Rapidly Emerging Technology Participants Shake up Competitive Landscape for European Diagnostic Instrumentation

Business Wire, May 8, 2008

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c91213) has announced the addition of Frost & Sullivan's new report: Strategic Analysis of the European Diagnostic Instrumentation Markets to their offering.

This research titled Strategic Analysis of the European Diagnostic Instrumentation Markets provides a detailed strategic analysis of the diagnostic instrumentation market segmented into two product groups, with an emphasis on the characteristics of the market, defining trends by countries/regions and for western Europe. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: diagnostic equipment and exhaust gas analysers.

Market Overview

Positive Diagnosis for the European Diagnostic Equipment Market

Currently, most participants in the European diagnostic instrumentation market, comprising diagnostic equipment and exhaust gas analyser (EGA) manufacturers, are competing to position themselves as reliable partners for end garages - similar to the vehicle manufacturers (VMs)-dealership relationship. Diagnostic manufacturers plan to establish this relationship by developing a common diagnostic platform capable of integrating several functionalities within a single instrument. "The present trend of consolidations within the diagnostic industry provides the necessary competencies to gain this synergy apart from supplying viable geographical market entry options," states the analyst of this research. "In addition, higher regulatory authorities responsible for newer legislation to reduce vehicle emissions are providing the necessary impetus for the growth of diagnostic instruments."

Developments are expected to slow with respect to high-quality and cost-effective diagnostic instruments. "The need to master diagnostic measurement capabilities by using new technologies such as wireless networks and sensing technologies remains one of the key factors required to succeed in the diagnostic equipment business," comments the analyst of this research. "Market participants need to focus on continuing growth in Europe, based on their competency and area of influence, as movements towards establishing test bench competencies by other competitors is relatively low." Competitors need to combine diagnostics and EGA functionalities into a common platform in order to establish a global presence. Franchised service centres provide new marketing opportunities for diagnostic equipment manufacturers to be effective due to their continuous need for software upgrades and updates. Moreover, the ability of end garages and workshops to develop strong customer reach and influence should be leveraged. Interestingly, EGAs are also finding increasing applications in a range of industries including marine, agricultural equipment and aerospace, providing, if necessary, the scope for manufacturers to diversify their product applications. However, movement in this direction is more future-oriented, with manufacturers having a more specialised product approach within their respective domains.

Rapidly Emerging Technology Participants Shake up Competitive Landscape

At present, the European diagnostic equipment market is dominated by six suppliers, namely Robert Bosch-Automotive Aftermarket, Texa Spa, SPX-Technotest, AVL DiTEST, Actia and Snap-on group. The combined market shares of these suppliers account for close to 50 per cent of the overall European diagnostic equipment sales. Robert Bosch-Automotive has emerged as the market leader owing to its strong distribution and spare parts business strategy. In addition, the Bosch brand name is associated with innovation and its strong integrated diagnostic capabilities have resulted in a dedicated customer base. On the other hand, Texa Spa is emerging as a strong contender in the market due to its R&D competencies.

Almost all market participants focusing on Europe consider diagnostic equipment as their core business. Product domains and specialisations such as gas analysers and other testing equipment are considered secondary. Despite this, product expertise rests in the hands of a few competitors that use product innovation capabilities to penetrate new markets. For example, diagnostics contribute more than 70 per cent of the total garage equipment turnover for market participants such as Texa Spa. The situation is similar for other competitors including AVL DiTEST, SPX and Robert Bosch. In terms of complete technical know-how and market leadership, a few participants like Texa Spa, AVL DiTEST and Bosch can be included in that league. Others continue to source technologies from leading suppliers. As a result, the situation is unlikely to change in the coming years, with the same elite set of competitors set to dominate for a few years.

For more information visit http://www.researchandmarkets.com/reports/c91213