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WPA market affected by mergers and acquisitions

A new report projects that demand for testing solutions generated by the constant evolution of standards and the emergence of new ones is going to drive the Wireless Protocol Analysers (WPAs) market.

This trend will eventually contribute to a slight growth rate in the next seven years.

The Frost & Sullivan study, conducted by Research Analyist Jakub Janiszewski, found that although the WPAs market size in 2006 remained stable in comparison to the previous year, next years are to bring about several changes in its outlook. Some factors, such as consequences of mergers and acquisitions among end-users, are going to negatively affect the market.

The report also states that in the world markets for WPAs, the market’s breakdown is anticipated to witness a change because M&As have a greater influence on sales of WPA for load stress generators. For this reason, in face of the market declining, the relative share of protocol analysers for troubleshooting and monitoring in the overall market revenues is going to rise.

Janiszewski says that analysts have estimated that the markets were worth approximately U$300 million in 2006. Revenues from large distributed deployments of protocol analysers for live network monitoring have been included in the market size, but this number does not include RF link analysers, as they are not traditional protocol analysers. The total market value remained stable in comparison to the last year. However, according to Frost & Sullivan analysts’ forecasts, in the next couple of years, the market is going to experience serious drops on sales. Conversely, in the longer run, the market is going recover and the revenues will eventually slightly exceed today’s level.

Within the WPA market in 2006, the protocol analysers for monitoring and troubleshooting segment was responsible for generating approximately 44 percent of revenues, with the remaining 56 percent generated by sales of load stress generators and functional testers. In the future the balance is likely to shift in favor of the first segment.

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