Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026

29 Jan 2023

Rapid industrialization, along with significant growth in the electronics industry, represents one of the key factors creating a positive impact on the industry growth. Test and measurement equipment are used for checking defects in high-performance and power-efficient consumer electronics and semiconductors during manufacturing. Consequently, increasing utilization of test and measurement equipment for regular testing and diagnosing any faults in aircraft, helicopters and other machines is also driving the market growth. They are also used for machine control, factory automation and establishing remote sensor connections in the automotive and transportation sectors. Various technological advancements, such as the integration of connected devices with the Internet of Things (IoT) and the development of machine-to-machine (M2M) interaction systems, are acting as other growth-inducing factors. These systems offer portable and embedded testing and measurement solutions with remote troubleshooting capabilities and interactive interfaces. Other factors, including improvements in the networking and communications infrastructure, along with the increasing automation of laboratory instruments, are expected to drive the market further.

Discussing the highest T&M instruments trends & key product technologies that may influence the market growth - the electronic equipment (testgear) trade is ontogeny as ne'er before. Now not restricted to the assembly of such mainstays as ammeters, multi-meters, ohmmeters, & voltmeters, the trade currently includes a large array of merchandise. General Purpose Electronic T&M Instruments embrace Multimeters, Logic Analyzers, Signal Generators (Radio Frequency Signal Generators, Microwave Signal Generators, wave shape Generators), Oscilloscopes (Digital Oscilloscopes, Analog Oscilloscopes, & PC-Based Oscilloscopes), Spectrum Analyzers, Network Analyzers, Extension-Based, & Others. Finish Use Industries area unit Communications, part & Military/Defense, natural philosophy producing, Industrial natural philosophy & Automotive, & Others.

Today’s T&M Trends & Developments

As client natural philosophy devices get smarter, their applications area unit migrating from the private to the work setting. victimisation laptop computers – a similar laptop – reception place of labor (and all points in between) could be a reality of life. However, area unit good phones & tablets taking this to level that might amendment the means within which engineers move with their operating world? Not solely can individuals expect to regulate their heating, TVs, cookery et al with their client devices, they're going to additionally expect to try to to this at work further. Megatrends like connected living, big data, good cities computing can drive the long run of the communications equipment market, in step with Frost & Sullivan, as computer code technologies become additional pervasive & a digitalized world becomes inevitable & the quality of good devices, networks & applications produce the requirement for custom-built testing solutions. Shopping for associate instrument accustomed be simple, in the maximum amount you nominal what you wished & then found instrumentation to satisfy that specification. Obviously, this defines the restrictions of what that instrument is used for, however T&M corporations over more modern years have introduced ways that to form their instruments each cheaper versatile. Instruments thus became upgradeable, or scalable, to stay initial outlay to a minimum, whereas maximising the potential applications for that instrument.

Speedy Growth of affordable, portable, & PC-driven instruments

A new marketplace for take a look at instruments is being created by the separation of associate instrument’s processing/control modules. With the accelerated performance of non-public computers, it additionally has evidenced viable to make PC-driven instruments that interface through high-speed & common platform-interface technologies.

The benefits of PC-driven test-and-measurement instruments, like value, movableness, computer code potential, area unit enticing enough to encourage early technology innovators. Nevertheless new techniques should be accustomed shrink the footprint of such superior natural philosophy with a restricted power budget protection.

New Phase of Test

The world is increasingly software oriented, & the way we interact with devices is changing. Smartphones, set top boxes & even automobiles are now defined by their embedded software. With this evolution, we are challenged to keep up with the pace of innovation & the resulting complexities. Two decades ago, testing a phone meant getting a signal. Today, the design, test & production of a mobile device involve an entire ecosystem of functionality, applications &technology, resulting in a necessarily different approach to test.  Building a test system to solve today’s challenges is no longer a simple problem. Instead, it requires evaluation of expanding test requirements & an architecture that can last over time. It’s important to choose a platform that can harness the technology curve while enabling abstraction & integration. Devices under test (DUTs) are moving away from single purpose, hardware centric entities with limited capability to multipurpose, software-centric entities with endless capability. Why shouldn’t your test system evolve in the same way? Making the switch from traditional instruments with vendor defined functionality to software defined architecture, allows user defined measurements &  analysis in real time.You can even extend this flexibility through the deployment of algorithms to an onboard FPGA for increased instrument performance. With software defined approach, the commercial off the shelf (COTS) technology powering the latest DUTs can power your test system in the same way – optimizing your test architecture for years to come. This transition under way in mobile devices offers insight into an important trend for T&M: the power of the software centric ecosystem. Early mobile telephones were built to make calls first and, later, to send text messages, but the capabilities were defined almost completely by the vendor.  Once the software on these devices was opened up, extended capabilities – ranging from music players to cameras to email – followed quickly. But the effectiveness of the transition was more than just an open software experience. Apple, & later Google, built robust ecosystems around their products & created a community of developers for ‘apps’ that accelerated usefulness.

