AI technologies drives the demand for wireless testing.
In addition, Asia-Pacific is the largest supplier to the automotive industry with a growing economy and advancements in connectivity technology. The rise in the adoption of advanced technologies in the automotive and telecommunication sector and a hike in the number of developing economies are expected to create lucrative opportunities for market growth.