Test and Measurement Equipment Market by Product Type (General-purpose Test Equipment and Mechanical Test Equipment), Service Type (Calibration Services and Repair/After-sales Services), Vertical and Region - Global Forecast to 2028
[190 Pages Report]The test and measurement equipment market is expected to reach USD 42.9 billion by 2028 from USD 34.3 billion in 2023, at a CAGR of 4.6% during the 2023–2028 period. Various types of test and measurement equipment are utilized to analyze, validate, and verify measurements of electronic and mechanical systems. These instruments generate signals and capture responses from electronic devices under test (DUTs). Their purpose is to assess the efficacy of operational processes and aid manufacturers in monitoring and enhancing the quality, safety, and productivity of their products. The two main categories of such equipment are general-purpose test equipment (GPTE) (including oscilloscopes, signal generators, arbitrary waveform generators, digital multimeters, logic analyzers, power meters, power supplies, and modular instruments) and mechanical test equipment (MTE) (encompassing non-destructive test equipment, machine vision inspection systems, and machine condition monitoring systems). In terms of market growth, the healthcare and IT & telecommunications sectors are projected to make the most significant contributions in the vertical segment. The test and measurement equipment market is divided into products and services, creating a fragmented overall market.
Test and Measurement Equipment market Forecast to 2028
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Test and Measurement Equipment Market Dynamics
Driver: Increased need for interoperability testing owing to growing deployment of IoT and connected devices
The rising adoption of connected technologies to increase production and improve manufacturing efficiency and the growing need to assess and test the Internet of Things (IoT)-enabled products to ensure data and product security boost testing, inspection, and certification market growth. Although manufacturers can increase their profit margins by deploying IoT and connected devices, they present many challenges and risks to manufacturers and developers. As data breaches continue to grab headlines, manufacturers are focused on safeguarding connected devices and user data. With rapid technological advances, the industry has responded to cybersecurity concerns by following necessary standards and regulations such as ANSI/UL 2900, IEC 62443, the National Institute of Standards and Technology (NIST) Cybersecurity Framework. Despite the pandemic, the market for connected devices continues to grow. In 2020, for the first time, the market witnessed the increased deployment of connected IoT devices (e.g., connected cars, smart home devices, and connected industrial equipment) than non-IoT devices (smartphones, laptops, and computers). Personal IoT devices, including fitness wearables, have become pervasive in the last two years and are likely to be increasingly adopted by the remaining population in the coming years. Smart devices facilitate data exchange. Testing is instrumental in ensuring that these devices remain connected securely and perform efficiently. In a connected world, global companies need to organize their quality assurance and testing functions using a combination of centralized and decentralized approaches. A testing team is vital for complex integrations and transformations in product development processes.
Restraint: Strong inclination of customers toward adoption of test and measurement equipment on rental basis
Technological advancements boost the demand for test and measurement equipment in end-user industries. This ratio is increasing because the adoption of test and measurement equipment on rental basis is more profitable to the customers whereas it is a restraint to the producing firms. Mostly companies with less capital go for rented test and measurement equipment. The unavailability of our own equipment, facing challenges towards repair, calibration, and unexpected peak in testing workload are the main reasons for the customers renting the equipment. However, new test and measurement equipment are typically expensive. To reduce their operational costs, several organizations across industries, including aerospace & defense, communications, automotive, and electronics, often take testing and measurement equipment on a rental basis, which is a cost-saving approach rather than buying new testing and measurement equipment.
Opportunity: Growing adoption of breakthrough technologies by consumers worldwide
Technological advancements are rapidly reshaping various industries, including healthcare, at an unprecedented pace. Notably, significant progress is witnessed in the healthcare sector. The utilization of wearable devices like smartwatches enables the collection of data, enabling the prediction and proactive treatment of health conditions in individuals, even before symptoms manifest. This approach, known as precision medicine, empowers physicians to prescribe medications and administer treatments with greater accuracy and specificity to their patients. This has been possible because of the innovations in the fields of genomics and AI; such technological advances help understand how diverse people’s bodies are healthier or inferior to fight against specific ailments, as well as how they are likely to react to different types of medications or treatments.
