Test & Measurement market to cross $5 bn in 2011

MUMBAI: A series of technological and functional advancements in the

global test and measurement market has stepped up end-user demand for test

sets with additional capabilities, Frost & Sullivan said in a news analysis.

The willingness of end-users to pay more for the extra features has put manufacturers under severe pricing pressure to supply test and measurement products at competitive prices, which in turn affects their profit margins.

New analysis from Frost & Sullivan, World General Purpose Test & Measurement Equipment Market - A Compendium, reveals that revenue in this market totaled $3.84 billion in 2004 and projects to reach $5.407 billion in 2011.

The downturn in the overall test and measurement market in 2001 and 2002 inhibited its growth and the subsequent recovery has been uneven. Badly hit companies, which lost more than half their business, have no capital to invest further.

"Nevertheless, 2003 was a turnaround year as many leading companies have recovered from the downturn and contributed to the rebuilding of the industry," emphasizes Frost & Sullivan senior research analyst Madhan Dhandayutham.

The main growth driver is the end-users' requirement to speed up the testing process, which spurs demand for advanced test equipment. These advanced instruments, such as the spectrum analyzer, can process signals faster, increasing the speed of the manufacturing throughput.

In addition, as wireless and other electronic industries experience a wide range of technological advancements in terms of speed, accuracy, features and other capabilities, consumer demand for high-end products is surging.

These enhancements push research and development activities in test and measurement companies, especially in the case of products such as oscilloscopes, spectrum analyzers and signal generators.

Research focus is particularly required to provide equipment where measurement systems are integrated into the instruments. Along with expansion of product portfolios, this can help the growing test industry keep pace with its end-user base.