European test and measurement equipment markets by country. Frost & Sullivan
A new study finds that the largest European test and measurement equipment markets are currently in Germany, Russia and CIS, the UK, France, Scandinavia, Italy and Spain. By James Hunt:
A quick spot of Googling shows immediately just how many companies are now involved in test and measurement equipment rental, as opposed to selling such equipment. The rental sector has grown very significantly over the past decade or so, and this fact has been clarified by a new study.
As a result of the still continuing economic woes of parts of Europe, over the past two years, the region’s share in the electronic test and measurement equipment market has reduced, yet this is an opportunity for those firms involved in hiring out such equipment.
So says market research firm Frost & Sullivan Market in its new Insight, entitled ‘Test & Measurement Market in Europe: Trends in Rental and Leasing Services’, which finds that market participants in general have shown a greater interest in rental services to reduce acquisition and ownership costs associated with test and measurement equipment. Such firms will also help keep the instruments calibrated and in good condition.
The company believes that the share of rental and leasing services in the test and measurement industry could represent close to a third of the total market revenues in the future.
Commented Frost & Sullivan Test & Measurement Industry director, Jessy Cavazos: “Rentals are a good fit for customers who have short requirements, cannot afford buying the test instruments, or are in an industry evolving at a fast pace from a technological standpoint accelerating instrument obsolescence”.
The UK is the highest
This new analysis finds that, from a rental penetration point of view, some of the European markets have shown a greater likelihood to rent than others. The UK is one of these, displaying the highest rental penetration across the region.
Frost & Sullivan also says that he French market also exhibits a higher penetration of rental and leasing services for test equipment in comparison to other countries in the region, but it is dominated by two large companies. Spain and Italy have been high-growth markets for participants in recent years because their economic conditions are driving demand for rental services.
So, for the moment, the study finds, the ultimate target for market participants is Germany, which is Europe’s largest market for test and measurement equipment, but which currently features extremely low rental penetration.
Said Jessy Cavazos: “Other factors to take into consideration when analysing the European test and measurement market for rental and leasing services are the prominent industries in each country and the focus in terms of applications.
With certain industries stronger in specific countries, the end-user dimension is critical when evaluating the growth potential of European markets for rental and leasing services”, Ms Cavazos concluded.
For more information, email Julia Nikishkina at Julia.Nikishkina@frost.com, giving your full contact details.
