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Analysis of the Dimensional Metrology Market
in Emerging Economies Need for Low-cost Equipment will Fuel Growth
NBAC-30
March 2013
2 NBAC-30
Research Team
Aravind Govindan Senior Research Analyst
Measurement & Instrumentation
(91) 44-66814174
Lead Analyst
Research Manager
Vijay Mathew Program Manager
Measurement & Instrumentation
(91) 44-66814183
Strategic Review Committee Leader
Sujan Sami Industry Manager
Measurement & Instrumentation
(91) 80-67028015
3 NBAC-30
Contents
Section Slide Number
Executive Summary 5
CMM Market Overview 12
CMM Market
• External Challenges: Drivers and Restraints 17
• Forecasts and Trends 25
• Market Share and Competitive Analysis 43
Brazil Breakdown 50
Russia Breakdown 58
India Breakdown 67
China Breakdown 75
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Contents (continued)
Section Slide Number
ODS Market Overview 83
ODS Market
• External Challenges: Drivers and Restraints 88
• Forecasts and Trends 96
• Market Share and Competitive Analysis 116
Brazil Breakdown 121
Russia Breakdown 129
India Breakdown 138
China Breakdown 147
The Last Word 155
Appendix 158
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Executive Summary
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Executive Summary
• This research study covers the dimensional metrology market, which is comprised of both the
coordinate measuring machines (CMM) and the optical digitizer and scanner (ODS) markets in Brazil,
Russia, India, and China (BRIC).
• In 2011, the mature BRIC CMM market generated $132.5 million in revenue, and a relatively stable
compound annual growth rate (CAGR) of 6.7 percent is expected to 2016. Bridge-type machines
captured 79.6 percent of the total market in 2011.
• The BRIC ODS market is in a nascent stage and generated $71.5 million in revenue in 2011; overall,
this market is expected to have a 3.1 percent CAGR to 2016.
• Technology presents high entry barriers; however, companies with a strong research and development
(R&D) background and focus have the potential to enter the CMM market.
• China is predicted to remain the biggest market in the BRIC cluster, and a combined total of $160.5
million in revenue is expected for the CMM and ODS markets in China by 2016.
• Research indicates that leading market participants are Hexagon Metrology, Carl Zeiss, and Faro
Technology.
• Low-cost CMMs and ODS applications are expected to create more demand for dimensional metrology
and attract new clients.
Source: Frost & Sullivan analysis.
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Compound
Annual Growth
Rate
6.7%
(CAGR, 2011–2016)
Market
Concentration
60.5%
(% of market share held by
top two companies)
Executive Summary—CMM Market Engineering
Measurements
Market Stage
Mature
Market Revenue
$132.5 M
(2011)
Market
Units/Volume
1,927
(2011)
Average Price
Per Unit
$100,000
Base Year
Market Growth
Rate
7.9%
Customer Price
Sensitivity
8
(scale:1 [Low] to 10 [High])
Degree of
Technical
Change
6
(scale:1 [Low] to 10 [High])
CMM Market: BRIC, 2011
Market Overview
For a tabular version, click here. Stable Increasing Decreasing
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
Market Size for
Last Year of
Study Period
$187.5 M
(2016)
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Executive Summary—CMM Market Engineering
Measurements (continued)
Stable Increasing Decreasing *Companies with revenue greater than $10.0 M. Note: All figures are rounded. The base year is 2011.
Source: Frost & Sullivan analysis.
Replacement
Rate
15 to 20
Years (average period of unit
replacement)
Average
Product
Development
Time
4
Years
Number of
Companies that
Exited*
0
(2011)
Number of
Companies that
Entered*
10
(2011)
Number of
Competitors
15
(active market competitors in
base year)
Attachment
Rate
3
(current number of units per
user–2011)
Competitor Overview Total Addressable Market
Industry Advancement
Average R&D
Spend as
Percent of
Market Revenue
8.0% to
9.0%
9 NBAC-30
Compound
Annual Growth
Rate
3.1%
(CAGR, 2011–2016)
Market
Concentration
59.5%
(% of market share held by
top three companies)
Executive Summary—ODS Market Engineering
Measurements
Market Stage
Nascent
Market Revenue
$71.5 M
(2011)
Market Units
900 to
1,000 (2011)
Average Price
Per Unit
$60,000
Base Year
Market Growth
Rate
2.0%
Customer Price
Sensitivity
8
(scale:1 [Low] to 10 [High])
Degree of
Technical
Change
7
(scale:1 [Low] to 10 [High])
ODS Market: BRIC, 2011
Market Overview
For a tabular version, click here. Stable Increasing Decreasing
Market Size for
Last Year of
Study Period
$88.1 M
(2016)
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
10 NBAC-30
Executive Summary—ODS Market Engineering
Measurements (continued)
Stable Increasing Decreasing *Companies with revenue greater than $10.0 M. Note: All figures are rounded. The base year is 2011.
Source: Frost & Sullivan analysis.
Replacement
Rate
6 to 10
Years (average period of unit
replacement)
Average
Product
Development
Time
8 to 12
Months
Number of
Companies that
Exited*
0
(2011)
Number of
Companies that
Entered*
10
(2011)
Number of
Competitors
20
(active market competitors in
base year)
Attachment
Rate
3
Competitor Overview Total Addressable Market
Industry Advancement
Marketing
Spend as a
Percent of
Market Revenue
2.0%
Average R&D
Spend as a
Percent of
Market Revenue
10.0%
(current number of units per
user–2011)
11 NBAC-30
Executive Summary—CEO’s Perspective
3 Creating awareness about dimensional
metrology at all levels will increase market
opportunities.
4 Heavy investment in research is required to
make low-cost CMMs and scanner
applications.
5 Dimensional metrology manufacturers must
partner with governments to generate business
opportunities, especially in Brazil and India.
1 Low-cost CMMs and ODS applications have
significant growth prospects.
Source: Frost & Sullivan analysis.
2 A direct presence in BRIC is the key approach
for market visibility.
12 NBAC-30
CMM Market Overview
13 NBAC-30
CMM Market Overview—Definitions
The product segments included in the CMM market include:
Bridge-type machine—This has a horizontal frame supported by two vertical columns. The machine arm is
vertically suspended to measure the work piece.
Gantry-type machine—This has housing that covers the entire structure, which must measured, inspected,
or scanned. This machine is well suited for inspection applications in the automotive, aerospace, and heavy
transportation industries.
Horizontal arm machine—This has flexible, vertical support and a horizontal arm that supports the probe.
Articulated arm machine—This is a portable device with articulated or multi-axis arms. The probes can be
placed in different directions, which increases flexibility.
End-user industries are divided into the following segments:
• Automotive—Includes the various industries involved in the automotive supply chain, such as
component manufacturers and original equipment manufacturers (OEMs)
• Aerospace and Defense—Includes aerospace, defense, and military applications, such as commercial
and private aviation spacecraft, military, and defense labs
• Heavy engineering and machine shops—Includes all energy, industrial manufacturing applications, and
machine shop and metal fabrication work
• Others—Includes electronics and medical devices
Geographic Regions Covered
The geographic focus of this research is restricted to Brazil, Russia, India, and China (BRIC).
Source: Frost & Sullivan analysis.
14 NBAC-30
CMM Market Overview—Key Questions This Study Will
Answer
Which country is most preferred for current profits and future growth?
How are companies meeting the needs of end-user industries?
What does the competitive landscape look like?
Which country appeals to all participants?
Which end-user segment presents the most growth opportunities?
Source: Frost & Sullivan analysis.
