However, the reduction of capital expenditure by certain key end users has forced market participants to reduce prices to ensure that they retain unit sales. While this has had an adverse impact on revenues, the high manufacturing costs and the requirement for substantial R&D investment are also restricting the entry of new participants, thereby restraining overall market growth.
"Another significant challenge that market participants are likely to face is the increasing requirement to meet the varying needs of a diverse range of end-user industries," says Koundinya. "A maturing market has made it imperative for companies to diversify and develop products that cater to emerging end users and suit their particular needs."
To address these challenges, vendors need to develop technologically advanced equipment that cater to the requirements of a broad range of new end users. Ease of use is also likely to be critical along with customization to ensure maximum value for the end consumer. In all, companies will have to proactively monitor the changing requirements of customers in various end-user groups, identify opportunities for technological innovation and ensure sufficient product differentiation over those offered by their competitors.
