Test and Measurement Equipment Market Size, Share & Trends

Updated on : September 13, 2024

Test and Measurement Equipment Market Size & Growth

[254 Pages Report] The test and measurement equipment market size are projected to reach USD 47.01 billion by 2029 from USD 38.91 billion in 2024, at a CAGR of 3.9%.

Electronic gadgets have become a requirement in modern life. Hence, test and measurement tools have become vital to the electronics sector. This report provides market estimates for several mechanical and general-purpose test and measurement devices, such as oscilloscopes, power meters, and logic analyzers. These tools are essential for assessing design prototypes and final products manufactured by companies in the IT & telecommunications, aerospace & defense, electronics & semiconductor, and automotive & transportation sectors.

The test and measurement equipment market share is segmented by product type, service type, vertical, and region. The product type segment is further classified into oscilloscopes, signal generators, multimeters, logic analyzers, spectrum analyzers, BERT solutions, network analyzers, power meters, electronic counters, modular instruments, automated test equipment, and power suppliers. The vertical type is sub-segmented into automotive & transportation, aerospace & defense, IT & telecommunications, education & government, electronics & semiconductor, industrial, and healthcare. The healthcare industry is likely to witness the fastest growth from 2024 to 2029 due to the increasing demand for patient monitoring and personal emergency reporting services, as well as for advanced medical devices. Asia Pacific is projected to witness the highest growth rate during the forecast period. The market in this region is driven by the increased manufacturing activity in developing nations. Many companies are establishing their production plants and R&D facilities in Asian countries due to favorable government policies.

Test and Measurement Equipment Market Forecast to 2029

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Test and Measurement Equipment Market Trends:

Impact of AI/Gen AI on Test and Measurement Equipment Market Share

The integration of Gen Al and Al in test and measurement equipment has transformed the industry by increasing the efficiency of measurement and testing solutions. Self-healing automation is designed to automatically detect problems when they occur in the form of test failure or inconsistency. This allows the artificial intelligence-powered testing tools to make corrections in the process to reduce errors and make the software testing process more resilient.

Demanding defect analysis and scheduling tools can analyze the data gathered; assess the important issues that need attention; and schedule the necessary fixes according to their severity, need, and priority. These tools can also predict potential defects and suggest test cases that need to be run based on patterns and the historical database. This results in increased execution speed due to automating repetitive tasks, reduced testing time, and overall improvement in efficiency. These factors have a significant positive impact on the test and measurement market.

Test and Measurement Equipment Market Dynamics

Driver: Stringent government rules and regulations pertaining to product safety and environmental protection

Modern-day consumers demand more reliable and high-quality products and services. Therefore, organizations worldwide are more focused on adopting safe and reliable testing and measurement solutions and services to address product safety- and quality-related concerns and ensure compliance with government guidelines. These standards and guidelines are intended to mitigate environmental impacts and ensure product safety. Consequently, the enforcement of extensive government standards and stringent regulations is driving the demand for test and measurement equipment and services.

Stringent government regulations related to food and consumer product testing, mandatory inspection regulations, and increased trade of consumer goods driven by digital transformation are the key factors contributing to the growth of the test and measurement equipment market. Moreover, in the automotive sector, governments have imposed stringent environmental regulations on original equipment manufacturers (OEMS) to control CO2 emissions, creating growth opportunities for the providers of test and measurement equipment and related services.

Restraint: Increasing consumption of test and measurement equipment on rental basis

Innovation in test and measurement equipment and services has raised demand among various industries such as IT & telecommunications and automotive. However, a significant obstacle in the market is the rising customer preference for renting the equipment rather than buying. Various companies, specifically those with limited funds, prefer renting test and measurement equipment as a cheaper and more effective solution. It imposes a negative impact on the sales of new test and measurement equipment.

Customers often choose to rent equipment due to factors such as the unavailability of their own devices, difficulties in repair and calibration, and the urgent need to handle unexpected increases in testing workload. The high cost of new test and measurement equipment makes renting a highly attractive alternative, specifically for organizations from the automotive &  transportation, IT & telecommunication, aerospace & defense, and electronics & semiconductor industries. Leasing equipment enables these organizations to save initial investment, eliminate expenses related to tool maintenance and calibration services, and have flexibility in adjusting their equipment needs based on short- and medium-term demand or budget constraints.

