Frost & Sullivan: Growth of Telecom Industry Spurs China's General Purpose Test Equipment Market
- Stand-alone Equipment is being Challenged by Integrated Instruments
BEIJING, May 25, 2012 /PRNewswire/ -- China's constant investment in its telecom and aerospace and defense industries is boosting the demand for general purpose test equipment. Such demand is leaning towards customized and integrated products and likely to threaten the conventional stand-alone test equipment market over the forecast period.
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 9.4 per cent between 2011 and 2017 for China's general purpose test equipment market, which was estimated to post $415.9 million in revenue in 2011, and estimates revenue to reach $713.5 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.
While this augurs well for the performance of the general purpose test equipment market in China, end-user industries including communications, aerospace, military and defense, electronics manufacturing, as well as industrial electronics and automotive expect test equipment with a high price-performance ratio.
There is an increasing need for higher performance test equipment in terms of higher bandwidth, frequency, and resolution. "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 Frost & Sullivan Research Analyst Wei Wei. "For that purpose, vendors are consistently investing in research and development to keep pace with technological advancements."
The main factors driving the demand for general purpose test equipment are the continuous development of wireless communication standards, the move to higher frequencies, and the increasing need for bandwidth. 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 and steady growth market.
However, since most segments in the general purpose test equipment market are mature, manufacturers are challenged to develop innovative products, causing competition to be more 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", notes Wei. "As a result, leading companies offer significant discounts to build their market share."
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
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General Purpose Test Equipment Market in China
P5B0-30
Contact:
Zhenhua Chen
Corporate Communications – China
P: +86-21-5407-5780
M: +86-1381-6974-015
E:zhenhua.chen@frost.com
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