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In-depth Analysis of the Global Portable/Handheld Test Equipment Market LTE Deployments Across the World Drive Market Growth NC59-30 September 2013

In-Depth Analysis of the Global Portable/Handheld Test Equipment Market

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In-depth Analysis of the Global Portable/Handheld Test

Equipment Market LTE Deployments Across the World Drive Market Growth

NC59-30

September 2013

2 NC59-30

Research Team

Jessy Cavazos Industry Director

Test & Measurement

Sujan Sami Industry Manager

Measurement & Instrumentation

Lead Analyst

Program Manager and Strategic Review

Committee Leader

Special Thanks

Raaj Datta

Assistant Editor

Jeannette Garcia Corporate Communications

Measurement & Instrumentation

210.477.8427

[email protected]

For more information:

3 NC59-30

Section

Executive Summary

Market Overview

Total Portable/Handheld Test Equipment Market

• External Challenges: Drivers and Restraints

• Forecast and Trends

• Market Share and Competitive Analysis

• Mega Trends and Industry Convergence Implications

General Purpose Test Equipment Segment Breakdown

• Market Share and Competitive Analysis—General Purpose Test Equipment Segment

Electrical Test Equipment Segment Breakdown

• Market Share and Competitive Analysis—Electrical Test Equipment Segment

Environmental Test Equipment Segment Breakdown

• Market Share and Competitive Analysis—Environmental Test Equipment Segment

The Last Word

Appendix

Contents

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Executive Summary

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• With the focus of test equipment end users moving towards battery-operated instruments

and integrated test equipment, the handheld/portable test equipment market is expected

to witness technological changes and enhanced growth during the forecast period.

• (Long Term evolution) LTE deployments across the world are expected to bolster the

growth of portable/handheld RF test equipment.

• However, the use of these instruments is expanding beyond the wireless

communications market and gaining momentum in critical applications such as military

and aerospace due to their portability, ease of use, and instant results.

• Although the majority of the revenues are coming from field applications, portable

instruments are expected to make inroads into R&D applications as a complementary

product to existing benchtop instruments.

• Price pressure is severe in this market as the products are typically low-cost. It is even

more severe in China, where there are several low-cost vendors competing with global

tier I test vendors. Source: Frost & Sullivan

Executive Summary

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2 Portable instruments are expected to make

their way into R&D, with an increase in

features and functionality.

3

Modular instruments such as those based on

PCI eXtensions for Instrumentation (PXI) are

expected to enter field applications due to

their small form factor.

4

Indirect sales channels are preferred as

these instruments require less technical

know-how and also to increase customer

reach.

5 Product differentiation and brand recognition

are important factors for test vendors’

success.

1

Battery-powered instruments are gaining

importance within the overall test and

measurement industry with improvements in

batteries and battery life.

Executive Summary—CEO’s Perspective

Source: Frost & Sullivan

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Market Overview

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Market Overview—Definitions

The portable/handheld test equipment market is segmented into 3 main product segments.

General Purpose Test Equipment:

The products under this segment include oscilloscopes, multimeters, spectrum analyzers,

signal generators, network analyzers, electronic counters, and power meters – USB and

LCR meters.

Electrical Test Equipment:

The products under this product segment include milliohm meters, micro ohm meters,

insulation testers, phase/rotation testers, earth ground testers/earth resistance

testers/ground resistance meters, harmonic/leakage testers, hipot testers,

megohmmeter/insulation testers, earth and receptivity testers, voltmeters, clamp on

ammeters, and thermal Imagers.

Environmental Test Equipment:

The products under this segment include humidity meters, light meters, sound meters,

moisture test meters, water quality meters, and vibration testers.

Source: Frost & Sullivan

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Market Overview—Definitions (continued)

The various geographic regions covered in this study include:

• North America: Canada and the United States.

• Europe: Western, Central, Eastern Europe, and Russia.

• Asia-Pacific: Countries that are on the western border of the Pacific Ocean (including

those on the Indo-Chinese peninsula), the Pacific Islands, and Central Asia.

• Emerging Markets: Central and South America, the Caribbean islands, the Middle

East, and Africa.

The various end users include:

General Purpose Test Equipment – Education, military/government,

broadband/telecommunication, computer design, semiconductors, industrial & automotive,

and others (semiconductor chip manufacturers, medical research, chemical, professional

repair and maintenance services).

Electrical Test Equipment – Medical, military/government, industrial & automotive, and

others (universities and utilities).

