The oscilloscopes market has undergone significant changes in terms of product development, pricing, positioning and distribution as end-user industries became cautious about their spending and the sales of oscilloscopes decline according to a new report from market researchers Frost & Sullivan.
The analysis of the world oscilloscopes market, finds that the market earned revenues of $1,152.3 million in 2010 and estimates this to reach only $1,372.1 million in 2014.
“Product introductions have been one of the key strategies adopted by [T&M] vendors to sustain growth in this competitive market,” said Frost & Sullivan Research Analyst Prathima Bommakanti. “Vendors consistently reinvested in R&D to keep pace with end users' technological advancements, introducing high-end solutions in 2009 and 2010.”
The researcher says digital and software-driven oscilloscopes pose a growing threat to analog oscilloscopes. Their increasing ease-of-use, paralleled by advances in bandwidth and sampling rates, together with a reduction in prices and superior performance specifications mean that digital and software-driven oscilloscopes have the potential to replace analog equivalents in a wide number of applications.
The slowdown of the global economy restricted the capital availability for expansion of production facilities across most end-user segments. Electronic manufacturing, industrial and automotive and communications end users that contributed a significant percentage of revenues to the oscilloscopes market were the worst affected.
“The drop in demand from end users either stalled or postponed a significant number of product sales,” said Bommakanti. “This reduced the demand for oscilloscopes to unprecedented low levels.”
Meanwhile, the maturity of the market has provided limited opportunities for manufacturers to upgrade or launch new products, thereby increasing price pressure on them from end users and competitors. This trend has mainly been witnessed in the low-end and mid-range of the market.
With the rising need for higher bandwidth, Frost & Sullivan sees test vendors incorporating advanced test feature sets to accommodate future demand and are offering flexible solutions. At the same time, due to the growing complexity of oscilloscopes, vendors are bundling additional services with their products for customers.
“Additional services such as warranty, installation, technical support, maintenance and general service agreements are progressively becoming a part of the package being offered to customers,” said Bommakanti. “This is enabling manufacturers to differentiate themselves from their competitors and allowing premium pricing.”