Frost & Sullivan: Customized and Integrated Products Spur China’s General Purpose Test Equipment Market

Shanghai, January 17, 2012 (PressReleasePoint) - China’s general purpose (GP) test equipment market is leaning towards customized and integrated products, which are driving the future market trends. The country’s constant investment in its aerospace and defence industry is boosting the demand for GP test equipment.
 
New analysis from Frost & Sullivan (http://www.testandmeasurement.frost.com), General Purpose Test Equipment Market in China forecasts a compound annual growth rate (CAGR) of 9.1 per cent between 2010 and 2017 for China’s general purpose test equipment market, which posted $389.0 million in revenue in 2010, and estimates revenue to reach $713.50 million by 2017.
 
During the 12th Five-Year Plan period (2011 to 2015), China plans to accelerate the development of 4G by conducting large-scale experiments on its own time-division long-term evolution (TD-LTE) technology and putting it to commercial use.
 
End-user industries such as communications, aerospace, military and defence, electronics manufacturing, as well as industrial electronics and automotive expect test equipment with a high price-performance ratio.
 
“The main factor driving the demand for GP test equipment is the continuous development of wireless communication standards, the move to higher frequencies, and the increasing need for bandwidth,” notes Frost & Sullivan Research Analyst Wei Wei. “High-end customers are more concerned with higher bandwidth, accuracy, and operating systems than price; therefore, product introductions are one of the key strategies adopted by vendors to sustain expansion in this competitive, albeit slow-growth market.”
 
Since most GP test product segments are mature, overall market growth is expected to be low during the forecast period. Therefore, there is little opportunity for manufacturers to develop innovative products, causing competition to be mostly price-based. Furthermore, the application of integrated equipment is likely to have an adverse impact on the market demand for stand-alone equipment.
 
Customers, particularly in the mid- to low-end test equipment market, are highly price-sensitive and transfer this price pressure to the equipment manufacturers. As a result, leading companies offer significant discounts to build their market share. Due to the increasing price-performance ratio of instruments, vendors are offering specialized customer service and technical support to ensure quality of service.
 
“Test equipment vendors are continuously improving their high-end products to deliver better performance as well as their capability to manage wider bandwidth and digitally-modulated signals at higher frequencies,” notes Wei. “Meanwhile, vendors are consistently investing in research and development to keep pace with technological advancements.”
 
If you are interested in more information on this study, please send an e-mail with your contact details to Zhenhua Chen, Corporate Communications, at zhenhua.chen@frost.com
 
General Purpose Test Equipment Market in China is part of the Test & Measurement Growth Partnership Services program, which also includes research in the following markets: oscilloscopes, signal generators, arbitrary waveform generators, logic analyzers, spectrum analyzers, power meters, multimeters, electric counters, VXI-based test equipment, and PXI-based test equipment. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
 
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