The inherent openness & community concept, arguably, could have been fostered by traditional mobile phone providers themselves, but it was Apple & Google who shifted the focus from hardware devices to software environments, developing & deploying mobile OSs, as well as hardware to leverage them. By exposing an appropriate level of customization to users & third party developers, they succeeded in changing fundamentally the way consumers view their mobile phones. This same concept is now making an impact on T&M. Communities of developers & integrators, building on standard software platforms, are using commercial off the shelf (COTS) technology to extend the functionality of complex hardware into applications previously impossible. The level of productivity & collaboration delivered by software centric ecosystems will have a profound effect on test system design over the next three to five years.

Industry Viewpoints

Mobile Network Operators (MNO): Managed Services concept is in demand & trend. Most of MNO are using this trend for IT, network related services besides other non-technical services. T&M on rent is other popular trend in seen for last 2-3 years. T&M on rent is good choice for shorter projects/ requirement while buying new T&M is value for longer use. Support of multiple technologies like GSM, CDMA, WiMAX, WCDMA, LTE or WiFion single platform is in demand from industry for T&M industry. Site sharing is other trend which helps to achieve lower CAPEX&OPEX. All in one Box for production testing is other demanding product which saves space, time & cost during production. Field instrument are more rugged no & they support multiple interface & technology, so that engineer do not need to carry multiple instrument.LTE, Cloud Computing, WiFi off load, WLAN, Green telecom, M2M, Connected life style, research toward 5G race are top trends for 2015.

The engineering T&M equipment market is expected to witness a CAGR of 24.5% by end of 2015. Some of the major market drivers include the increasing demand for electronic products & the rising need for T&M equipment for use in semiconductor devices. The high cost of production & increasing competition among vendors are some of the major challenges faced by the market. One of the emerging trends in the Global T&M Equipment market is the miniaturization of T&M equipment. Miniaturized T&M equipment are flexible &   easy to use. The fast growth of the market in the Electronics industry is leading to the development of small-sized electronic devices for which miniaturized T&M equipment are required. For instance, the T&M equipment used in consumer electronics &  other minute components need to be very small in size. Hence, the vendors are moving toward the trend of miniaturization.

The Indian growth story is giving new dimensions to every allied segment requirements. The Telecom, Defence, Automotive, Electronics Manufacturing, Aerospace, Consumer Electronics, contract-manufacturing, R&D, etc. have seen increased allocations in the area of product design / testing / Quality of Service improvement. T&M is a derivative market capitalizing on success of above & plays an important role in every phase of the product life cycle. One of the key beneficiaries of the growth in the Indian industry is Education sector that needs to adapt to new technologies & brace them for the next level. These all have resulted in the spurt in requirements for T&M instruments. Speaking on developments in the industry, there is vast impact of technological changes in T&M instruments by virtue of size, display technology, resolution, measuring frequencies & other features under test/measurement. Integration of more & more test / measurement capabilities in single unit to simplify test process is outcome of such advancement. Advancement in digital convergence has made it possible to monitor & control T&M instruments remotely too. Technological advancement in every related feature shall have an impact on this industry. We need to have close watch on future trends & brace ourselves with frequent Changes. We feel the thrust on digital convergence would have larger impact on future T&M products.

Rental – an Attractive Alternative to keep pace with Latest Demand

Test equipment rental is now seeing considerable traction across India, given the rapid acceleration of the technology sector here. As a result we see a lot of potential for further growth during 2015. Next generation technologies are emerging rapidly & new industry standards are being adopted. This means that key test requirements are continuing to evolve. With everything in a constant state of flux, there is a risk that purchased equipment will quickly become outdated & effectively made redundant. Rental therefore presents an attractive alternative to direct purchase, as the customer is not tied down to any item of equipment long term – they can change it as their test requirements change. Highlighting trends –Deployment of Fibre to the Home (FTTH) is becoming more widespread across Europe  & here in India the fibre market is also growing at pace. In response to this we are investing heavily in advanced optical equipment, such as OTDRs, so that we can meet the needs of our customer base as this particular market develops further. In addition, the rollout of next generation mobile networks is calling for employment of new types of instrumentation. For example, GPS antenna alignment tools are becoming a key part of mobile site installation. Through this operators can ensure there are no holes in network coverage, around the borders between cells, due to antennas being badly positioned. This means that network quality is upheld & prevents drop calls occurring that will frustrate subscribers.

