Software-as-a-service will generate numerous growth opportunities, finds Frost & Sullivan's Measurement & Instrumentation team
SANTA CLARA, Calif., May 31, 2017 /PRNewswire/ -- The test and measurement (T&M) professional services market is experiencing double-digit growth fueled by new partnerships and business and revenue models. Innovative platform-centric business models, such as software-as-a-service (SaaS), effectively integrate software analytics, hardware and services, while asset management, prototyping, and data analytics create disruptive services and redesign the customer experience across the entire T&M life cycle.
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Current and Evolving Opportunities for Professional Services in the Test & Measurement (T&M) Market, Forecast to 2021, recent analysis from Frost & Sullivan's Test & Measurement Growth Partnership Subscription, finds that the T&M global advanced professional services market generated revenues of $254.4 million in 2016 and is expected to grow at a compound annual growth rate of 16.9 percent until 2021. The research analyzes emerging advanced service-based business models, competitor structures, market size, and end-user verticals showing major growth opportunities.
"Traditional offerings are focused on repair, calibration, leasing, and instrument tracking. In the future, the market will see a boom in software-centric service solutions, end-to-end business processes and operating systems, and fee-based business models," said Frost & Sullivan Measurement & Instrumentation Services 2.0 Lead Analyst Mariano Kimbara. "A potential growth scenario is T&M manufacturers expanding their service lines and pursuing open partnerships with software analytics players to harness new revenue streams and synergies."
Several developments and trends are driving growth in the T&M professional services market:
- Asset management makes up 20.3 percent of total market revenues with 34.5 percent of revenues generated from the telecommunication vertical segment. Integrated service package delivery model (asset tracking, usage optimization, repair and calibration management, logistics management, and sale of unused equipment) will provide new revenue streams and a platform for long-term sustainable growth.
- More than 70 percent of top fortune 500 companies have plans to offer their product as a service by 2021. Platform-as-a-service (PaaS) and data-as-a-service (DaaS) are business models with future revenue stream potentials.
- Software solutions that help digitize the test services and intelligently connect people, processes, data and test equipment are key focus areas for service providers.
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Current and Evolving Opportunities for Professional Services in the Test & Measurement (T&M) Market, Forecast to 2021
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SOURCE Frost & Sullivan