Source: Frost & Sullivan

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Market Overview—Definitions (continued)

Environmental Test Equipment:

Light meters – Germicidal light measurement, testing lighting of work places and quality

assurance in manufacture of lamps & light sources.

Sound meters – Production and repetitive testing, noise monitoring, building acoustics,

mapping, automotive & transportation, material testing, and aerospace and structural

dynamics.

Humidity meters and Vibration testers – Agriculture, soil monitoring, geotechnical, pulp &

paper, food industry, and building construction applications.

Moisture meters – concrete monitoring, grain moisture measurement, wood moisture and

non-destructive moisture testing.

Water quality meters – Water quality parameter spot measurements such as temperature,

dissolved oxygen, conductivity, pH, ORP (Redox), depth, and turbidity.

NOTE: The products covered in the portable/handheld test equipment market are used in

installation & maintenance applications. Today, some of these products are being used in

research and development (R&D) as an addendum to the benchtop instruments. Source: Frost & Sullivan

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Is the market growing, how long will it continue to grow, and at what rate?

Which product segments will grow the fastest during the next 7 years?

Which regions show greater revenue potential for handheld/portable test equipment?

How will the structure of the market change with time in terms of form factor? Is the current structure

good for new types of portable test equipment?

Are the products/services offered today meeting customer needs, or is there additional development

needed?

Which of the end-user groups represent most of the growth opportunities?

Market Overview—Key Questions This Study Will Answer

Source: Frost & Sullivan

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External Challenges: Drivers and Restraints—

Total Portable/Handheld Test Equipment Market

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Total Portable/Handheld Test Equipment Market: Key Market Drivers and Restraints, Global, 2013–2019

Economic turmoil in Europe and Japan hinders test

equipment growth

Requirement for highly complex data capture and

analysis hinders entry into R&D

Price pressure lowers sales volume

1–2 Years 3–4 Years 5–7 Years

Growth of LTE boosts market growth

Improvements made in battery technology make

portable instruments more attractive

Integrated test equipment drives market growth

Education sector boosts product demand

Mark

et

Dri

vers

M

ark

et

Restr

ain

ts

Impact: High Medium Low

Drivers and Restraints

Source: Frost & Sullivan

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Europe

The economic

turmoil has

weakened the

growth of

European

market.

India

Educational

institutions are

gaining power

and partnering

with vendors

for research.

Brazil

Energy and

infrastructure

investments are

expected to

stimulate

economic

growth.

North America

Presence of Tier

I vendors and

importance of

quality sustains

market growth. China

Change in

political

leadership is

expected to drive

economic

reforms.

Global Hot Spots

Source: Frost & Sullivan

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General Purpose Test Equipment Segment: Competitive Structure, Global, 2012

Number of Companies in the Market More than 50

Competitive Factors Ease of use, pricing, features, brand recognition

Key End-user Groups Education, broadcast/telecommunication, computer

design/semiconductors/others (medical research, chemical,

professional repair and maintenance services),

military/government, and industrial and automotive

Major Market Participants Fluke, Agilent, Rohde & Schwarz, and Anritsu

Distribution Structure Mostly indirect sales

Competitive Environment

Source: Frost & Sullivan

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Electrical Test Equipment Segment: Competitive Structure, Global, 2012

Number of Companies in the Market More than 100

Competitive Factors Ease of use, price, brand recognition

Key End-user Groups Aerospace, military and defence, medical devices, industrial

and automotive; and others – laboratories, education, and

professional services

Major Market Participants Fluke, Chauvin Arnoux, Extech, and Megger

Distribution Structure Indirect sales

Competitive Environment

Source: Frost & Sullivan

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Environmental Test Equipment Segment: Competitive Structure, Global, 2012

Number of Companies in the Market More than 50

Competitive Factors Ability to operate under harsh conditions, product quality,

price, and ease of use

Key End-user Groups Automotive & transportation; aerospace, military and defence;

material testing (including NDT), and others– construction,

oil & gas, laboratories

Major Market Participants General Electric, Vaisala, AEMC, and Extech

Distribution Structure Indirect sales

Competitive Environment

Source: Frost & Sullivan

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Frost & Sullivan takes no responsibility for any incorrect information supplied to us by

manufacturers or users. Quantitative market information is based primarily on interviews and

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For information regarding permission, write to:

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Legal Disclaimer

19 NC59-30

Appendix

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One of Frost & Sullivan’s core deliverables

is its Market Engineering studies. They

are based on our proprietary Market

Engineering Methodology. This approach,

developed across the 50 years of

experience assessing global markets,

applies engineering rigor to the often

nebulous art of market forecasting and

interpretation.

