Network Equipment-Building System (NEBS) Testing and Certification Services Market Size (2024 - 2030)

As per our research report, the Network Equipment-Building System (NEBS) Testing and Certification Services Market size is estimated to be growing at a CAGR of 6.6% from 2024 to 2030.

Network Equipment-Building System (NEBS) testing and certification services encompass a range of standards designed for evaluating and certifying telecommunications equipment. Established by the telecommunications sector, these standards ensure that the equipment is secure, dependable, and performs effectively under diverse environmental conditions. For telecom equipment manufacturers and service providers, NEBS testing and certification are vital to adhering to industry standards and regulations, which helps in achieving customer satisfaction and sustaining their competitive edge. These services address multiple dimensions of telecom equipment, including reliability, environmental adaptability, and safety.

NEBS testing and certification services involve a complex process that demands specialized knowledge and equipment. Consequently, only a select number of companies possess the expertise and resources to provide these services. This limitation can act as a barrier to entry for new market participants and potentially restrict the overall growth of the industry.

Regarding the impact of the COVID-19 pandemic on NEBS testing and certification services, the effects have been mixed. The surge in demand for connectivity driven by remote work and online education contributed positively to the demand for telecommunication services and equipment, which in turn indirectly benefited the NEBS testing and certification sector. However, the pandemic also led to supply chain disruptions and delays, adversely affecting the production and testing of network equipment.

KEY MARKET INSIGHTS:

• Based on the Type, NEBS certification encompasses evaluations of physical, electrical, and environmental factors. Within Tier certifications, Tier 1 ensures that equipment is appropriate for a standard data center environment. Tier 2 demands enhanced redundancy and reliability. Tier 3 requires the absence of single points of failure, redundant components, and an availability rate of 99.982%. Recently, there has been an increasing demand for higher NEBS certification levels, especially Tier 3, driven by the rising need for data center reliability and uptime. This trend has prompted the development of new testing and certification standards to address these requirements. The market is anticipated to grow further as more companies aim to adhere to NEBS standards and enhance the reliability of their network equipment.

• Based on the End-Use Industry, The telecommunications sector represents the largest end-user of NEBS testing and certification services, driven by the growing adoption of cloud-based solutions and the need for efficient, secure communication networks. The aerospace and defense industry also plays a crucial role as a significant end-user, due to its requirement for dependable and secure communication systems in critical applications. Additionally, the healthcare sector is increasingly incorporating connected medical devices and telemedicine, which heightens the demand for NEBS testing and certification services to ensure the safety and reliability of these technologies. The energy and utilities sector is similarly turning to NEBS testing and certification to guarantee the reliability and safety of its communication networks. The rising emphasis on compliance and safety standards is expected to further boost the demand for NEBS testing and certification services across various industries.
• Based on the Component, The rising demand for high-performance and reliable network equipment has fueled the expansion of the NEBS testing and certification services market across different component types. Stringent regulatory standards for telecommunications equipment have led to the widespread adoption of NEBS-certified components within the industry, contributing to market growth. The segment for switch components is anticipated to capture a significant share of the NEBS testing and certification services market, driven by the increasing need for high-speed and secure data communication across various sectors. The growing adoption of cloud computing and big data analytics has further amplified the demand for switches, which in turn propels the growth of the NEBS testing and certification services market. Additionally, the advancement of technologies such as 5G, IoT, and AI has heightened the demand for NEBS-certified servers, storage devices, and routers. These trends are expected to continue driving the expansion of the NEBS testing and certification services market for various component types throughout the forecast period.
• Based on the region, North America is expected to capture a significant share of the market due to the presence of major industry players and widespread adoption of NEBS standards in the region. The Asia-Pacific region is projected to experience substantial growth, driven by the increasing adoption of advanced technologies, a rising demand for cloud-based services, and growing investments in the telecommunications sector. Similarly, the Middle East and Africa, as well as South America, are anticipated to see notable growth due to the escalating adoption of NEBS standards by telecom operators and the rapid expansion of the telecom industry in these areas. The growing demand for high-speed internet connectivity and the adoption of advanced technologies such as 5G are anticipated to further fuel the expansion of the NEBS testing and certification services market in these regions.
• Companies playing a leading role in the Network Equipment-Building System (NEBS) Testing and Certification Services Market profiled in this report are TUV Rheinland AG, Intertek Group plc, CSA Group, Bureau Veritas SA and DEKRA Certification B.V.