checking the pulse of the global oscilloscopes market
DESCRIPTION
The oscilloscopes market, the largest product category in the general purpose test equipment industry, has been challenged in 2012. This comes despite positive trends surrounding electronics and their increasing complexity that necessitate new capabilities in oscilloscopes. Will more positive economic conditions change the fate of this market in 2013 and beyond?TRANSCRIPT
Checking the Pulse of the Global Oscilloscope Checking the Pulse of the Global Oscilloscope MarketMarket
Product Innovation Drives Market SharesProduct Innovation Drives Market Shares
Jessy Cavazos, Industry Director
Test & Measurement
Frost & SullivanFrost & Sullivan
October 16th, 2013
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
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Today’s Presenter
Jessy Cavazos, Industry Director
Frost & Sullivan
Follow me on:
@FrostJessy
www.linkedin.com/in/jessycavazos/
2
Deep industry knowledge in a broad range of sectors, leveraging long-standing
working relationships with leading industry participants’ senior executives across the
globe.
• Expertise in Test & Measurement (Electronic Test Equipment, Communications Test,
Mechanical Test, Analytical Instrumentation, Dimensional Metrology), Semiconductors, and
Sensors.
• 10+ years of research and consulting fulfillment and management expertise
www.linkedin.com/in/jessycavazos/
Focus Points
• Overview of the Global Oscilloscope Market
• Mega Trends
• Major Drivers & Restraints
• Growth Prospects
• Bandwidth Perspectives
• A Word on Resolution
3
• A Word on Resolution
• Competitive Landscape
• Key Conclusions
• Q&A
Mega Trends
Smart Smart Smart Smart asasasas the New Greenthe New Greenthe New Greenthe New GreenConnectivity and Connectivity and Connectivity and Connectivity and
ConvergenceConvergenceConvergenceConvergence
4
Social TrendsSocial TrendsSocial TrendsSocial TrendsBricks and ClicksBricks and ClicksBricks and ClicksBricks and Clicks
Beyond BRIC: The Next Beyond BRIC: The Next Beyond BRIC: The Next Beyond BRIC: The Next
Game ChangersGame ChangersGame ChangersGame Changers
Major Drivers
Oscilloscopes Market: Key Market Drivers, Global, 2013-2019
1-2 years 3-5 years 6-10 years
Growing number and intelligence of electronic devices
Increasing bandwidth
Mark
et
Dri
vers
5
Continued improvements on the user
interface and integration of other
capabilities in oscilloscopes
Modular instrumentation
Mark
et
Dri
vers
Impact: High Medium Low Source: Frost & Sullivan analysis.
Major Restraints
Oscilloscopes Market: Key Market Restraints, Global, 2013-2019
1-2 years 3-5 years 6-10 years
Economic uncertainty
Competition
Mark
et
Dri
vers
6
Competition
Future-proof solutions
Capacity in 1-2 GHz segment
Mark
et
Dri
vers
Impact: High Medium Low Source: Frost & Sullivan analysis.
Growth Prospects
• The total oscilloscope market is valued at $1.11 billion in 2012,
with Asia Pacific representing the largest share of the total
market revenues.
1,800
2,000
Total Oscilloscope Market: Revenue ForecastWorld, 2009-2019
CAGR: 7.2%
Total Oscilloscope Market: Revenue by Geographic Region, World,
2012
7
0
200
400
600
800
1,000
1,200
1,400
1,600
2012 2019
Revenue 1106.4 1798.2
Reven
ue (
$ M
illi
on
)
YearNorth America Europe Asia Pacific Rest of the World
44.0
46.0
48.0
50.0
52.0
54.0
56.0
Purchasers’ Manufacturing Index (PMI), Select European Countries, May 2012-September 2013
Germany
France
United Kigndom
Spain
Italy
Russia
Poland
Growth Prospects (Contd.)
