Poised at a CAGR of 3.9 percent over the next five years, the largest overall test and measurement equipment market shall remain North America, with the highest CAGR coming from the APAC region.
In the grand tradition of kicking off a new year with predictions, a few recent analyst reports offer new forecasts for the test market in the upcoming years, from electromagnetic compatibility testing to the overall market.
The overall test and measurement equipment market is expected to grow from USD 25.7 billion in 2018 to USD 32.3 billion by 2024, at a CAGR of 3.9 percent, according to ReportLinker. The market is growing due to the increasing demand for this equipment in end-use sectors, such as automotive & transportation, aerospace & defense, IT & telecommunications, education & government, semiconductor & electronics, industrial, and healthcare. The test and measurement equipment market is expected to grow at the highest CAGR in the healthcare sector. Key drivers being development of new healthcare equipment, patient-monitoring systems, and personal emergency reporting systems.
The general purpose test equipment segment includes oscilloscopes, signal generators, digital multimeters, logic analyzers, spectrum analyzers, bit error rate tester (BERT), network analyzers, power meters, electronic counters, modular instrumentation, automated test equipment (ATE), and power supplies. The characteristics of the equipment include large size, bulky displays, slightly complicated control systems, and customer user interfaces.
This scenario is expected to change to an extent, owing to the demand for small-sized tools and integration of various test and measurement equipment into one offering.
Most of the test and measurement equipment now offers high bandwidth, greater accuracy, and higher resolution than that in the earlier equipment. Some of the prominent applications for equipment under this category are IT & telecommunications, healthcare, automotive, and industrial sectors.
The test and measurement equipment market, by geography, has been broadly classified into North America, Europe, APAC, and RoW. In terms of value, North America is estimated to account for the largest share of the market in 2018 owing to the fact that a majority of the leading industry players have a presence in this region.
The market in APAC is expected to grow at the highest CAGR between 2018 and 2024. The governments of Asian countries, such as Japan, China, and India are undertaking initiatives to encourage industries to establish manufacturing and R&D facilities in their countries.
For instance, the Indian government started the Make in India program to increase foreign investments and businesses in India. Initiatives like these are expected to boost the test and measurement equipment market.
EMC test equipment market
The global electromagnetic compatibility (EMC) test equipment market size will grow close to USD 627 million during 2018-2022, according to TechNavio.
The augmented production of smartphones is one of the key factors expected to propel the EMC test equipment market’s growth in the forthcoming years. With the continuous increase in the export of electronic goods from economies such as Japan, Singapore, and China, the electronics industry has been witnessing rapid growth in recent years. Furthermore, the rising sales of smartphones is also likely to boost the EMC test equipment demand in the long run. The use of the internet through the smartphones has increased considerably in the emerging economies of the APAC through emerging technologies including the LTE, 4G, and 5G technologies.
Consequently, these technologies need to be tested with the help of devices including the EMC test equipment, resulting in the market to register a CAGR of close to 7 percent during the period.
The APAC region will hold the largest EMC test equipment market share during the period. Owing to the continuously expanding end-user industries in the emerging economies of the region, the adoption of EMC test equipment will increase considerably in the next few years.
The automotive end-user segment will account for the highest EMC test equipment market share during the period.
Ethernet test equipment market
The global Ethernet test equipment market is expected to post a CAGR of over 11 percent during the period 2018-2022, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the rising demand for high-speed Ethernet. Ethernet was originally used for LAN, as a result, it was made to usually handle the smaller bandwidth. However, with the rise in adoption of Ethernet in different applications, the demand for larger bandwidth and test equipment that can handle high-speed Ethernet networks has increased.
PoE is a technology that enables a system to safely transmit electrical power along with data to remote devices. PoE is designed so that Ethernet data and power signals do not interfere with each other. Transmitting power and data through a single network connection cuts installation cost, which eliminates the need to run a separate Alternating Current (AC) power source.
The 10 Gbe segment held the largest market share in 2017, accounting for nearly 56 percent of the market. This product segment is expected to dominate the global market throughout the forecast period.
The Americas led the market in 2017 with a market share of nearly 39 percent. This region is expected to dominate the market through 2022, however, there will be a decrease in its market share.