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APAC test equipment market to hit $923M in 2012

Posted: 11 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Frost & Sullivan? oscilloscopes? oscilloscope? WiMAX? WLAN?

The Asia Pacific general purpose test and measurement equipment market is projected to reach $922.9 million in 2012, up from $656.2 million in 2005, reported Frost & Sullivan. According to the market research firm, this market will have a stable growth over the forecast period, due to good performance of the communications, electronic manufacturing and semiconductor sectors.

"The communications industry is expected to be a key driver for the growth of the Asia-Pacific general purpose test and measurement equipment market," said Arun Kumar C., research analyst, Frost & Sullivan "This is evident because sectors such as broadband communications, microwave communications, satellite communications, military applications and mobile telephony are seeing high growth throughout the region."

At present, South Korea and Japan is witnessing WLAN deployments and commercialization of ultra-wideband. 3G technologies are seeing expansion in Taiwan, Australia, while WiMAX is being deployed in Taiwan and Australia. Moreover, the switch-to-digital transmission of TV signals in Japan and Australia is expected to for completion by 2010.

While electronic exports from Taiwan, Japan, South Korea and Singapore will likely impact the overall market demand, the demand for middle- and low-end products, such as oscilloscopes, function generators and multimeters segments, expects to be sustained by the educational sector composed of universities, polytechnics and training labs.

The report further said that interviews with key market participants also showed that the military and defense sector hold considerable potential. Expenditure on military fortification and defense surveillance will rise uniformly throughout the Asia-Pacific region, sustaining the demand for general purpose test and measurement equipment. This driver is likely to have a medium impact on the market during the forecast period.

However, market participants face intensifying price-based competition, which threatens to reduce the already low margins. This is evident in the middle- and low-end product segments where many local participants compete solely on price. Moreover, the entry of low-priced China products is further affecting the market, tightening overall margins.

"In the case of PXI- and PC-based equipment, the challenge lies in the market, as it is highly fragmented with a huge number of participants offering a limited set of solutions," said Kumar. "Despite the market for the above equipment growing at a very rapid rate, margins expect to decline due to the above mentioned fragmentation."

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