Frequent readers of my blog know that I am bullish on modular instruments, such as PXI or AXIe. This column has pointed out the many benefits modular instrumentation brings- higher speed, smaller size, flexibility, all leading to a lower cost of test. Combine that with industry dynamics that couple Porter’s 5 forces with Nobel Laureate John Forbes Nash’s game theory mathematics, and you have the making of a disruptive change in the marketplace. PXI, in particular, is destined to grow big. But how big?
Along comes Frost & Sullivan with their PXI market forecast. And it is stunning. They predict PXI to achieve $1.75B in annual sales by 2020, up from $563M in 2013. That’s an aggregate growth rate of over 17%. Not bad for an industry that has an overall secular growth rate of 3 percent.
I spoke with the author of the report, Jessy Cavazos. She describes the five major forces causing the disruption. Read my analysis of the study here.