8
May-12
Jun-12
Jul-12
Aug-12
Sep-12
12-Oct
12-Nov
12-Dec
13-Jan
13-Feb
13-Mar
Apr-13
May-13
Jun-13
13-Jul
Aug-13
Sep-13
Germany 45.2 45.0 43.0 44.7 47.4 46.0 46.8 46.0 49.8 50.3 49.0 48.1 49.4 48.6 50.7 51.1 51.8
France 44.7 45.2 43.6 46.0 42.7 43.7 44.5 44.6 42.9 43.2 44.0 44.4 46.4 48.4 49.7 49.7 49.8
United Kigndom 45.9 48.6 45.2 49.6 48.4 47.5 49.2 51.2 50.5 47.9 48.6 49.8 51.3 52.5 54.6 57.2 56.7
Spain 42.0 41.1 42.3 44.0 44.6 43.5 45.3 44.6 46.1 46.8 44.2 44.7 48.1 50.0 49.8 51.1 50.7
Italy 44.8 44.6 44.3 43.6 45.7 45.5 45.1 46.7 47.8 45.8 44.5 45.5 47.3 49.1 50.4 51.3 50.8
Russia 53.2 51.0 52.0 51.0 52.4 52.9 52.2 50.0 52.0 52.0 50.8 50.6 50.4 51.7 49.2 49.4 49.4
Poland 48.9 48.0 49.7 48.3 47.0 47.3 48.2 48.5 48.6 48.9 48.0 46.9 48.0 49.3 51.1 52.6 53.1
Czech Republic 47.6 49.4 49.5 48.7 48.0 47.2 48.2 46.0 48.3 49.9 49.1 49.5 50.1 51.0 52.0 53.9 53.4
Hungary 52.2 52.8 51.9 49.5 52.5 49.9 52.3 48.9 55.9 54.0 55.7 51.7 47.1 50.8 49.0 51.8 54.5
40.0
42.0
Poland
Czech Republic
Hungary
Bandwidth Perspectives
Real-time Oscilloscopes Market: Bandwidth Coverage of Select Market Participants (Global), 2013
Rohde & Schwarz
Yokogawa
RIGOL
Fluke
9
Source: Frost & Sullivan.
6 M
Hz
20 M
Hz
25 M
Hz
40 M
Hz
50 M
Hz
60 M
Hz
70 M
Hz
100 M
Hz
125 M
hz
150 M
Hz
200 M
Hz
250 M
Hz
300 M
Hz
350 M
Hz
400 M
Hz
500 M
Hz
600 M
Hz
1 G
Hz
1.5
GH
z
2 G
Hz
2.5
GH
z
3 G
Hz
3.5
GH
z
4 G
Hz
5 G
Hz
6 G
Hz
8 G
Hz
12 G
Hz
12.5
GH
z
13 G
Hz
16 G
Hz
20 G
Hz
25 G
Hz
28 G
Hz
30 G
Hz
32 G
Hz
33 G
Hz
35 G
Hz
36 G
Hz
45 G
Hz
50 G
Hz
60 G
Hz
63 G
Hz
65 G
Hz
Tektronix
Agilent
Technologies
Teledyne LeCroy
National
Instruments
A Word on Resolution
Several techniques exist to reach higher resolution with oscilloscopes
Averaging over Multiple
Averaging over Multiple Acquisitions
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Higher ResolutionAveraging over Multiple
Points in a Single Acquisition
Higher-bit ADC
Resolution
Bandwidth
Poll Question
• Who do you believe has the best growth prospects in the
oscilloscopes market for the next 3 years:
• Tektronix
• Agilent Technologies
• Teledyne LeCroy
Rohde & Schwarz
11
• Rohde & Schwarz
• Other
Competitive LandscapeR
ate
, 2009-2
012
National InstrumentsAgilent Technologies
Competitor Growth AnalysisTotal Oscilloscope Market: Global, 2009 and 2012
Rohde & Schwarz
“Innovation distinguishes between a (growth) leader and a follower” -Steve Jobs
12
Note: Bubble size represents relative market share in the total oscilloscope market. The base year is 2012. Profitability is at the segment level for Agilent (Electronic
Measurement Group), Tektronix (Danaher T&M) and Yokogawa (T&M) and at the company level for National Instruments and Teledyne LeCroy.
Source: Frost & Sullivan analysis.
Gro
wth
Rate
, 2009
Tektronix
Revenue ($ Million)
Teledyne LeCroy
< 0% 20% – 25% > 55%Unknown
Profitability
Yokogawa
RIGOL Technologies
Key Conclusions/What to Watch Out For
2
Customer focus on scalability increases the life of oscilloscopes. More
of the revenues of OEMs will come from upgrades (bandwidth, etc.) in the
future. Will this be enough to fuel growth?
3
Users demand greater user experience with oscilloscopes. There will be
greater adoption of consumer-like capabilities in such instruments as
1
Capabilities in oscilloscopes are increasing drastically to become morecomprehensive measurement tools, merging domains. This spells
opportunity for some, but danger for others.
13
3greater adoption of consumer-like capabilities in such instruments as
well as a need for interaction with wearable computer devices. Are
OEMs ready to take on the technical challenges this implies?
4
websites?
Online channels are expected to become more prominent as a
distribution means for oscilloscopes. Are OEMs partnering with distributors
on the forefront of this trend and what are they doing with their own
websites?
5
Product innovation has fuelled the market share growth of several
such focus?
Product innovation has fuelled the market share growth of several
players over the past 2-3 years. Are these OEMs willing/able to maintain
such focus?
Next Steps
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For Additional Information
Jeannette Garcia
Corporate Communications
Measurement & Instrumentation
(210) 477-8427
Jessy Cavazos
Industry Director
Test & Measurement
(325) 695-6332
17
Kiran Unni
Research Manager
Measurement & Instrumentation
(210) 247-2495
Shekar Gopalan
Business Unit Leader
Measurement & Instrumentation
(425) 898-8115