Acceptance of USB power meters continues to grow

Several leading companies in the power measurement market made the decision to focus on USB power meters.

By Mariano Kimbara, Measurement & Instrumentation Research Analyst, Frost & Sullivan, www.frost.com -- Test & Measurement World, 2/1/2011 12:00:00 AM

In the past, traditional power meters were the de facto standard for performing power measurements. In market terms, power meters are a mature and stable segment. With capital expenditure being a major concern for many companies, however, end users are requesting more cost-effective alternatives, and USB power meters have made significant inroads in the market. The lower cost of USB power meters compared to traditional devices plus their ease of use and portability drive demand for such instruments.

Although holding a smaller market share than traditional power meters in 2010, USB power meters are expected to see higher growth in the next few years. (Figures are rounded, the base year is 2010.) SIDEBAR Photovoltaic market to see sunny 2011 Read past "Market Trends" columns. Read more from the February 2011 issue.

There is definitely a trend toward the use of more USB-based technology. Several leading companies in this market, such as Anritsu and Rohde & Schwarz, made the decision to focus on USB power meters. But the huge existing installed base of traditional power meters is projected to delay the growth in the USB power meter market in the short and medium terms.

With $77.4 million in revenues, traditional power meters represented the majority of the total market revenues for all types of power meters in 2010, a 75.2% revenue market share, and companies such as Rohde & Schwarz currently witness nearly as much revenue from traditional power meters as from USB power meters. Yet, the traditional power meter segment is a declining market, as projected revenues are expected to fall to $72.6 million in 2017.

The trend is shifting in favor of USB power meters. USB power meters have been undergoing increasing growth with revenues reaching $25.5 million in 2010. It is estimated that increasing revenue growth rates will translate into sizable revenues of $43.1 million by 2017, or 37.3% of the total market revenues.

Further analysis performed on the market in 2010 indicates that 70% of the revenues from USB power meters were generated from the communications end-user segment, and the other 30% came from the aerospace and defense industry. The market share of aerospace and defense, however, is expected to increase over the forecast period (2011 to 2017). This is mainly due to capital expenditure from governments.

The defense sector is expected to play a key role in enhancing the market share of USB power meters in the future. Moreover, the market is seeing increased adoption of higher-frequency and higher-speed measurements in aerospace radar signal applications that will be key drivers for USB power meters in the forecast period. The use of USB power meters is likely to accelerate, due to their ability to provide precision and affordability, which address end-user demands more effectively than their traditional counterparts.

Photovoltaic market to see sunny 2011 Global PV (photovoltaic) solar installations in 2011 will rise by 39.3% on the strength of Italian and US demand, with growth during the year limited only by reductions in government incentives in certain European countries, according to iSuppli. ISuppli reported that growth in PV solar installations in 2011 will cool significantly from the 120.5% increase the market saw in 2010, but the organization noted that worldwide installations of renewable solar energy systems this year will still increase at a healthy rate, as they will reach 22.2 GW, up from 16 GW in 2010. The market research firm reported that Germany will continue to be the world's largest PV market this year with an estimated 9.4 GW worth of installations. Italy will be second, iSuppli said, noting that the country represents an accelerating market that promises one of the world's highest internal rates of return. Indeed, the firm said it expects solar installations in Italy this year will double, growing a full 100% to 3.9 GW, up from 1.95 GW in 2010; in comparison, Germany should have a 19.8% expansion. ISupply expects the US to come in third with 2.1 GW worth of PV installations. The firm cautioned that with federal incentives less likely to be renewed in the near term following a shift to a more conservative US Congress, power now will reside more with individual states to carry out these initiatives. Suzanne Deffree, Managing Editor, News, EDN