Latin America's wireless test and equipment markets are expected to grow at a compound annual growth rate (CAGR) of 11.6%, from US$159mn in 2010 to US$342mn in 2017, according to a new analysis from ICT research and consultancy firm Frost & Sullivan.
Currently, Latin America is characterized by the coexistence of 2G, 3G and 4G wireless standards. A lack of standardization has restrained vendors in terms of product development and customer base expansion. But Frost & Sullivan believes regulators will begin to play an important role in aligning with international standards.
"A key factor driving demand for wireless test equipment is the continuous development of wireless communication standards from 2G and 2.5G to 3G, 3.5G, HSPA and 4G," said Frost & Sullivan research analyst Mariano Kimbara. "There are several 4G trials and deployments slated to begin by the end of 2011 and the beginning of 2012, which are expected to generate growth for this market."
The analyst said rising smartphone and tablet sales, combined with high mobile penetration rates, have intensified the need to deploy HSPA+ in large cities. "This will highlight the need for more robust and reliable wireless test and equipment."
LTE deployments are also expected to boost the wireless test and equipment markets, according to the consultancy.