Key Highlights

• The testing and measurement equipment market was valued at USD 34.8 billion in 2023 and is projected to reach USD 47.9 billion by 2030, growing at a compound annual growth rate (CAGR) of over 4.5%.

• Rapid industrial expansion, particularly within the electronics sector in emerging economies, is fueling the demand for testing and measurement equipment.

• This equipment is crucial for detecting defects in high-performance consumer electronics used in wireless communication, optical communication, and microwave applications.

• As electronic devices become smaller but more advanced in wireless capabilities, safety and quality testing have become essential stages in manufacturing.

• The global adoption of wireless technologies such as Bluetooth, GPS, and Wi-Fi is enhancing connectivity among businesses, governments, and individuals.

• The growing integration of wireless technologies across sectors like aerospace, automotive, healthcare, and telecommunications is driving the need for robust testing solutions.

• The rise in electric vehicle adoption worldwide is increasing the demand for testing equipment, as comprehensive testing is required for each vehicle before launch.

• Key components of electric vehicles, including the motor, on-board charger, and battery, require performance verification, along with related systems like back-office systems, telematics modules, and charging stations.

Market Insights

• The Asia-Pacific (APAC) region is expected to experience the highest CAGR of 5.2% in the coming years due to a surge in internet users, the emergence of semiconductor and automotive firms, a booming IT sector, increased presence of industry players, and high-capacity manufacturing facilities.

• In 2023, the General Purpose Test Equipment (GPTE) category was the largest segment, accounting for approximately 60% of the market. This dominance is attributed to the increased adoption of 5G networks, which require GPTE for measuring frequency, wattage, voltage, and other parameters of electronic devices.

• The telecom sector's growing investments, including substantial funding for 4G services in India, are supporting the expansion of the GPTE category.

• Calibration services are expected to become the largest industry segment in the future, as they are essential for maintaining product precision and standardization, ensuring reliable benchmarks and results.

• The healthcare sector is anticipated to grow at the highest CAGR of 5.6% due to the emphasis on developing new medical equipment, which must be rigorously tested to prevent performance failures and serious consequences.

• Technological advancements in healthcare, such as wearable devices like smartwatches, are enabling real-time health monitoring and proactive treatment, further driving the demand for testing equipment.

• While established companies dominate the testing and measurement equipment industry, emerging opportunities in areas like electric vehicle testing are likely to attract new entrants.

Source: P&S Intelligence