Frost & Sullivan: Manufacturing Demands in Southeast Asia Drives Uptake of Used and Rental General Purpose Test Equipment
-- Customer education vital to divest potential customers of the notion that test equipment purchases need to be new
KUALA LUMPUR, Malaysia, June 11, 2014 /PRNewswire/ -- The increasing amount of manufacturing and R&D activities in Southeast Asia is driving the demand for used and rental general purpose test equipment. The inflow of foreign direct investment (FDI) has spawned demand for raw materials, processing capabilities, testing capabilities and other support functions, which bode well for vendors of refurbished and rented test equipment.
New analysis from Frost & Sullivan, Used and Rental General Purpose Test Equipment Market in Southeast Asia, finds that the market earned revenues of US$31.9 million in 2013 and estimates this to reach US$60.2 million in 2018. The study includes oscilloscopes, spectrum analyzers, network analyzers, signal generators, power meters, multimeters and electronic counters.
The used test equipment segment accounted for more than 75 percent of the total market in 2013, while the rental segment of the market is still nascent due to the low level of awareness among end-users on the benefits of rentals and the prevailing notion that test equipment must be purchased brand new. Moving forward, the rental segment is expected to grow at a faster pace than the refurbished test equipment segment. Test equipment rental vendors are pro-actively engaged in educating customers on the availability and viability of test equipment rental as an alternative.
Additionally, uncertain economic conditions and budget crunch have impacted end-user spendings, resulting in tight financial budgets. Under these circumstances, opting for the rental of test equipment or purchasing refurbished test equipment may be more efficient for end users as it allows them to lower the cost of ownership on test equipment.
"Rental test equipment companies are looking to make the most of the rise in manufacturing and R&D by building partnerships with end users to enhance support in terms of services, and understand their needs better," said Frost & Sullivan Measurement & Instrumentation Industry Analyst Susan Sahayan.
From a vendor standpoint, having the right equipment with the right configuration that meets the customer's needs may at times be a challenge. The onus is on the rental and refurbished test equipment vendors to maintain a strong product portfolio, covering the latest test and measurement products as well as older generation test equipment for legacy applications that are still performed by end users.
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Used and Rental General Purpose Test Equipment Market in Southeast Asia is part of the Test & Measurement (http://www.testandmeasurement.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of End Users' Perspective on the Global Communication Test Equipment Market; Strategic Analysis of the World Optical and Image Sensors Market; and Used and Rental General Purpose Test Equipment Market in Southeast Asia. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Used and Rental General Purpose Test Equipment Market in Southeast Asia
P77E-30
Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61-(02)-8247-8927
F: +61-(02)-9252-8066
E: djeremiah@frost.com
Carrie Low
Corporate Communications – Asia Pacific
P: +603-6204-5910
F: +603-6201-7402
E: carrie.low@frost.com
Melissa Tan
Corporate Communications – Asia Pacific
P: +65-6890-0926
F: +65-6890-0999
E: melissa.tan@frost.com
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