

For the purpose of analysis, Databeans segments the test and measurement equipment market into the following areas: Telecom, Electrical Testers, Handheld Instruments, and Automatic Test Equipment (ATE). In order to avoid confusion, note that this segmentation does not include companies like KLA-Tencor, which specializes in process and yield management, nor does it include companies such as Thermo Electron, which manufactures electronic measurement equipment, but focuses much more on areas outside of manufacturing test, such as scientific research, for example.
Databeans estimates that the worldwide test equipment market will be valued at $19.5 billion for 2008, including telecom, general-purpose, and handheld test, with the ATE segment itself constituting about $3.7 billion of that revenue.
The test and measurement semiconductor market tends to represent a boom/bust model, meaning that there are years of tremendous growth, followed by a downturn, as spending on capital equipment in the semiconductor industry tends to happen by most suppliers at the same time.
Databeans anticipates 11.5 percent revenue growth for next year, as test equipment semiconductors are heading into slightly higher growth relative to this year. Revenue is expected to exceed $10 billion, and then will likely grow to a value of about $13.4 billion within the next five years, assuming a growth rate of 7.7 percent on average for the forecast period.