Similarly, electric vehicles (EVs) are one of the leading technologies worldwide. (EV testing goes way beyond homologation testing for vehicles and their components. It also covers the charging interfaces and associated systems that enable EVs, charging stations, and back-office systems to communicate with one another, known as interoperability or conformance testing. With the increase in the adoption of EVs worldwide, the demand for battery performance and safety testing, electric motor testing, vehicle performance testing, charger testing and certification, etc., is likely to rise significantly.
Challenge: Calibration, irregularity, and complexity issues in antenna arrays
Currently technological environment antennas play a wide role. The reliability and quality of antenna performance is essential for innovative embedding antennas. The success of production quality and time control relies on fast and accurate antenna measurements.
The growing acceptance of multiple-input and multiple-output (MIMO) in 5G New Radio (NR) technology is anticipated to drive the expanded usage of test and measurement equipment for evaluating the performance of radiation patterns in the device under test (DUT). In this context, antenna arrays are employed to achieve high antenna gain through beamforming, which compensates for the free space path loss inherent in high-frequency 5G systems. Beamforming involves the utilization of multiple antenna components in antenna arrays to achieve directional characteristics, aiding in the reduction of energy consumption in electronic devices.
Test and measurement equipment Market Ecosystem
The prominent players in the test and measurement equipment market are Fortive (US), National Instruments (US), Keysight Technologies (US), Teledyne Technologies (US), and Rohde & Schwarz (Germany). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint.
The GPTE product type is projected to hold the larger market share of the test and measurement equipment market during the forecast period
GPTE (general-purpose test equipment) are expected to hold a larger market share during the forecast period primarily due to the growing adoption of the 5G network, which would drive the demand for GPTE. General-purpose test equipment (GPTE) uses devices that help in measuring the electronic parameters of devices such as voltage, frequency, watts, and other diagnostic features. The PG3 Digital Pattern Generator Series is an important general-purpose tool which is used to stimulate designs. It gives flexibility and expandability to its wide range of applications.
Most test and measurement equipment offer high bandwidth, more accuracy, and higher resolution than those in the earlier ones. Some prominent verticals in which such equipment are used include IT & telecommunications, healthcare, automotive, and industrial.
Healthcare vertical is expected to grow at the highest CAGR in the test and measurement equipment market during the forecast period
There is a significant growth potential for test and measurement equipment in the healthcare vertical with the rapid development of new medical devices, patient monitoring systems, and personal emergency reporting systems. Many current and emerging technologies have been incorporated into the healthcare industry for a variety of applications. Medical device and test system failure or performance decline might have serious repercussions which is expected to increase the demand of test and measurement equipment market in this vertical.
Asia Pacific is projected to grow at the highest CAGR of the test and measurement equipment market by 2028
The country is becoming a new hub for companies from all over the world which in turn increases the demand for test and measurement equipment in the country. There are many test and measurement manufacturers in India such as MEXTECH, Rishabh Instruments, Meco Instruments, Fluke Corporation, Rohde & Schwarz India Pvt Ltd, Microtek Instrument, Metro Electronic, Anritsu Corporation, Aplab Ltd and Tektronics. The Indian government is all ready to accept Micron Technology's investment request for USD 1 billion to build an ATMP plant in India. The fifth-largest semiconductor manufacturer in the world, Micron Technology is headquartered in Idaho, USA. The company operates 11 production facilities in the US, China, Japan, Taiwan, Malaysia, and Singapore. During the Commercial Dialogue March 2023, India and the US inked an MoU of partnership aims to create a collaboration framework between the two governments on supply chain resiliency and diversity for semiconductors.
Test and Measurement Equipment Market by Region
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Key Market Players
The major players in the test and measurement equipment Companies include Yokogawa Electric (Japan), Keysight Technologies (US), Rohde & Schwarz (Germany), Fortive (US), Anritsu (Japan), Advantest (Japan), National Instruments (US), EXFO (Canada), VIAVI Solutions (US), OWON Technology (China), Teledyne Technologies (US), GW Instek (Taiwan), AMETEK (US), ADLINK Technology (Taiwan), Leader Instruments (US), RIGOL Technologies (China), Dynamic Signal (US), Astronics Test Systems (US), Vaunix (US), DS Instruments (US), Saluki (Taiwan), IKM Instrutek (Norway), Uni-Trend Technology (China), Particle Measuring Systems (US), and Mextech Technologies (India). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.
