Test & Measurement Equipment Market

Mounting EV Testing and Fuel Cell Testing is Creating Growth Opportunities for Test & Measurement Equipment Market

The global test and measurement equipment market is set to enjoy a valuation of US$ 32.3 Billion in 2023 and further expand at a CAGR of 5.7% to reach US$ 56.4 Billion by the end of 2033.

The increasing development in the battery powered devices, electric vehicle production, and the development of 5G infrastructure will stimulate the demand for test & measurement equipment. Whereas, increasing adoption of automation and advanced technology in different industry verticals is paving the way towards the healthy growth of the market by 1.9X over the assessment period.

Report Attributes	Details
Test and Measurement Equipment Market Size (2022A)	US$ 30.8 Billion
Estimated Market Value (2023E)	US$ 32.3 Billion
Forecasted Market Value (2033F)	US$ 56.4 Billion
Global Market Growth Rate (2023-2033)	5.7% CAGR
North America Market Share (2023)	~ 26.7%
Europe Market Growth Rate (2023-2033)	~ 4.9% CAGR
United States Market Growth Rate (2023-2033)	~ 4.9% CAGR
Market Share of Top 3 Countries	~ 65.8%
Key Companies Profiled	Keysight Technologies Fluke Instek Rohde & Schwarz Tektronix Keithley Pico Technology RIGOL Siglent Sorensen TDK-Lambda Teledyne FLIR Vitrek Illinois Tool Works Inc. Shimadzu Corporation Ametek, Inc. Matest S.p.A Admet, Inc. Other Key Players

Sales Analysis of Test and Measurement Equipment (2018-2022) Vs. Market Forecast Outlook (2023-2033)

Global test and measurement equipment has gained significant demand in different industry verticals in the last few years. The market observed growth globally in value of about 2.3% during the historic period (2018-2022), despite the adverse impact of COVID-19 on global sales during 2020. General test and measurement equipment is a key contributor to the overall market development with substantial demand in the manufacturing sector.

During the forecast period, the market is expected to rise with a CAGR of 5.7%. The supportive government norms promoting the 5G network, increasing development of battery-powered devices, and establishment of Industry 4.0 in emerging and developed nations will fuel the demand for test and measurement equipment. Whereas, IT & telecommunication and consumer electronics will be key industries projected to provide consistency in demand over short term period.

In the segment by end-use vertical, IT & telecommunication is projected to rise with the highest CAGR of 6.7% during the forecast period, followed by consumer electronics, discrete manufacturing, and automotive.

• Short Term (2023-2026): The test and measurement equipment market in the defence industry will see opportunities as electronic gadgets are increasingly used on a global scale. During the projected period for the near future, this element is anticipated to steer market expansion towards further incremental $ opportunities.
• Medium Term (2026-2029): Increased use of electric vehicles and significant 5G network development will create growth opportunities for the test and measurement equipment market.
• Long Term (2029-2033): Over the long-term forecast period of 2029 to 2033, investments in product R&D, technology development, and marketing to boost product sales will expand the market growth.

The global test and measurement equipment market historically grew at a CAGR of 2.3% from 2018 to 2022, and Fact.MR, a provider of market research and competitive information, projects that the market will grow at a CAGR of 5.7% from 2023 to 2033.

Market share analysis of test and measurement equipment based on customer type and region is illustrated briefly in the above image. Under the customer type segment, OEMs will dominate with 43.0% market share in 2023.

How Technological Advancements Necessitating Development of High-quality Measurement Equipment?

Technological advancements are a key driving factor for the growth of the test and measurement equipment market. With the development of new and more complex technologies, the need for precise and accurate testing equipment becomes more important. As devices become smaller and more advanced, the margin of error in testing becomes smaller, necessitating higher-quality equipment.

This includes advancements in telecommunications, aerospace, defense, and healthcare, which require specialized testing and measurement equipment. For instance, the growth of the Internet of Things (IoT) has led to the need for testing equipment that can handle large volumes of data and detect defects in connected devices.