Speaking on key drivers, the principle driver that we see characterizing the current Indian market is demand for higher quality equipment. People are becoming more aware that the test hardware they use must be serviced & recalibrated on a regular basis. They are moving away from older, less well looked after equipment &   looking to gain access to up to date models via rental. As well as the financial advantages that rental offers when it comes to sourcing quality equipment, there are logistical advantages too. Procedures in place so that equipment is available to cover the items being repaired, thereby safeguarding against loss of revenue through equipment downtime. In India the need to get sophisticated test equipment from a reliable & dependable source is greater now than ever. As a result rental companies that have good quality equipment, flexible rental options & an expansive portfolio of products will be well positioned to capitalize on the opportunities that lie ahead in the coming year. Government push for Make in India, new manufacturing establishment (SEZ), new spectrum auction, broadband for all, Information highways (building backbone network for high speed data usages), Upgradation of existing telecom network & roll out of LTE technology, local application content on smartphone are key drivers. Government planning to test all imported telecom gear. EMF Radiation measurement is other demand in T&M industry. Transport technology is updating to 100G from 1G/10G.Anritsu has been providing Telecom T&M solution to Indian market since long. We were biggest Optical T&M supplies to BSNL during initial fiber deployment phase in India. Anritsu products are known for its quality & high reliability in India. Anritsu works closely with all stakeholders in telecom eco system & preferred T&M partner.

According to the new market research report by Industry ARC titled the market is expected to grow from $2.5 billion in 2017 to $3.7 billion by 2023, at a CAGR of 28.6%. Asia-Pacific continues to expand its market share & growth during 2018-2023.Since China has an enhanced information communication technology supply chain, which includes semiconductors & related equipment. Therefore, a huge demand for electrical test equipment from this sector has accelerated the growth of the market. A major change has been figured out where Asia-Pacific experienced an increase of 3% in revenue in the existing market. America is still the leading market for T&M, as it holds the highest share of 45% since 2015. High frequency of manufacturing, adoption of smartphones by the people & adoption of data connections are other driving factors accelerating the growth of the market in America. Selected Industrial Vertical Analysis done in the full Report: Globally, there has been a consistent rise in mobile penetration from the past decade. The telecommunications sector is one of the fastest growing industries across the globe. Trends including mobile broadband, IoT, cloud computing & Big Data management are currently propelling the growth of the telecom industry. As wireless technology play a major role in the aerospace & defense market, demand for spectrum analyzers & signal generators with higher frequencies & wider bandwidths are estimated to increase over the forecast period.

Followed by semiconductor & electronics industry & the medical industry, demand for electronic devices has been increasing which is simultaneously increasing the adoption of T&M by electronics OEMs in recent years. In the automated test equipment, new energy vehicles such as electric & hybrid vehicles & soon have been estimated to strengthen their footprint, which stimulates the automotive test equipment utilization, &  there is a scope of embedding these systems in automobiles, thus increasing the adoption of T&M. 

High manufacturing of electronics parts such as displays, server/storage equipment, electronic measurement, electron-medical equipment & others across the globe have escalated the demand of the wireless test equipment market.
National Instruments debuted a 5G New Radio (NR), sub-6GHz emulator. The company assures that the technology will reduce time-to-market &lower costs of 5G testing, a new engineering till date.  Increasing internet penetration, evolution of communication technologies to support high data rates, low latency rate & so on, has elevated the use of consumer electronics. To meet the growing demands of the consumer electronics, OEMs have been focusing on T&M as a part of R&D equipment to sustain in a competitive environment & to increase the market revenue that has significantly propelled the T&M market revenue in the recent past.