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Report Metric |
Details |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million), Volume (Thousand Units) |
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Segments covered |
By Product Type, By Service Type, By Vertical, and By Region |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of World |
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Companies covered |
The major players in the test and measurement equipment market are Yokogawa Electric (Japan), Keysight Technologies (US), Rohde & Schwarz (Germany), Fortive (US), Anritsu (Japan), Advantest (Japan), National Instruments (US), EXFO (Canada), VIAVI Solutions (US), OWON Technology (China), Teledyne Technologies (US), GW Instek (Taiwan), AMETEK (US), ADLINK Technology (Taiwan), Leader Instruments (US), RIGOL Technologies (China), Dynamic Signal (US), Astronics Test Systems (US), Vaunix (US), DS Instruments (US), Saluki (Taiwan), IKM Instrutek (Norway), Uni-Trend Technology (China), Particle Measuring Systems (US), and Mextech Technologies (India) |
Test and Measurement Equipment Market Highlights
The study segments the Test and measurement equipment market based on instrument, sampling technique, application, and region at the regional and global level.
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Segment |
Subsegment |
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By Product Type |
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By Service Type |
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By Vertical |
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By Region |
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Recent Developments
- In January 2023, Keysight Technologies introduced the Electrical Performance Scan (EP-Scan), a new high-speed digital simulation tool that supports rapid signal integrity (SI) analysis for hardware engineers and printed circuit board (PCB) designers.
- In January 2023, Rohde & Schwarz has unveiled Benchmarker 3, a new solution aimed at driving the evolution of network benchmarking. This advanced benchmarking solution empowers mobile network operators (MNOs) to effectively address the growing challenges posed by technological advancements, cost constraints, time limitations, and competitive pressures in the industry.
- In November 2022, AVL and Rohde & Schwarz have joined forces to streamline and expedite electromagnetic compatibility (EMC) tests conducted in realistic driving scenarios. In order to simplify and accelerate the development process, AVL and Rohde & Schwarz have introduced an innovative solution for automated EMC data analysis, specifically designed for electric drivetrains being tested under real-world driving conditions.
- In October 2021, National Instruments announced the acquisition of NH Research, LLC, a company in high power test and measurement applications such as electric vehicles (EV) and batteries.
- In August 2021, Keysight Technologies has introduced the latest addition to its lineup, the Keysight Nemo 5G RAN Analytics software. This advanced software solution operates in the cloud and offers full automation, enhancing the efficiency of data processing, reporting, and analytics. It enables swift analysis of a mobile operator's 5G radio access network (RAN) performance, facilitating rapid decision-making and optimization.
Frequently Asked Questions (FAQ):
What is the current size of the global test and measurement equipment market?
The test and measurement equipment market is estimated to be worth USD 34.3 billion in 2023 and is projected to reach USD 42.9 billion by 2028, at a CAGR of 4.6% during the forecast period.
Who are the winners in the global test and measurement equipment market?
Companies such as Fortive (US), National Instruments (US), Keysight Technologies (US), Teledyne Technologies (US), and Rohde & Schwarz (Germany), fall under the winners category.
Which region is expected to hold the highest market share?
Asia Pacific is expected to dominate the test and measurement equipment market during forecast period. Presence of established manufacturing companies, increasing need for better medical equipment and security are some of the major factors driving the market growth in the region.
What are the major drivers and opportunities related to test and measurement equipment market?
Growing adoption of electronic devices, rising sdemand for high-performance and power-efficient electronic devices, and surging deployment of advanced networking and communication technologies of test and measurement equipment in clinical application are some of the major drivers and opportunities for test and measurement equipment market.
What are the major strategies adopted by market players?
The key players have adopted product launches, acquisitions, collaborations, and partnerships to strengthen their position in the test and measurement equipment market.
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The research study involved 4 major activities in estimating the size of the test and measurement equipment market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the test and measurement equipment market. Secondary sources considered for this research study include government sources; corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and professional associations. Secondary data has been collected and analyzed to determine the overall market size, further validated through primary research.
Primary Research
In the primary research process, various primary sources have been interviewed to obtain qualitative and quantitative information related to the market across four main regions-Asia Pacific, North America, Europe, and RoW (the Middle East, Africa, and South America). Primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology directors, and a few other related key executives from major companies and organizations operating in the test and measurement equipment market or related markets.
After the completion of market engineering, primary research has been conducted to gather information and verify and validate critical numbers obtained from other sources. Primary research has also been conducted to identify various market segments; industry trends; key players; competitive landscape; and key market dynamics, such as drivers, restraints, opportunities, and challenges, along with the key strategies market players adopt. Most of the primary interviews have been conducted with the supply side of the market. This primary data has been collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
The top-down and bottom-up approaches have been used extensively in market engineering. Several data triangulation methods have also been used to perform market forecasting and estimation for the report’s overall market segments and sub-segments. Multiple qualitative and quantitative analyses have been performed on the market engineering process to gain key insights throughout the report.
Secondary research has been used to identify the key players offering test and measurement equipment. The revenues of those key players have been determined through both primary and secondary research. The revenues have been identified geographically as well as market segment-wise, using financial statements and analyzing annual reports of the key market players. Interviews with CEOs, VPs, directors, and marketing executives have also been conducted to gain insights into the key players and the test and measurement equipment market. All the market shares have been estimated using secondary and primary research. This data has been consolidated, supplemented with detailed inputs and analysis from MarketsandMarkets, and presented in this report.
Market Size Estimation Methodology-Bottom-up approach
The bottom-up approach has been employed to arrive at the overall size of the test and measurement equipment market from the calculations based on the revenues of the key players and their shares in the market. Key players in the test and measurement equipment market, including Keysight Technologies (US), Rohde & Schwarz (Germany), Fortive (US), National Instruments (US), and Teledyne Technologies (US) have been studied. The market size estimations have been carried out considering the market size of their Test and measurement equipment offerings.
In the top-down approach, the overall market size has been used to estimate the size of individual markets through percentage splits from secondary and primary research.
The most appropriate parent market size has been used to implement the top-down approach for the calculation of specific market segments.
Data Triangulation
After arriving at the overall market size from the market size estimation process explained above, the total market has been then split into several segments and sub-segments. Data triangulation has been employed to complete the market engineering process and arrive at the exact statistics for all segments and sub-segments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Different types of test and measurement equipment are used to analyze, validate, and verify measurements of electronic and mechanical systems. They create signals and capture responses of electronic devices under test (DUTs). Such equipment is used to make decisions regarding the effectiveness of operational processes and help manufacturers monitor and improve the quality, safety, and productivity of their products. General-purpose test equipment (GPTE) (oscilloscopes, signal generators, arbitrary waveform generators, digital multimeter logic analyzers, power meters, power supplies, and modular instruments) and mechanical test equipment (MTE) (non-destructive test equipment, machine vision inspection systems, and machine conditioning monitoring systems) are the 2 major categories of test and measurement equipment.
Stakeholders
- Raw material and manufacturing equipment suppliers
- Semiconductor wafer vendors
- Fabless players
- Foundry players
- Original equipment manufacturers (OEMs)
- Original design manufacturers (ODMs) and OEM technology solution providers
- Networking solutions providers
- Distributors and retailers
- Research organizations
- Technology standards organizations, forums, alliances, and associations
- Technology investors
- Software providers
- Value-added resellers (VARs)
The main objectives of this study are as follows:
- To define, describe, and forecast the test and measurement equipment market by product type, service type, vertical, and geography, in terms of value.
- To forecast the market for general-purpose test equipment, in terms of volume based on region, vertical, products, and services.
- To forecast the market for various segments with respect to 4 main regions—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), in terms of value.
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges that influence the growth of the market.
- To provide a detailed overview of the test and measurement equipment value chain, along with industry trends, technology trends, use cases, security standards, and Porter’s five forces.
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market.
- To analyze the opportunities in the market for stakeholders by identifying high-growth segments and detail the competitive landscape for market players.
- To strategically profile key players and comprehensively analyze their market rankings and core competencies2.
- To analyze the competitive developments such as joint ventures, mergers and acquisitions, product launches, and research and development (R&D) carried out by market players.
- To map the competitive intelligence based on company profiles, key player strategies, and game-changing developments, such as product developments, collaborations, and acquisitions.
- To benchmark players within the market using the proprietary Competitive Leadership Mapping framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Country-wise Information:
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Company Information:
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Test and Measurement Equipment Market