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Global Vision for Test and Measurement—The Impact of Evolving Business Models 

  • April 2016
  • -
  • Frost & Sullivan
  • -
  • 117 pages

Summary

Table of Contents

2025 Global Vision for Test and Measurement—The Impact of Evolving Business Models : Advancements in Technology and Changing Business Landscape Drive Industry Transformation

The study focuses on the impacts of three evolving business models—service-based, fee-based, and eCommerce—that test and measurement (T&M) providers will face from 2016. Mega Trends across industry verticals such as automotive, healthcare, aerospace, consumer electronics, communication, and energy and environment lead to the creation of certain factors (enablers) such as connectivity, servicification, software upgrades, and changes in revenue models. The study offers an in-depth understanding of how the enablers drive business model evolution in the T&M industry. To further highlight the transformation, case studies on certain T&M providers have been included.

Business Models in T&M—Service-Based, Fee-Based, eCommerce—An Overview Service-based business models are further split into product as a service (PaaS), data as a service (DaaS), and platform as a service. Each of these models are analyzed and weighed according to their profitability by 2025. It is expected that close to 95% of the T&M providers would have adopted one or more of the service-based models by 2025. The study justifies this by analyzing the penetration of mega trends in the end-user industry verticals and the enablers that were created for each of the verticals. Fee-based business models comprise subscription models: software as a service (SaaS), pay per use, and renting/leasing models.


The use of SaaS model is expected to experience an exponential growth in the coming years due to the emphasis on hardware getting commoditized and the requirement of software upgrades to keep up with test needs. eCommerce models will become well accepted with T&M providers’ single firm independent model and distributors’ public marketplace model experiencing rapid advancements by 2025.

Key Questions This Study Will Answer

- Does the business model play a crucial role in T&M’s evolution?
- Will the business model and technology changes across end-user industries have an impact on T&M?
- What are the critical Mega Trends across end-user industries and how do each of these Mega Trends pave the way for transformation in T&M industry?
- What are the key enablers that are acting as a catalyst for the transformation across the end-user industries which in turn will cause a transformation in the T&M business model?
- What are the critical business model transformations which T&M providers can expect in the future and when should they strategically initiate these shifts?

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