Europe demonstrates a great interest in rental services for test & measurement market
The largest test and measurement equipment markets in Europe currently are in Germany, Russia and CIS, UK, France, Scandinavia, Italy and Spain, finds Frost & Sullivan
Over the past couple of years, the share of Europe in the electronic test equipment market has reduced, as key markets in the region continued to face significant economic challenges. However, these challenges have turned out to be a growth driver for the rental and leasing services market, as customers’ awareness about the availability and benefits of such services has increased.
According to the recent Frost & Sullivan Market Insight, Test & Measurement Market in Europe: Trends in Rental and Leasing Services, market participants in general have shown a greater interest in rental services to reduce acquisition and ownership costs associated with test and measurement equipment. Frost & Sullivan believes that the share of rental and leasing services in the test and measurement industry could represent close to a third of the total market revenues in the future.
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“Still, there is significant room for growth for the rental and leasing services market in the test and measurement industry in Europe with penetration currently fairly low in most countries”, notes Frost & Sullivan Test & Measurement Industry Director Jessy Cavazos. “Rentals are a good fit for customers who have short requirements, cannot afford buying the test instruments, or are in an industry evolving at a fast pace from a technological standpoint accelerating instrument obsolescence”.
The largest test and measurement equipment markets in Europe currently are Germany, Russia and Commonwealth of Independent States (CIS) countries, the United Kingdom, France, Scandinavia, Italy, and Spain. From a rental penetration standpoint, some of these markets have showcased a higher propensity to rent than others. The United Kingdom, for example, displays the highest rental penetration across the region. The French market also exhibits a higher penetration of rental and leasing services for test equipment in comparison to other countries in the region. However, it is dominated by a couple of large companies. Spain and Italy have been high-growth markets for participants in recent times due to the economic conditions in these countries, which are driving demand for rental services.
From these two perspectives, the ultimate target for market participants is Germany, which stands as the largest market for test and measurement equipment in Europe but features extremely low rental penetration.
“Other factors to take into consideration when analysing the European test and measurement market for rental and leasing services are the prominent industries in each country and the focus in terms of applications. With certain industries stronger in specific countries, the end-user dimension is critical when evaluating the growth potential of European markets for rental and leasing services”, concludes Ms. Cavazos.