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Frost & Sullivan: Expansive Increase of Smartphone Use Creates a Need for Mobile Data Monitoring Solutions

-- Adoption of over-the-top applications stimulates market growth

MOUNTAIN VIEW, California, March 27, 2014 /PRNewswire/ -- Over the next five to ten years, data traffic is expected to increase exponentially due to the growing adoption of smartphones globally. This amplified volume of data will place considerable strain on the networks of communication service providers (SPs) and their information management systems, thereby stoking demand for mobile data monitoring systems.

Mobile data monitoring solutions are critical tools to improve overall mobile data performance and customer experience, as these can analyze mobile data and optimize the performance of their networks.

New analysis from Frost & Sullivan, Global Mobile Data Monitoring Market, finds that the market earned revenue of $312.4 million in 2013 and estimates this to more than triple, reaching $1.103 billion in 2020, at a compound annual growth rate of 19.8 percent.

For complimentary access to more information on this research, please visit: http://bit.ly/1gYp1jL.

Due to the rocketing adoption of smart devices, mobile apps and video are expected to be the most consumed types of data. This growth is unlikely to dip, as social networking traffic and machine-to-machine (M2M) communication continues to rise in popularity. Over the next five years, M2M traffic is expected to outstrip even that of social networking traffic, as connected devices and sensors are anticipated to exceed 50 billion units.

Currently, SPs are ill equipped to deal with this demand for data.

"Communications SPs must invest in mobile data monitoring solutions to ensure positive end-user experience and lower customer churn," stated Frost & Sullivan Communications Test & Measurement Program Manager Olga Yashkova-Shapiro. "Already, many SPs have rolled out Long-Term Evolution (LTE) networks and are exploring other data traffic offload strategies to keep pace with demand."

In addition to the adoption of smart phones, over-the-top (OTT) applications are contributing to the mounting demand for mobile data monitoring solutions. The swelling data traffic is forcing telecom companies to invest in more secure and complex testing capabilities to match strides with network expansions as well as upgrades in 3G and LTE.

Consumers are demanding more bandwidth-hungry applications, which require operators to deploy faster transmission links. When mobile users log on to 3G networks, they expect the applications to work seamlessly. Moreover, the information received from these different networks must be correlated.

Although the adoption of LTE has helped achieve the required data rates, there are significant concerns about the quality of voice and data. Companies are hoping to mitigate these issues with the adoption of voice over LTE (VoLTE), an IP-based multimedia system standardized by the third-generation partnership project (3GPP) to maximize international interoperability. VoLTE allows SPs to reduce the cost of delivery, enhance voice service offerings, and combat the service degradation in OTT services such as Skype and Viber.

"Traditional voice monitoring or service assurance solutions were not designed to analyze voice delivered over a data network," noted Yashkova-Shapiro. "Therefore, the demand for next-generation mobile data monitoring solutions to support VoLTE is expected to increase and more operators are investing in new mobile devices required to support the VoLTE standards."

Overall, SPs' keenness to provide the highest levels of quality of service and quality of experience is expected to sustain the demand for comprehensive management solutions and proactive monitoring.

Global Mobile Data Monitoring Market is part of the Test & Measurement (http://www.testandmeasurement.frost.com) Growth Partnership Service program. Frost & Sullivan's related research services include: Global Network Monitoring Switches Market, Analysis of the Global Fiber Optic Test Equipment Market, Global Machine-to-Machine (M2M) Communications Test and Monitoring Equipment Market, Global Wireless Test Equipment Market, and The Global Long-term Evolution Test Equipment Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Global Mobile Data Monitoring Market
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Corporate Communications – North America
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