T&M equipment:Raising the quality bar

With increasing usage of electronics (across industries) & stringent standards for quality, safety, & environmental, the demand for T&M (T&M) equipment is expected to rise in near future.  T&M (T&M) equipment finds application in the initial design, development, verification, maintenance, & repair of various electronic& mechanical products.  Electronics industry is primarily considered to the growth driver of T&M equipment in the country. T&M equipment are used for testing & measuring in electronic devices such as cellphones, digital cameras, MP3 players, solar inverters, etc. According to TechNavio, the T&M equipment market in India is expected to grow at a CAGR of 13.24% over the period 2015-2019.T&M equipment market in India can be segmented into three product segments general purpose, wireless communications & fiber optic. The current market for general-purpose T&M equipment is estimated at worth over $ 200 million. Some of the leading vendors of T&M equipment are Agilent Technologies, Anritsu, JDS Uniphase, Rohde & Schwarz & Spirent Communications.  Some of the mechanical products that have the use of T&M equipment include turbines, automotive car suspensions, & aircraft propulsion systems. Depending on end-user requirements, T&M equipment use can vary from simple to complex automated devices. T&M equipment enhance the efficiency, reliability, & accuracy of electronic/mechanical products.

Market opportunities

Some of the major drivers for T&M equipment industry include the increasing usage of electronics (across industries); growing need to validate the performance of equipment;&stringent standards for quality, safety  & environmental. In addition, the government initiatives such as Make in India, Smart Cities, indigenizing defense equipment manufacturing, Digital India, etc. are also pushing the demand for T&M equipment. Sectors such as telecom, defense, automotive, electronics, aerospace, etc. are increasing allocations in the areas of product design, testing & quality of service improvement. T&M industry is capitalizing on this trend as it plays an important role in every phase of the product life cycle. “The growing demand for bandwidth, multiple devices & increasingly complex network architecture will continue fueling growth in the T&M market. The key driving factors would be the explosion in telecom & data services in the aerospace/defense sector. The sector may witness the emergence of specialized companies & also consolidation. This will segregate pure-play hardware & T&M system companies. According to the Tech Navio report, one of the main drivers in this market is the increase in R&D investment. Advantages such as high growth potential & relatively low manufacturing costs help to bring more technological innovations through continuous R&D.

Megatrends such as connected living, big data, smart cities & wearable computing are driving the communications test equipment market. In a digitalized world, the complexity of smart devices, networks & applications are creating the need for customized testing & monitoring solutions.  One key trend in the market is the need for compatibility of test equipment. The need for compatibility of test equipment is the main focus of T&M equipment vendors when developing new products. The continuously evolving technology has made the product lifecycle of T&M equipment short, thereby requiring new T&M equipment to test new technology. This has created a need for T&M vendors to develop new equipment capable of testing new technologies&is also compatible with old technologies.

Telecom:The prime growth engine

Testing & measurement requirements have changed over time with the evolving standards in the telecom industry. Telecom industry has witnessed unprecedented growth in the past two decades & with an increasing subscriber base, the deployment of next-generation technologies &   unprecedented data traffic, network complexity has also increased. This market is mainly driven by two considerations – performance &    conformance of the equipment & systems to industry standards. While performance specifications are tested as per the manufacturer’s references, conformance parameters are evaluated to meet the concerned industry standards. The key growth drivers of the T&M industry are the introduction of new telecom technologies, explosion of data/video services, roll-out of 4G services, new quality of service (QoS) demands resulting from the increase in call drops, conformity to radiation specifications, spectrum management, etc. In September 2017, the Department of Telecommunications issued a notification mandating equipment makers to get their products tested & certified from the agency or body authorized by the DoT before selling or importing them in India. This order comes into effect from October 1, 2018. For this, the government plans to set up labs & testing centres which will go a long way in addressing the problems faced by operators while simultaneously opening up new opportunities for T&M players in the country.

Rentals on rise

One of the key challenges faced by industry is price sensitivity of consumers buying T&M equipment. Customers in the market are very price conscious & tend to purchase low-priced T&M equipment at the expense of quality & added features. Renting equipment on rent can be a viable solution to this problem. The inherent characteristic of the T&M market is such that the evolving telecom standards render T&M equipment obsolete quickly. Next generation technologies are emerging rapidly & new industry standards are being adopted. This means that key test requirements are continuing to evolve. With everything in a constant state of flux, there is a risk that purchased equipment will quickly become outdated & effectively made redundant. Therefore, rental is an attractive alternative to direct purchase, as the customer is not tied down to any item of equipment for long time & can opt for new equipment depending upon their changing test requirements. Experts believe that T&M on rent is good option for shorter projects, while buying new T&M will be cost-effective for longer use. In the last few years, the rental market has gained traction as it allows the customer flexibility to switch to the latest equipment without incurring significant investment. As a result rental companies that have good quality equipment, flexible rental options & an expansive portfolio of products are in position to capitalize on the opportunities that lie ahead in the coming year.

