New analysis from Frost & Sullivan, Global Test, Measurement, and Instrumentation Market, has found that the market earned revenues of $3.18 billion in 2014 and estimates this to reach $3.87 billion in 2019 at a compound annual growth rate of 4%.
“Modularity is a key trend in any technologically-evolving industry and A&D is no exception,” said Frost & Sullivan measurement & instrumentation industry analyst, Prathima Bommakanti. “It is a major aspect of aircraft design – components are in the form of separate modules, which are then integrated in the total engine system. Modular components are preferred as they offer scalability and flexibility. This, however, will reduce the cost of tests.”
With strict defence budgets, A&D participants are also less likely to invest in new capital equipment. Along with economic uncertainty and pricing pressure, these factors can negatively affect the growth of the global test, measurement and instrumentation market. Small players will be hit hard as global customers stay conservative and opt for bigger, well-established test equipment vendors.
“Further, widespread use and decreasing prices of electronics mean that end users continually demand attractively-priced software and hardware despite the enhanced performance of products,” noted Bommakanti. “Customers also want more extensive services and support from test and measurement equipment manufacturers.”
Focus on massive upgrades to existing systems and select new installations to improve high throughput connectivity will, nevertheless, create opportunities for testing, instrumentation and measurement equipment vendors that offer products with competitive price-performance attributes.