Modular instruments market to cross $1 billion mark by 2017

The compound annual growth rate from 2010 to 2017 is predicted to be 12.2%.

Jessy Cavazos, Industry Director, Measurement & Instrumentation, Frost & Sullivan -- Test & Measurement World, 8/1/2011 12:00:00 AM

The world market for modular instrumentation totaled $524.3 million in 2010, growing 17.1% over the previous year. Factors expected to drive market growth going forward include customers’ increased focus on lowering the cost of test, the advantage of open standards that permit the mixing and matching of instruments, and the increased capabilities and scalability of modular instruments. Other key factors include the increased number of automated applications as well as the backing of leading manufacturers such as Agilent Technologies.

Challenges to the growth of the market include customers’ greater familiarity with traditional instruments and concerns over defense budgets. Moreover, despite their increased capabilities, modular instruments cannot address all measurement needs.

The compound annual growth rate from 2010 to 2017 is predicted to be 12.2%. In 2017, the market revenues are expected to cross the $1 billion mark and reach $1.172 billion.

The growth varies significantly in the VXI, PXI/PXI Express, and AXIe market segments. VXI is in the twilight of its life cycle and its sales have slowed, while AXIe is just getting started. Due to its size and growth, PXI/PXI Express is the major force in the modular instruments market.

“The increasing complexity of devices under test, combined with cost and time pressures, is making engineers reconsider their test strategies. This is evidenced by many making the switch from traditional rack-and-stack instruments to software-defined, PXI modular solutions,” said Matthew Friedman, senior product manager for automated test at National Instruments.

Manufacturers also anticipate growth in the market for preconfigured test systems. “While facing time constraints, customers like the idea of systems being built on standards. PXI, with its broad portfolio of product offerings and increasing performance, offers an excellent platform for a range of ATE [automated test equipment] applications,” said Michael Dewey, senior product marketing manager at Geotest—Marvin Test Systems.

At Frost & Sullivan, our market research has found an increased use of modular instruments in R&D applications (especially for design validation and verification), a growing RF market for PXI, and a growing semiconductor market for PXI and AXIe. In addition, the move to serial switch technology has created convergence opportunities among the VXI, PXIe, and AXIe platforms, and VXI vendors such as VTI, EADS, and Bustec are experiencing increased traction for their LXI offerings. T&MW

Electronics supply chain to recover from Japan disaster in Q3 With some companies having already recovered from the Japanese earthquake, the entire electronics industry is expected to complete its rebound from the disaster by the end of the third quarter, according to new research from IHS iSuppli. Electronics companies with operations near the epicenter of the quake that had suffered building and equipment damage are expected to restore full shipments by early September, six months after the quake, which occurred on March 11, 2011. The restoration will coincide with the peak season for electronics and semiconductor sales in the third quarter. “In the history of the electronics supply chain, nothing has had such a broad impact as the Japan earthquake, tsunami, and nuclear disaster,” said Dale Ford, senior VP for semiconductor market intelligence at IHS. “The worldwide repercussions of the catastrophe illustrated the global and interconnected nature of the electronics industry, with the impact of the disaster reverberating through the materials, components, and equipment segments of the supply chain.” He added that even the semiconductor companies suffering the most direct damage will resume full production near the end of the third quarter. The duration of production disruptions have varied depending on a facility’s distance from the earthquake epicenter. Affected companies that were farthest from the epicenter took only one to two weeks to restore production, while companies closest to the disaster could take as long as four to six months to return to normal—depending on their response to the disaster. www.isuppli.com.