Frost & Sullivan (F&S) finds in its latest study
after recession, the world oscilloscopes market underwent
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
declined. Frost & Sullivan finds this market earned
revenues of $1,152.3 million in 2010 and estimates this
to reach only $1,372.1 million in 2014.
The highlights shared by F&S include:
1. Customization is highly prevalent in this high-end market,
with companies increasingly introducing solutions
that enable engineers to customize and perform advanced
analysis of analogue and mixed
2. Success of digital and software-driven oscilloscopes
is making analogue oscilloscopes of less use. Digital
and software-driven oscilloscopes have the potential to
replace analogue equivalents in a wide
number of applications.
3. 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.
4. 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
5. With the rising need for higher bandwidth, test vendors
are 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.
6. The market was characterized by a spate of product launches
by major vendors in 2009.
String of comments from Prathima Bommakanti, F&S Research
"Product introductions have been one of the key strategies
adopted by vendors to sustain growth in this competitive
"Vendors consistently reinvested in R&D to keep
pace with end users' technological advancements, introducing
high-end solutions in 2009 and 2010."
"Although the technologies related to oscilloscopes
are well established, efforts are still being made to enhance
and launch novel products,"
"Most suppliers maintain ongoing programs of research
and development to remain competitive."
"The drop in demand from end users either stalled or
postponed a significant number of product sales, this reduced
the demand for oscilloscopes to unprecedented low levels."
"During 2009, the global economic conditions created
substantial pricing pressures on vendors, reducing their
profit margins and revenue growth, with the competitive
landscape and maturity of the market remaining the same,
the impact of this restraint is anticipated to be high over
the short term."
"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, this is enabling manufacturers to differentiate
themselves from their competitors and allowing premium pricing."