F&S Reports on Used T&M Gear

European used test and measurement equipment market is poised for growth, says Frost & Sullivan

January 19, 2006

2 Min Read

LONDON -- With the economic slowdown in Europe, customers in the automotive, aerospace and defence, electronics and telecommunication industries are growing aware of the benefits of purchasing test and measurement equipment from the secondary market. Hence, as customers are increasingly investing in good-quality used equipment purchased at a fraction of the price of new equipment, the European used test and measurement equipment market is poised for growth.

In addition, aerospace and defence companies are anticipated to deploy used equipment to replace failed equipment in their test systems due to the ease of ensuring system compatibility. Moreover, the recent bomb blasts in London have created a greater need for security in Europe, which is likely to further increase the applications of used equipment in the aerospace and defence industry.

Currently, the market remains highly fragmented, with a number of local participants, brokers, original equipment manufacturers (OEMs), traders and re-sellers catering to customers' demands. At the same time, the market will benefit by OEMs striving to provide warranty and terms similar to those offered with the purchase of new test and measurement equipment. "The entry of OEMs in the market has created a new benchmark with respect to quality checks and warranty terms", notes Ms. Prathima Bommakanti, Research Analyst at Frost & Sullivan (http://TestandMeasurement.frost.com)

Further, with growing opportunities in the automotive, electronic and telecommunication industries in different Asian regions, industry participants are also eager to establish a global presence by targeting Asian customers.

On the other hand, as the supply of used test and measurement equipment has not been sufficient to meet existing demand in the market, ensuring equipment availability remains a challenge. Also, the presence of brokers in the market who act as an interface between buyers and sellers has led to a lack of transparency and this too poses a challenge to market growth.

"In this context, the market will benefit if manufacturers implement initiatives to ensure transparency in their offerings, thereby increasing reliability", says Ms. Bommakanti. "Moreover, providing value-added services such as calibration certificates, free software and guarantees/warranties, will enable market participants to win the confidence of customers."

Frost & Sullivan

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