Government initiatives to promote test equipment market in Russia, CIS

By eGov Innovation Editors | Dec 27, 2011

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 Government and private investments in infrastructure development and services are poised to generate new opportunities for test equipment vendors in Russia and the CIS countries.

New analysis from Frost & Sullivan shows that the markets earned revenue of $194.8 million in 2010 and estimates this to reach $247.3 million in 2015. The research service covers the following products: oscilloscopes, signal generators, spectrum analyzers, multimeters, network analyzers, logic analyzers, power meters, arbitrary waveform generators and electronic counters.

"Investments in infrastructure are rising with constant upgrades and efforts at modernization," said Frost & Sullivan Industry Manager Sujan Sami. "The increase in public-private partnerships (PPP) is set to boost infrastructure development, leading to greater demand for suitable test equipment."

The education and the aerospace and defense (A&D) sectors are major revenue-generating streams. At the same time, growth in several industrial sectors is poised to augment demand for general-purpose test equipment in the near future.

"Russia is the largest country in the world and is also the 9th largest country in terms of population," explained Sami. "This implies a huge consumer base for electronic products that will attract electronic OEMs and create potential for general purpose test equipment vendors."

However, the lack of private capital expenditure threatens to restrain market growth. Poorer economies such as Tajikistan, Armenia, Uzbekistan, Kyrgyzstan and Moldova are mostly dependent on state expenditure for growth. This restricts the adoption of newer technologies, hindering market expansion.

With government policies playing a critical role in the development of countries in the CIS region and in Russia, companies also need to keep a close track of evolving government regulations.

"Focusing on total solutions, rather than just selling test instruments, is the key to achieving market success," concluded Sami. "Moreover, to compete more effectively against regional vendors, companies will need to forge alliances with local channel partners."