According to Frost & Sullivan's recent report on the European test and measurement instrumentation market, "Trends in Rental and Leasing Services," market participants have generally shown increased interest in rental services to reduce the acquisition and ownership costs associated with test and measurement equipment. Frost & Sullivan believes that rental and leasing services could account for approximately one-third of total market revenue in the test and measurement industry in the future.
“Even so, there is significant room for growth in the rental and leasing market for the test and measurement industry in Europe, which currently has fairly low penetration in most countries,” says Jessy Cavazos, Frost & Sullivan’s Director of the test and measurement industry. “Rentals are a good option for customers with short-term needs, those who can’t afford to purchase test instruments, or those in an industry that is evolving at a faster pace technologically, accelerating instrument obsolescence.”
The largest test and measurement markets in Europe are currently Germany, Russia and the Commonwealth of Independent States (CIS), the UK, France, Scandinavia, Italy, and Spain. From a rental penetration perspective, some of these markets have shown a greater propensity to rent than others. The UK, for example, shows the highest rental penetration in the entire region. The French market also exhibits higher penetration of test equipment rental and leasing services compared 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 recently, 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 has very low rental penetration.
"Other factors to consider when analyzing the European test and measurement rental and leasing market are the major industries in each country and the focus in terms of applications. With certain industries being stronger in specific countries, the end-user dimension is crucial when assessing the growth potential of European markets for rental and leasing services," concludes Ms. Cavazos.
