US and Europe OTA Testing Market is expected to reach US$ 814.6 Million by 2028

PRESS RELEASE BY The Insight Partners 22 Feb 2022

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According to our latest market study, titled "US and Europe OTA Testing Market Forecast to 2028 – COVID-19 Impact and Analysis – by Technology (code division multiple access (CDMA), global system for mobile communication (GSM), universal mobile telecommunication system (UMTS), long term evolution (LTE), and 5G), Service (services and hardware), Frequency (Below 450 MHz, 450 MHz to 6 GHz, 6 GHz to 20 GHz, 20 GHz to 40 GHz, 40 GHz to 60 GHz, and 60 GHz and Above), Application (home automation, mobile payment system, utilities management system, traffic control system, and others), and End User (aerospace and defense, consumer electronics, automotive, logistics and transportation, healthcare, and others),".

The US and Europe OTA testing market is expected to grow from US$ 561.6 million in 2021 to US$ 814.6 million by 2028. It is estimated to grow at a CAGR of 5.5 % from 2021 to 2028. The emergence of 5G is rapidly approaching in the region and is raising the demand for OTA testing in the current scenario.

In the era of continuous changes, many telecommunication service providers have acknowledged the demand for an entire overhaul of the existing wireless infrastructure. While numerous factors have created the need for an overhaul, the contribution of the existing infrastructure to global warming is one of the most notable factors demanding a change in the existing telecommunication infrastructures.

Improving the quality of service, delivering services to a broader geographical area, and being sustainable in the era when millions and billions of devices are getting connected over the network are a few other factors that have led to the conceptualization of 5G network infrastructure. 5G has a potential to address few key challenges of network operators while offering mobile broadband. They are cost-effective functionality to manage ever-growing traffic on the network, help meet speed and quality expectations over the network, and monetize customer value in the highly competitive market landscape.

Moreover, the data traffic is forecasted to grow at a CAGR of nearly 40% between 2018 and 2023. The exceptional growth in data traffic over the internet is rightly attributed to the rising penetration of smartphones and other consumer electronic devices connected over the internet with the advent of IoT. The growth trajectory of fully autonomous cars is largely anticipated to depend upon several parameters such as technological improvements, consumer preference to adopt fully automated cars, pricing, and the ability of the suppliers and OEMs to address the critical concerns related to the safety of the vehicles. However, the availability of limited technical and skilled staff for conducting numerous OTA testing of niche end-user industries continues to be an industry pain point, subsequently restricting the market growth. As telemedicine/telehealth uses machine to machine (M2M) and Internet of Things technology, the demand for connected devices is rising in the healthcare industry that is projected to boost the scope of OTA testing in healthcare devices and thus market growth. The emergence of next-gen TV sets is forecasted to propel the market of OTA testing in the forthcoming duration.

Additionally, by March 2021 end, 5G commercial services were successfully deployed in 27 European countries, including Austria, Belgium, Czech Republic, Estonia, Denmark, France, Finland, Germany, Hungary, Italy, Ireland, Netherlands, Poland, Spain, and Sweden. In March 2021, 258 trials were conducted in Europe. Moreover, trials related to 5G Standalone networks & Open RAN are increasing in this region, which is expected to drive the demand for 5G and 5G compatible devices. This factor is contributing toward the OTA testing significantly and, hence, supporting the market.

Impact of COVID-19 on US and Europe OTA Testing Market

The world has been taken off guard by the COVID-19 pandemic, with most countries ill-prepared to deal with the problems posed by this quickly spreading virus that has harmed both health and the economy. The US market suffered a huge loss in the first half of 2020 due to the high number of COVID-19 cases. Post lockdown, the market witnessed increasing demand for digital services. The US is among the leading country in adopting smart IoT-based devices due to good infrastructure support for high-speed internet services. Adopting the 5G network is supposed to drive the market growth post lockdown.

The report assesses the US and Europe OTA Testing Market as follows:

The OTA testing market is analyzed on the basis of technology, type, frequency, application, and end user across the US and Europe. The OTA testing market is bifurcated on the basis of end user into aerospace and defense, consumer electronics, automotive, logistics and transportation, healthcare, and others. Currently, LTE technology dominates the market. However, 5G is anticipated to lead the OTA testing market by the forecast period.

Furthermore, OTA testing has its application in many areas, such as home automation, mobile payment system, utilities management system, traffic control system, and others.

Market players present in the OTA testing market are mainly focusing on technology enhancements by implementing advanced technologies. The large firms are adopting the strategy of acquisition and collaboration with the various companies for enhancing their capabilities and expanding their footprint in various geographies. This type of strategy allows the company to strengthen its footprint in the market. Also, key market players influencing the market are profiled in the study and their SWOT analysis and market strategies. The report also focuses on leading industry players with information such as products and services offered, financial information of last three years, key development in the past five years.

Some key players in the US and Europe OTA testing market are Anritsu Corporation, Bureau Veritas SA, CETECOM GmbH, Eurofins Scientific SE, Intertek Group Plc, Keysight Technologies Inc., ROHDE, and SCHWARZ GmbH and Co. KG, SGS, TUV Rheinland AG, and UL LLC.

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