A detailed description of the methodology

can be found here.

Market Engineering Methodology

Source: Frost & Sullivan

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• World General Purpose Test Equipment Markets

• Asia Pacific General Purpose Test Equipment Markets

• World Oscilloscopes Markets

• Mega Trends to Shape the Future of the Electronics Test and Measurement (T&M)

Industry

• World Signal Generators and Arbitrary Waveform Generators Markets

• High Growth Test and Measurement Opportunity: Modular Instruments

• Asia Pacific Modular Instrumentation Markets

• Distribution and Product Analyses of the General Purpose Test Equipment Market in China

• Distribution and Product Analyses of the General Purpose Test Equipment Market in India

• General Purpose Test Equipment Market in Select Asia Pacific Countries

Additional Sources of Information on Electronic Test

Equipment Market

Source: Frost & Sullivan

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• Agilent Technologies

• Anritsu

• Chauvin Arnoux

• Megger

• Gossen Foto- und Lichtmesstechnik GmBH

• Aspen

• Grainger

• Transcat

• HIOKI E.E. CORPORATION

• IDEAL INDUSTRIES, INC

• Rohde & Schwarz

• Yokogawa Meters & Instruments Corporation

Partial List of Companies Interviewed

Source: Frost & Sullivan

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• Aaronia AG

• Acute Technology Inc.

• Aeroflex Incorporated

• Amprobe

• B&K Precision Corp.

• Chauvin Arnoux

• Chroma Systems Solutions, Inc.

• Digimess Instruments Ltd

• Duncan Instruments Canada Ltd.

• DynamicSignals LLC

• Elmika

• IET Labs, Inc.

• FLIR Commercial Systems

• Flite Electronics International Limited

• Giga-tronics Incorporated

• Good Will Instrument Co., Ltd

• GMC-I Messtechnik GmbH

• General Tools & Instruments

• HIOKI E.E. CORPORATION

• Janatek

• KIKUSUI ELECTRONICS CORPORATION

• KUSAM-MECO

• Link Instruments Inc.

• Megger

• Oscium

• Pico Technology

• Rigol Technologies Inc.

• Signal Hound

• TEGAM Inc.

• Yokogawa Meters & Instruments Corporation

Other Market Participants—General Purpose Test

Equipment Segment

Source: Frost & Sullivan

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• KIKUSUI ELECTRONICS CORPORATION

• KUSAM-MECO

• NEC Avio Infrared Technologies Co. Ltd.

• OMEGA Engineering inc.

• PPM, Inc.

• Precision MASTECH Enterprises Co.

• Seaward

• TES Electrical Electronic Corp.

• TEGAM Inc.

• Test Products International, Inc.

• Weschler Instruments

• Yokogawa Meters & Instruments

Corporation

• Amprobe

• Associated Research, Inc.

• B&K Precision Corp.

• Chroma Systems Solutions, Inc.

• Duncan Instruments Canada Ltd.

• IET Labs, Inc.

• Flite Electronics International Limited

• GMC-I Messtechnik GmbH

• Greenlee Textron Inc.

• HIOKI E.E. CORPORATION

• Hipotronics, Inc.

• Hoyt Electrical Instrument Works Inc.

• IDEAL INDUSTRIES, INC

Other Market Participants—Electrical Test Equipment

Segment

Source: Frost & Sullivan

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• Amprobe

• B&K Precision Corp.

• Central Technology Corp

• Control Company

• CHINO Works America Inc.

• Duncan Instruments Canada Ltd.

• E + E Elektronik Ges.m.b.H

• Fieldpiece Instruments, Inc.

• Fluke Corporation

• Gossen Foto-und-Lichtmesstechnik GmBH

• General Tools & Instruments

• HIOKI E.E. CORPORATION

• Janatek

• KUSAM-MECO

• Megger

• Monarch Instrument

• Omega Engineering

• PROTEK Test and Measurement

• REED Instruments

• Simpson Electric Company

• TEGAM Inc.

• Testo AG

• W.W. Grainger, Inc.

• Yokogawa Meters & Instruments

Corporation

Source: Frost & Sullivan

Other Market Participants—Environment Test Equipment

Segment