Modular Instruments Market

The modular instruments market was valued at USD 1.12 billion in 2017 and is expected to reach USD 2.11 billion by 2023, at a CAGR of 9.6% during the forecast period. The base year considered for the study is 2017 and the forecast period is from 2018 to 2023.

Market Dynamics

Increased demand for deployment of LTE from telecommunications sector

The demand for wireless technologies is fueled by developments in the wireless communications industry, such as long-term evolution (LTE), increased adoption of smart devices, higher mobility, and the explosive growth of mobile data traffic. Despite lesser power requirements, newly evolving smart devices transmit large amounts of rich data that demand latency and responsiveness of LTE networks.

The need for accuracy and the drive to deliver best possible results to customers have led to the creation of new modular instruments. In the communication and networking sector, an orbital shift from providing primarily voice-based services to offering integrated voice, video, and data services has necessitated the need for solutions to test performance and capacity of undergirding networks. The transition to fourth-generation (4G) network, with advanced modulation and antenna techniques, has improved services and quality. Ongoing R&D activities in cellular technologies such as for LTE, long term evolution advanced (LTE-A), and wired technologies, such as Ethernet and fiber optics, are the major factors driving this market.

Deployment of LTE is providing substantial opportunities for modular instruments manufacturers to capitalize upon. In order to achieve this, huge and technologically more advanced infrastructure is required; this is eventually expected to increase the use of modular instruments for testing LTE gateways and access points, especially in the wireless communication industry.

Objectives of the Study:

• To describe the modular instruments market segmented based on platform type, application, vertical, and geography
• To estimate and forecast market size, in terms of value, with respect to 4 major regions—North America, Europe, Asia Pacific  (APAC), and Rest of the World (RoW) 
• To provide detailed information regarding the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
• To analyze micromarkets with respect to individual growth trends, prospects, and contribution to the overall market
• To analyze opportunities for various stakeholders by identifying high-growth segments of the market
• To strategically profile key players and comprehensively analyze their market positions, in terms of their market rankings and core competencies, and to analyze the competitive landscape across the ecosystem

Research Methodology:

This research study involves systematically gathering, recording, and analyzing data pertaining to customers, competitors, technology, and market trends in the modular instruments market. The research study on the market is a result of thorough secondary and primary research, followed by various data triangulation methods and proprietary market estimation models. The idea is to enable companies to learn about current and potential customers and demand in the market, and also to make them aware about their competitors and respective business strategies.

Various secondary sources such as annual reports, investor presentations, directories, and databases (Hoovers, Bloomberg Businessweek, Factiva, and OneSource) have been referred to for identifying and collecting pertinent information for an extensive technical, market-oriented, and commercial study of the modular instruments market. Key market players have been identified through secondary research, and they have been ranked based on both primary and secondary research. Primary sources mainly comprise experts from core and related industries, along with preferred suppliers, manufacturers, technology developers, alliances, standards, and certification organizations relevant to different parts of the industry’s value chain. In-depth interviews with various primary respondents, including key industry participants, subject matter experts (SMEs), C-level executives, and consultants, have been conducted to obtain and verify critical qualitative and quantitative information and assess prospects. The breakdown of the profiles of primaries has been depicted in the following figure:

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This report provides valuable insights on the ecosystem of the modular instruments market. Keysight Technologies (US), National Instruments (US), Fortive Corporation (US), Viavi Solutions (US), Astronics Corporation (US), Teledyne Technologies (US) (Teledyne Lecroy (Germany)), Rohde & Schwarz (Germany), Ametek (VTI Instruments) (US), Teradyne (US), and Pickering Interfaces (UK) are some of the leading players in the market.

Some of the other prominent players in the market include Giga-tronics (US), Elma Electronic (Switzerland), Asis Pro (Israel), Guzik technical Enterprises (US), Test Evolution Corporation (US), Adlink Technology (Taiwan), Chroma ATE (Taiwan), GOEPEL Electronic (Germany), Marvin Test Solutions (US), and Bustec (UK).

Key Questions

• How much growth is expected from different platform types of modular instruments and what would be their impact on different applications/industry?
• Which are the top applications/verticals in market to invest in and what are the untapped opportunities?
• Who are the major current and potential competitors in the market and what are their top priorities, strategies, and developments?

Key Target Audience:

• Research organizations
• Communication service providers (CSPS), mobile network operators (MNOs), and network service providers
• Antenna manufacturers and consumer electronics chip manufacturers
• Network installation and maintenance service providers, wireless service providers, cable providers
• ODM and OEM technologies solution providers
• Governments, financial institutions, and investor communities
• Consultants, channel partners, distributors, and resellers of equipment
• Analysts and strategic business planners 
• Technology standard organizations, investors, developers, forums, alliances, and associations
• Software and support service providers
• End users industries

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Scope of the Report

The study answers several questions for the target audience; this primarily includes the market segments to focus on over the next two to five years for prioritizing efforts and investments. The research report segments the market into the following subsegments:

Modular Instruments Market, by Platform Type

• PXI
• AXIe
• VXI

Modular Instruments Market, by Application

• R&D
• Manufacturing & Installation

Modular Instruments Market, by Vertical

• Telecommunications
• Aerospace & Defense
• Automotive & Transportation
• Electronics & Semiconductor
• Others

Modular Instruments Market, by Geography

• North America
• Europe
• APAC
• RoW

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for this report:

Company Information

• Detailed analyses and profiling of additional market players

Opportunity Identification

• Detailed analyses of specific industries and respective use cases or applications of modular instruments
• Opportunities for payers in modular instruments market w.r.t. investments in different industries and countries

Company Profiles:

• Detailed analysis of the major companies in the market.

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Modular instruments are defined in software residing in host PCs, which makes it possible to define measurements and analysis in real time. Modular instruments generally use computer–user interfaces instead of displays and controls embedded in the instrument’s frames or packages. To increase flexibility, an engineer can deploy algorithms on field-programmable gate arrays (FPGA). So, instead of a fixed or vendor-defined software architecture, a user can make changes in modular instrumentation according to his/her requirements.

The global modular instruments market is estimated to be USD 1.33 billion in 2018; it is expected to reach USD 2.11 billion by 2023, at a CAGR of 9.6% from 2018 to 2023. The overall market is segmented based on platform type (PXI, AXIe, and VXI); application (R&D and manufacturing & installation); vertical (aerospace & defense, telecommunications, automotive & transportation, electronics and semiconductor, and others); and geography (North America, Europe, Asia Pacific, and Rest of the World).

The growth of the modular instruments market is driven by increased R&D spending; benefits such as low cost, modularity, compact size, increased throughput, flexibility, and extended lifetime offered by modular instruments. Increased demand for the deployment of LTE from the telecommunications sector is boosting the adoption of modular instruments. Additionally, end users are now motivated to adopt modular instruments in 5G R&D activities; growth of IoT and rapid adoption of IoT devices present tremendous opportunities for the market to thrive in the coming years.

The PXI platform held the largest share of the modular instruments market in 2017. This platform is based on PCI, and hence, it inherently brings the advantages of reduced cost, improved performance, and a mainstream software model to end users. The need for a modern computer-based modular architecture that can integrate traditional measurement capabilities with machine vision, motion control, and automation has resulted in the quick adoption of PXI as an industry standard. Some of the major companies that provide PXI-based modular instruments are National Instruments, Keysight Technologies, Teradyne, Rohde&Schwarz, Viavi Solutions, Fortive, and Teledyne Lecroy.

The market for R&D applications is expected to grow at a higher CAGR than manufacturing & installation applications during the forecast period. Increasing research on the 5G technology is a major factor fueling the demand for modular instruments in R&D applications.

Telecommunications vertical is expected to create the highest demand for modular instruments market during the forecast period. Widespread demand for wireless technologies is currently driving the market for the telecommunications sector. The market is expected to grow substantially during the forecast period with the increasing subscriber base for different advanced technologies, such as WiMax, 3G, 4G, LTE, LTE-A, and 5G.

North America is expected to account for the largest share of the modular instruments market during the forecast period. North America commands the biggest share owing to demands from telecommunications and aerospace & defense sectors. Furthermore, the shift toward connected cars and intelligent transportation systems along with an increasing demand from the electronics & semiconductor sector is expected to drive the market in the region.

Applications in telecommunications, electronics & semiconductor, and aerospace & defense to drive the growth of modular instruments market

Telecommunications

The demand for wireless technologies is fuelled by developments in the wireless communications industry, such as imminent long-term evolution (LTE), increased adoption of smart devices, higher mobility, and the explosive growth of mobile data traffic. At the same time, companies are slowly incorporating enhanced capabilities of the LTE-Advanced standard, which is considered as the bridge to 5G communications. Modular instruments solution vendors provide test cases during initial development of mobile devices, which help in reducing issues at the conformance validation stage. Given the growth of and demand for telecommunications, it is exigent that the underlying infrastructure is rejigged to handle increased load and buttress newer technologies such as LTE, LTE-A, 4G, and 5G.

Electronics & Semiconductor

Electronics manufacturing is a highly competitive industry with challenging standards for reliability and performance. The reliability of an overall electronic system is affected by the reliability of its components and the way they are interconnected to serve the intended purpose. This subsequently eventuates the need for testing these components and devices at different stages of the manufacturing cycle, which provides significant opportunities for modular instruments market.

Aerospace & Defense

Modular instruments are vital for the aerospace & defense sector; instruments used in the aerospace & defense application include automatic test equipment, machine vision systems, network analyzers, spectrum analyzers, and signal generators. They are used for ensuring safety and security by means of checking various components, sub-systems, and systems for tracking, communications, detection, etc. The primary reason for using modular instruments for aerospace & defense application is their features such as quick measurement and low power consumption.

Critical questions the report answers:

• Where will the current developments take the industry in the mid to long term?
• What are the upcoming opportunities for modular instruments in different industry applications?

One of the major challenges faced by players in the market is the dominance of a few large companies, which truncates growth potential for smaller vendors. Factors restraining market growth include increased penetration of rental and leasing services.

Product developments and partnerships are the major strategies adopted by leading players to grow in the modular instruments market. Approaches such as partnerships and collaborations are also adopted by various players in this market. A few leading players have also adopted acquisition as a tool to consolidate their market positions.

Keysight Technologies (US), National Instruments (US), Fortive Corporation (US), Viavi Solutions (US), Astronics Corporation (US), Teledyne Technologies (US) (Teledyne Lecroy (Germany)), Rohde & Schwarz (Germany), Ametek (VTI Instruments) (US), Teradyne (US), and Pickering Interfaces (UK) are some of the leading players in the modular instruments market.

Some of the other prominent players in the market include Giga-tronics (US), Elma Electronic (Switzerland), Asis Pro (Israel), Guzik technical Enterprises (US), Test Evolution Corporation (US), Adlink Technology (Taiwan), Chroma ATE (Taiwan), GOEPEL Electronic (Germany), Marvin Test Solutions (US), and Bustec (UK).

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