Substantial Growth in Development of Electronic Devices Worldwide Will Uplift the Market Growth

The increasing demand for electronics is a significant driving force behind the growth of the test and measurement equipment market. As digitalization continues to advance, electronic devices are becoming increasingly prevalent in our daily lives, which has created a need for reliable and durable high-quality electronic components.

Precise testing and measurement are necessary to ensure that these components meet the required standards of quality and reliability. The following are some of the primary factors contributing to the rise in demand for the test and measurement equipment industry such as product testing, quality control, product development, certification and regulatory compliance and repair & maintenance.

How Global Standardization of Products is Driving the Demand?

The globalization of products has a significant impact on the test and measurement equipment industry, as it creates a need for standardization and quality control across different regions and countries.

When companies manufacture products for the global market, they must ensure that their products meet the regulatory requirements and quality standards imposed by every country they sell to. This requires rigorous testing and measurement of the products, both during the manufacturing process and before they are shipped to the end customer.

Test and measurement equipment plays a critical role in this process, as it allows companies to accurately measure and verify the quality of their products. This includes testing for factors such as reliability, durability, and safety, as well as compliance with local regulations and standards.

What are Limiting Factors Affecting Market Growth?

“High Cost of Test and Measurement Equipment Restricting Product Adoption”

One of the primary challenges faced by the test and measurement equipment industry is the high cost of equipment. The equipment used in testing and measuring various parameters can be expensive, making it difficult for smaller companies to invest in them. Additionally, the cost of maintaining and calibrating the equipment can be high, adding to the overall cost.

Also, companies opting for outsourcing of the testing services leads to additional cost which limits further adoption. Following the global standards and policies for testing makes timely calibration of the equipment mandatory increasing the operational cost. All in all, higher cost involved in developing testing equipment creates barriers for adoption from SMEs.

What Factor Will Create Lucrative Opportunity for the Market?

“Rising Importance of Cybersecurity Fueling Sales of Test and Measurement Equipment”

Cybersecurity is driving demand for efficient test and measurement equipment in several ways. One of the primary reasons is that cybersecurity threats are becoming increasingly sophisticated and frequent, requiring companies and organizations to invest more in testing and measuring their security systems and protocols.

To stay ahead of these threats, companies need to constantly update and improve their security measures. As a result, there is a growing demand for test and measurement equipment that can help companies test and evaluate their cybersecurity systems.

Some examples of test and measurement equipment that are in high demand in the cybersecurity industry include network analysers, protocol analysers, intrusion detection systems, vulnerability scanners, and penetration testing tools. These tools allow companies to test their systems for vulnerabilities and identify any weaknesses that may be exploited by cybercriminals.

Country-wise Insights

Factors Contributing the Demand for Test and Measurement Equipment in the United States

The United States is witnessed to have substantial development in commercializing the 5G network. This is attributed to the increasing adoption of IoTs in various industry verticals and the procurement of advanced technologies.

As 5G network improves the bandwidth and latency reduction and makes smooth processing of advanced tech & IoTs. To support the development of the 5G network the country is witnessing the modernization of outdated regulations established to promote 5G networks, which include key concerns like 5g fund for rural America, speeding the ip transition, and others.

The country has a vast healthcare infrastructure where test equipment is required immensely to have the utmost quality in the diagnosis of diseases and patient care. Moreover, tremendous development in the adoption of connected cars and the establishment of supporting infrastructure to it has leveraged the demand for test and measurement equipment. This equipment helps increase the shelf life, performance, accuracy, and efficiency of devices.

With respect to the aforementioned dynamics, the U.S. test and measurement equipment market would nurture at a compound annual growth rate of 5.7% over the forecast years 2023-2033.

What Are The Key Factors Stimulated The Demand For Test And Measurement Equipment In China?

China holds a substantial share of the manufacturing sector worldwide. With the increasing manufacturing sector, the country is observed the adoption of advanced technologies and promoted Industry 4.0 significantly to the uplift manufacturing sector. As it ensures the quality and reliability of smart manufacturing systems.

