With the demand for voice, video, and data services, also called integrated triple play, on the rise, the demand for next generation services test and monitoring equipment market is poised for significant growth. In addition, growth in 3G/4G and other mobile networking technologies is also expected to further drive the momentum in integrated triple services, which will further boost the need for integrated triple play test and monitoring equipment.

A new study released by research firm Frost & Sullivan (News - Alert) shows that the global triple play and next-generation services test and monitoring market will reach $487.4 million in 2015. The estimated revenue earned in this space in 2010 was $187.7 million.

According to Frost & Sullivan, test and monitoring equipment is witnessing fast-paced evolution, mostly driven by customers. As consumers become more knowledgeable and demanding, vendors are upping the ante to roll out newer, more sophisticated test equipments, said the market watcher. Plus, added Frost & Sullivan, quality of experience (QoE) is a major trend in the voice over Internet protocol (VoIP) test equipment market today as the success of a test vendor depends on how effectively it is delivered to customers.

In a statement, Frost & Sullivan research analyst Sujan Sami, said, "Triple play services are witnessing considerable demand from telecommunication service providers, private and government enterprises, cable companies, and private subscribers." Sami added, "In this scenario, test vendors need to fine-tune their offerings and optimize quality of service (QOS) to boost market share and sustain growth."

Despite growth, however, the research firm sees some challenges confronting this test and monitoring equipment. For example, according to Frost & Sullivan, telecom operators are facing stiff competition from multiple system operators (MSO) and cable operators. Consequently, the demand for test equipment from the telecom market is reduced. In addition, pricing pressure is high in this sector, forcing vendors to deploy cost effective and “value for money” test equipment, said Frost & Sullivan.

Furthermore, while the awareness of triple play concepts and test equipment is on the rise, there is still inadequate knowledge regarding the business models. This is restraining sales of test and monitoring equipment to some extent, as customers have to be certain that they are using the right type of test equipment, asserted the market watcher.

Furthermore, Sami continued, "Apart from helping customers make informed choices, vendors also need to ensure timeliness, superior quality, and mobility to stand out in the market… They must also keep in mind that convergence of technology is critical, especially with the wireline and wireless trend increasing," stated Sami.