Miniaturization:The game changer

Thanks to the growing demand for portable devices & connected environment due the Internet of Things (IoT) consumers are looking to adopt on-site testing. This is also leading to miniaturizing of T&M equipment. Miniaturized T&M equipment are flexible & easy to use. The fast growth of the market in the electronics industry is leading to the development of small-sized electronic devices for which miniaturized T&M equipment are required. For instance, the T&M equipment used in consumer electronics & other minute components need to be very small in size. Hence, the vendors are moving toward the trend of miniaturization.

Digital convergence

The rapid evolution towards higher frequencies & wider modulation bandwidth, coupled with the advent of technologies such as 5G, is creating growth opportunities for advanced T&M equipment. According to Ghosh, 5G has the potential to revolutionize many industries such as telecommunications, automotive, energy, health care & more. The technology is expected to be several times faster than 4G&would provide a backdrop for the billions of devices to be connected to the internet as it would boost M2M communication & the internet of things (IoT) market. The demand for communication T&M solutions is on a rise on account of growing bandwidth demand & introduction of next generation cellular & wireless technologies. In addition, increased R&D spending in telecommunication sector coupled with growth in mobile phone market have fueled market momentum. Advancements in digital convergence have made it possible to monitor & control T&M instruments remotely. Devices under test are moving away from single purpose, hardware centric entities with limited capability to multipurpose, software-centric entities with endless capability. T&M equipment industry is following the same track. Today, T&M market is increasingly adopting a software-defined approach towards instrumentation, which allows expeditious upgradation of solutions as per changing network & technology requirements. Over the next three to five years, the level of productivity & collaboration delivered by software centric ecosystems will have a profound effect on test system design.

India Test and Measurement industry is witnessing a good growth. The key growth driver is the largest end-user in telecommunications industry, as this sector has grown both terrestrially and via satellites. The sophistication here is high and it covers a wide range of techniques and measurement topologies. Telecommunication networks are exceedingly dependent on the functionality of electronic test and measurement instruments, as the minutest distortion of signals can result in failure to communicate. Establishment of new networks need to upgrade existing communication infrastructure are the major demand drivers for electronic test and measurement instruments market. The next large market is education and training. Engineering education is growing and so is the market. Fast obsolescence is another reason for market growth. T&M products are also needed in applications such as defense and industrial automation. The Indian GP test equipment market is characterized by a mix of indigenous participants and multinationals. Agilent Technologies India Pvt. Ltd., Rhode & Schwarz, Anritsu, Tektronix, Inc., and Fluke are some of the major multinationals in the market. Indian manufacturers such as KusamMeco, Aplab Limited, Scientech Technologies Pvt. Ltd., and Scientific Mes-Technik Pvt. Ltd. also compete in the GP market. Indian suppliers focus on low frequency products and target educational institutes, whereas large multinational foreign suppliers focus on high-frequency products targeted at research institutes and the defence segment. With continuous change in the communication and electronics market, buttressed by the wireless revolution, OEMs are under constant pressure to offer turnkey test solutions for the constantly evolving technologies. In order to cater to the evolving demands of the end-user companies, test and measurement majors focus on R&D to constantly develop newer and advanced test equipment.  With all of the above trends and development and approach setting in, the test and measurement market in India is all set to boom. There are areas of   interest for every player in the market, and the global as well as domestic demand for test, measurement, and instrumentation is set to grow significantly in coming years.

The Future of Test and Measurement Equipment

Research and development of software upgrades and high-end communication technologies require better flexibility, higher measurement speeds, precise functionality, and effective real-time testing. These requirements can be met with the development of better testing and measurement equipment.

The T&M market is expected to experience growth as industries such as IoT, big data analytics and 5G technologies grow. High-speed digital standards, power applications, new software models, the evolution of software-as-a-service (SaaS) and cloud licensing are expected to revolutionize the trends in testing and measurement. The future of the test and measurement industry features a plethora of growth opportunities that market participants must keep their eye on.

The emergence of IoT, modular instrumentation and other complex technologies is expected to drive the growth of the T&M industry in the future due to the need for cost-effectiveness of the devices, reduced development times and greater performance efficiency.