The manufacturing of intricate and highly personalized products, a characteristic of Industry 4.0, necessitates a high degree of automation and machine autonomy to manage product differentiation at high volumes. Test and measurement equipment companies are responding to industry demand by adapting their offerings to meet the diverse needs of end-users in the region.

Category-wise Insights

General Test and Measurement Equipment to Exhibit leading Share by Product Type

General test and measurement equipment is predicted to have the leading share of the product type segment. In 2023, the category is projected to have a share of almost 47.9%, due to the rising demand for electronics, automation, and connection across a variety of industries, including automotive, aerospace and defense, telecommunications and others.

Along with these elements, the test and measurement sector is now more crucial than ever due to the growing use of modular equipment and consumer electronics. Engineers must measure current, voltage, and other parameters quickly and accurately to assure quality and dependability as general test and measurement tools become less bulky and stationary and more portable, handheld, and miniaturized.

Owing to which the segment is expected to create absolute dollar opportunity of US$ 24 billion over the assessment period.

Does Electric Vehicle Testing will Uplift the Global Market for Test and Measurement Market?

The demand for test and measurement tools is driven by an increase in the production of electric vehicles around the world and the adoption of cutting-edge technology such as smart connected devices, smart EV charging, self-healing algorithms for EV charging management, and others.

In EV the test and measurement equipment helps in accurately determine the flow of electrical currents and efficient operation of electronic devices installed in the vehicle. Because of this, the market is anticipated to grow 1.7X throughout the forecast period, reaching a market worth of US$ 201.7 million by 2033's end.

Developing economies like India, China, South Korea and others0020are witnessed with prominent adoption of elective vehicles and expected to have significant demand for testing equipment during the forthcoming period.

Competitive Landscape

Prominent test and measurement manufacturers are Keysight Technologies, Fluke, Instek, Rohde & Schwarz, Tektronix, Keithley, Pico Technology, RIGOL, Siglent, Sorensen, TDK-Lambda, Teledyne FLIR, Vitrek, Illinois Tool Works Inc., Shimadzu Corporation, Ametek, Inc., Matest S.p.A, Admet, Inc. and other key players.

The test and measurement equipment market is highly fragmented with the presence of various large and small market players in the industry. With the substantial utility of test and measurement equipment in various industry verticals, these market players are taking strategic moves like product launch and expansion to enhance their footprint in the respective economy and capitalize on large customer base.

For instance :

• In March 2021, The most comprehensive portfolio for fiber-optic testing in the market was expanded by VIAVI Solutions which introduced new fibre test and measurement products. The business offers service providers, colocation and hyperscale data centres, businesses, and contractors new optical power metres, fibre characterization modules, and an improved optical
• In March 2021, Anritsu released the space-saving universal wireless test set, MT8872A, and the TRX Test module, MU887002A, intended to increase the effectiveness of production-line inspections of wireless communication equipment based on 5G.

Fact.MR has provided detailed information about the price points of key manufacturers of test and measurement equipment positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Test and Measurement Equipment Industry Research

• By Product Type :

  • General Test and Measurement
    • Multimeters
    • Borescope
    • Current Testers
    • Meghometer
    • Rheometers & Viscometers
    • Oscilloscopes
    • Other General Test and Measurement Instruments
  • Mechanical Testing Equipment
    • Universal Testing Machine
    • Fatigue Testing Machine
    • Physical Properties Testing Instruments
    • Pressure testing machine
    • Torsion testing machine
    • Creep testing machine
    • Others Mechanical Testing Equipment
  • Software
  • Services

• By Customer Type :

  • OEMs (Product Manufacturers)
  • OES (Suppliers to final product Cos.)
  • Research Lab and Educational Institutions / University
  • Others (Service Providers and MRO centers)

• By End-Use Vertical :

  • Medical & Life Science
  • Automotive
  • Consumer Electronics
  • Aerospace
  • Defense
  • IT & Telecommunication
  • Power Generation
  • Discrete Manufacturing
  • Others

• By Application :

  • Battery Testing
  • Electronic Testing
  • 5 G Testing
  • EV Testing
  • Fuel Cell Testing
  • Power Train Testing
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA