The synthetic instrumentation test equipment market, now focused in the defense and aerospace industry, has the potential to reach $500 million by 2013, according to a new Frost & Sullivan report.
Although the synthetic instrumentation (SI) test equipment market is still in the early stages of development, it has a huge potential for market growth as more commercial end users become aware of its benefits, according to new analysis released Tuesday.
For 2006, the SI market had revenue of between $50 and $80 million, and is forecasted to be at about $500 million in 2013, according to Frost & Sullivan's "World Synthetic Instrumentation Test Equipment Market" report.
So far, synthetic instrumentation test equipment has found applications in the defense and aerospace industry, but as awareness levels increase and the price-to-performance ratio improves, the SI market has the potential for substantial growth, said Frost & Sullivan Research analysts S. Vidyasankar and Mark Holler.
The benefits of SI test systems, including speed, rapid reconfiguration and increased longevity, make them ideal for commerical use. Individual pieces of an SI system can be easily optimized, for greater throughput, and SI instruments can be customized to fit any production line. This is especially important for industries where technology changes quickly, such as communications, automotive and consumer electronics, the report noted.
But the high cost of a complete SI solution, which can range from $200,000 to $700,000, depending on its features and application, is seen as a deterrant to other users who might be interested in these systems.
"The lack of competition in the SI test equipment market is serving as a hindrance to its acceptance in the commercial market," explain Holler and Vidyasankar. "The awareness level in the commercial industry also needs to increase for SI to realize its potential."
Frost & Sullivan's report suggests that SI manufacturers who want to attract commercial customers must work on developing affordable SI solutions that are targeted specifically at commercial applications. As commercial awareness levels grow, more manufacturers will enter the market and the increased competition will eventually drive down the cost of SI test systems, which in turn will increase demand for SI products.