As technology evolves, companies that rent out test and measurement equipment are having to extend the range of services they offer...
The past few years have been challenging for companies operating in the test and measurement market, but for those delivering rental and leasing services, economic and business challenges have provided fertile ground, as more customers become aware of the benefits they can offer.
Traditionally, the renting or leasing of test equipment was suitable for customers with short-term requirements, or who didn't have the budget to buy test instruments. Today, companies in industries that are evolving rapidly, are turning to rental specialists, especially when instrument obsolescence is becoming increasingly important.
Research from Frost and Sullivan suggests the share of rental and leasing services in the test and measurement industry is growing strongly and currently accounts for a third of the total market revenues.
While different industry sectors have different requirements, demand for rental and leasing has tended to be strongest in the telecommunications market, boosted by the deployment of 4G networks fibre optic networks moving to 40G and from growing investment in mmWave and 5G technologies.
Whatever the market, those supplying test and measurement equipment have to ensure their portfolio meets changing customer requirements, and, as technology evolves more quickly, companies faced with budgetary constraints are having to think more creatively about how they acquire test equipment - does it address the needs of their latest development project, does its support the latest standards and in the light of rapid developments driven by the Internet of Things, does it offer sufficient performance?
The functionality and cost of software is another challenge that needs to be addressed. As the use and type of software increases, so variations in the type of test equipment required have exploded. In addition, equipment is becoming more configurable, adding further pressures when it comes to providing the correct test services and support.
For rental and leasing companies, the key challenge is not only to be able to provide the right equipment, but also the most up-to-date devices that meet changing testing requirements.
Traditionally, the renting or leasing of test equipment was suitable for customers with short-term requirements, or who didn't have the budget to buy test instruments. Today, companies in industries that are evolving rapidly, are turning to rental specialists, especially when instrument obsolescence is becoming increasingly important.
Research from Frost and Sullivan suggests the share of rental and leasing services in the test and measurement industry is growing strongly and currently accounts for a third of the total market revenues.
While different industry sectors have different requirements, demand for rental and leasing has tended to be strongest in the telecommunications market, boosted by the deployment of 4G networks fibre optic networks moving to 40G and from growing investment in mmWave and 5G technologies.
Whatever the market, those supplying test and measurement equipment have to ensure their portfolio meets changing customer requirements, and, as technology evolves more quickly, companies faced with budgetary constraints are having to think more creatively about how they acquire test equipment - does it address the needs of their latest development project, does its support the latest standards and in the light of rapid developments driven by the Internet of Things, does it offer sufficient performance?
The functionality and cost of software is another challenge that needs to be addressed. As the use and type of software increases, so variations in the type of test equipment required have exploded. In addition, equipment is becoming more configurable, adding further pressures when it comes to providing the correct test services and support.
For rental and leasing companies, the key challenge is not only to be able to provide the right equipment, but also the most up-to-date devices that meet changing testing requirements.
A Competitive Market
While Aspen Electronics primarily sells Test Equipment, it also rents specific lines. "While the market remains flat overall, it is very competitive." said Managing Director, Howard Venning. "That's a given when you consider there are now 26 companies supplying oscilloscopes into the UK market and the routes to market are changing rapidly. Keysight has announced, for example, that along with traditional distributors like RS and Farnell, they will now be using Amazon to source it's equipment. "A lot of Test and Measurement equipment is now little more than a commodity, which means cost is the priority for design engineers. If the test and measurement market is reach saturation point, I would expect the cost of test equipment to come down even further."
"Buyers," according to Venning, "want value for money and are looking to acquire multiple capabilities in each item of equipment. More and more, we are seeing instruments being consolidated".
The challenge for rental companies is that they are obliged to carry an extensive portfolio of equipment to match the changing needs of their customers.
"To be a one-stop-shop, companies need to buy a lot of equipment." suggested Venning. "Companies are having to sink serious amounts of money into providing a 'complete' service to meet the demands of customers in a rapidly changing market. That's a challenge for any company, no matter their size."
Beyond the financial costs and whether renting or buying test equipment is in their best interests, the speed at which technology is evolving is a challenge and, large or small, companies will need to invest carefully in as much test equipment as their budget can reasonably allow.
While Aspen Electronics primarily sells Test Equipment, it also rents specific lines. "While the market remains flat overall, it is very competitive." said Managing Director, Howard Venning. "That's a given when you consider there are now 26 companies supplying oscilloscopes into the UK market and the routes to market are changing rapidly. Keysight has announced, for example, that along with traditional distributors like RS and Farnell, they will now be using Amazon to source it's equipment. "A lot of Test and Measurement equipment is now little more than a commodity, which means cost is the priority for design engineers. If the test and measurement market is reach saturation point, I would expect the cost of test equipment to come down even further."
"Buyers," according to Venning, "want value for money and are looking to acquire multiple capabilities in each item of equipment. More and more, we are seeing instruments being consolidated".
The challenge for rental companies is that they are obliged to carry an extensive portfolio of equipment to match the changing needs of their customers.
"To be a one-stop-shop, companies need to buy a lot of equipment." suggested Venning. "Companies are having to sink serious amounts of money into providing a 'complete' service to meet the demands of customers in a rapidly changing market. That's a challenge for any company, no matter their size."
Beyond the financial costs and whether renting or buying test equipment is in their best interests, the speed at which technology is evolving is a challenge and, large or small, companies will need to invest carefully in as much test equipment as their budget can reasonably allow.