March 2004
The 2003 secondary market for used test and
measurement (T&M) instruments, not including automated test
equipment, is estimated to be $1 billion, according to a survey
by Frost & Sullivan1. The survey indicates that approximately
60 to 65 percent of the market is in the U.S., with the remainder
split evenly between Europe, and Asia and Japan. Of the $1 billion
total market, Agilent estimates that Agilent-branded products
constitute 60 to 75 percent of the market, or approximately
$600 to $750 million. The market share estimate is based on
interviews with the top five used equipment suppliers.
Used T&M equipment is available to end-users through a variety
of channels, including:
- Original equipment manufacturers, such as Agilent, who
sell reconditioned versions of their new products.
- Distributors, who choose to sell both new and used equipment
to maximize selling opportunities to their customer base.
- Rental companies, who sell-off products from their T&M
rental inventory when the income stream from renting those
products declines.
- Companies that focus exclusively on selling used equipment.
Such companies fall into two broad categories:
- companies that carry inventory, and
- companies that act as a broker between a buyer and a
seller, carrying minimal inventory.
- Auctions, most notably eBay, in which multiple end users
place bids on a particular piece of test equipment.
While many companies offer used products "as-is,"
others only offer instruments that have been refurbished and
recalibrated.
In December 2003, Agilent completed a survey of 246 used equipment
buyers, with the following results:
- Sixty-seven percent of respondents indicated they had purchased
used equipment in the past 12 months, and 34 percent indicated
they were frequent buyers of used test equipment.
- While two-thirds of those surveyed indicated that they
believe buying used equipment is a manageable risk, 52 percent
expressed a concern about being "burned," and 55
percent believe there is significant risk in buying used equipment
over $10,000 in price.
- While price is a primary reason for 70 percent of those
buying used instruments, only 13 percent indicated they base
their purchase decision solely on price. The other 87 percent
indicated they also consider the supplier's reputation and
track record on quality and responsiveness.
Information about Agilent CertiPrime and Agilent Advantage Assurance,
Agilent's low-cost, low-risk purchasing programs for pre-owned
equipment, is available at www.agilent.com/find/used.
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1) Frost & Sullivan, "Strategic
Analysis of the World Used Test and Measurement Equipment
Market," 2001
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