IN MY OPINION

Evaluating Our Industry’s Health Requires a Broad Perspective
By John Farley, Director of Marketing, Pasternack Enterprises

As most RF and microwave companies are privately held and industry analysts rarely track sales of microwave components other than semiconductors and interconnects, determining the health of an industry as diverse as ours is extremely difficult.
Read More...

MILITARY MICROWAVE DIGEST


MMD March 2014
New Military Microwave Digest

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Sage Millimeter

Hand-Flex™ Coaxial Cable
Covering DC to 12.5 GHz, this 8” coaxial cable, 141-8SMNB+, has a bulkhead Female Type-N connector at one end and SMA-Male at the other. Features include low loss, excellent return loss, hand formable, and an 8mm bend radius for tight installations.
Mini-Circuits

Phase Trimmer Series
This new phase trimmer series is designed for RF applications where phase match between two cables is needed for proper system performance. Phase trimmers, offered from DC to 50 GHz, will give an accurate phase adjustment over a specified frequency range.
RLC Electronics

Planar Monolithics Industries
Model PTRAN-100M18G-SFB-3UVPX-MAH is a transceiver covering the frequency range of 100 MHz to 18 GHz. The transceiver fits into a 3U Open VPX form factor utilizing the high speed VITA 67 RF connector.
Planar Monolithics Industries

SMT High-Power Attenuators
Now available with full design support capabilities are three new SMT high-power attenuators from Anaren. These 30 to 50W devices are high-performance, high-power chip attenuators covering DC to 3.0 GHz and feature high return loss and small footprints.
Richardson RFPD

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August 2013

EMC Test Equipment and Services Market – Another Opportunity in China
By Prathima Bommakanti, Industry Analyst Test and Measurement, Frost & Sullivan

Globalization paves the way for end-user industries, including military, to expand their operations beyond mature markets and take advantage of low labour costs, strong economic growth, and the rise in population that demands infrastructure developments in emerging markets.

China is currently one of the fastest growing nations in the world – if not the fastest. Despite economic uncertainties, China’s huge domestic market, rapid industrial development, and Government’s encouragement towards following regulations/standards are factors that have helped it weather the storm to a certain extent. Alongside its national growth, China’s EMC test equipment and services market has been steadily gaining prominence fuelled by rising demand from end-user industries such aerospace and defence, telecommunication, automotive, consumer and industrial electronics, information technology and others.

Key Drivers Impacting Market Growth Regulations Drive Demand
The Chinese government started the China Compulsory Certification (CCC) system at the end of 2001. This system is the statutory, compulsory, safety certification system for electrical and electronic products and EMC compliance. China’s Standardization Law encourages the administration office to use international advanced standards as a reference when preparing China’s EMC compliance standards.

The Chinese government has been implementing EMC standards in both the civilian and military areas. The enforcement of regulations and standards is expected to boost the growth of the EMC test equipment and service business in China.

Figure 1: EMC Test Equipment and Services Market: Revenue Forecast, Global, 2009, 2011, 2015

Service Requirements
While China is a low-cost economy with end users basing purchase decisions mostly on prices offered, another criterion that is rising in importance is the need for services. End users no longer expect just the product, but an array of services along with it. The increasing need for services can be attributed to the evolving end user technologies and the need for high-technology products, which require sufficient after-sales and technical support.

Customers are seeking testing solutions to meet EMC inspection standards. Therefore, a number of third-party testing and certification laboratories have been established in China and are providing testing services to customers, which is expected to accelerate the growth of the EMC testing services market.

Laboratories Set Ups
Enforcement of EMC regulations increases customers’ need for technical solutions to EMC issues from test laboratories. A number of third-party testing and certification laboratories have been established in China and are providing testing services to customers. Based on the requirements, customers approach any one of these categories: comprehensive testing laboratories for statutory test qualifications, medium-scale, in-house laboratories that have specific test functions and solutions, or professional rectification laboratories for professional product rectification plans or technical amendment advice. At present, there are over 120 EMC testing laboratories that have passed national CNAS certification. Many of them have passed military DILAC certification as well.

Is the Market Growing? – Challenges

Perception of Services as a Cost Rather Than an Investment
There is still a perception among customers that maintenance is a cost and that service activity associated with maintaining will not deliver value. Management personnel usually adopt a run-to-failure approach where failures happen before taking any remedial action.

Convincing the management and higher level personnel of organizations of the value proposition of service programs has been a constant concern for the service vendors. However, initiatives taken by vendors to increase awareness about the benefits of EMC test services is expected to reduce the impact of this restraint in the long term of the forecast period.

Lack of Customer Loyalty
A key challenge for vendors offering EMC test equipment products in China is the lack of customer loyalty, which restricts market growth. Increasing price sensitivity influences the choice of suppliers. Customers, including multinational companies with production bases in China, are increasingly seeking low-cost substitutes and demanding a high return on investment (ROI). Customer engagement and value creation are essential for market participant to maintain/gain share in this competitive Chinese market.

Market Size
The overall Chinese EMC test equipment and services market generated $645.0 million in 2011, an increase of 9.6 percent from 2010. The market revenue is expected to reach $1,307.6 million in 2018, at a compound annual growth rate (CAGR) of 10.6 percent from 2011 to 2018.
Figure 1 highlights the revenue forecast for the total Chinese EMC test equipment and services market.

The EMC test equipment and services market has grown rapidly over the past few years in China due to the development of regulations and standards. As technology evolves, EMC quality, safety, and environmental regulations and industrial standards are expected to expand throughout the forecast period, which is likely to be a strong market driver.

Figure 2 highlights the revenue forecast revenue split for EMC test equipment and services market in 2011.

Figure 2: EMC Test Equipment and Services Market: Percent Sales Breakdown

Competitive Landscape
The EMC test equipment market is dominated by Rohde & Schwarz followed by Teseq and Agilent Technologies. Key local vendors include Shanxi Hitech Electronic Co., Ltd; Jiangsu WEMC Technology Co., Ltd; Hangzhou Everfine Instrument Co., Ltd; and Kehuan Century Electronics Co., Ltd

The services market is dominated by Intertek followed by TUV SUD. The services market contains around 120 players. There is intense competition and these companies are trying to identify their core competencies and differentiate themselves from others. They typically have specific customers and their geographic coverage is regional.

Conclusion
It goes without saying that EMC test equipment and services has indeed found adequate market in China, albeit in the aerospace, military and enterprise segments.

The impact of the above-mentioned drivers on the market is expected to be strong, resulting in increased revenues in the future. Improving economic conditions, increased consumer spending, military spend, as well as growing IT and telecom markets are set to propel the EMC test and services market growth.

Frost & Sullivan

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