Although renting reduces operational costs and offers end users the flexibility to terminate contracts once the need is fulfilled, it affects new equipment sales. Rental options have become more cost-effective, and very few organizations are inclined to buy new test and measurement equipment market. Consequently, companies that focus on renting or leasing equipment are acquiring a significant market share, reflecting a growing preference for rental services over outright purchases.

Opportunity: Rising demand for high-speed and high-bandwidth testing

The rising demand for high-bandwidth and high-speed testing is likely to create significant opportunities for the providers of test and measurement equipment. High-speed data interfaces in industries and the emergence of 5G will lead to high demand for testing solutions that can provide accurate results for evaluating the performance of industry-grade equipment. The increasing adoption of 5G communication technology, automotive radar, and IoT devices is likely to fuel the requirement for signal testing, while the pressing need for high-speed data transmission is expected to increase the demand for signal generators. These trends augment the deployment of the latest and advanced testing equipment by manufacturing firms to ensure optimal performance and high reliability of their products.

Engineers and other professionals use signal and network analyzers and oscilloscopes to test and handle modern and highly complex communication systems. These test and measurement equipment are helpful in comprehensive assessments that ensure the effective functioning of devices.

According to Ericsson, 5G subscriptions are projected to be more than 195 million in the US by 2026, and by 2029, 5G technology will contribute more than 70%  to the entire mobile market in the US. Similarly, according to the Cellular Telephone Industries Association (CTIA), the rapidly increasing 5G subscriptions are likely to attract investment worth USD 275 billion in the US.

Challenge: Keeping pace with rapid technological advancements and managing technological obsolescence

The managing director and vice president of WIKA India Group highlighted that one of the main challenges in the test and measurement equipment industry is keeping up with evolving technologies. Accurate testing is necessary in every part of the product life cycle with product designs becoming more complex. New and better product models are regularly introduced as a result of technologically advanced products, especially for wireless, telecommunications, aerospace, & defense applications. Engineers and manufacturers are likely to update their products to keep up with the latest technical standards and requirements.

Vendors face significant complexities in upgrading equipment to adhere to the latest standards. For instance, the shift from 4G to 5G and the adoption of LTE-4G and LTE-advanced technologies create barriers for vendors striving to keep their products up to date with technical requirements. Collaboration with chipset vendors is essential for the effective deployment of advanced technologies.

Testing LTE, which has two variants-time-division LTE and frequency-division duplexing LTE, requires separate testing equipment for each variant. In addition, vendors must frequently update and maintain firmware to address the diverse needs of various operators, adding further complexity.

Test and Measurement Equipment Ecosystem

The prominent players in the test and measurement equipment market share are Keysight Technologies (US), AMETEK.Inc. (US), Rohde & Schwarz (Germany), NATIONAL INSTRUMENTS CORP. (US), and Fortive (US).

Test and Measurement Equipment Market Segmentation

Automated test equipment segment to account for largest market share during forecast period.

An automated test equipment is used during testing to control the function of the system under test (SUT), conduct tests, capture test data, and generate the test report. These systems can be applied to test different products in several industries, such as automotive and aerospace & defense. In the past, product testing was done manually. However, manual testing takes more time and is often less accurate. To avoid this, automated test equipment is used for more accuracy and reliability. ATE systems perform testing procedures in a sequential manner and also capture the results with execution. These systems guarantee the global integrity of regression, integration, and system testing of various integrated circuits, ATE has become significant in the past few years for the semiconductor market. Manufacturers and technicians widely use automated test equipment systems to test a wide variety of semiconductor devices and components. ATE solutions ensure greater accuracy in product testing and reduce the probability of errors. They also help professionals and manufacturers test electronic products and devices after the production process.

Machine vision inspection systems to capture majority of market share of mechanical test equipment from 2024 to 2030

A machine vision inspection system is an integrated apparatus leveraging lighting solutions, electronics, information technology, optics, software, and automation tools. It checks the manufacturing processes and the quality of materials. The higher demand for quality products has made machine vision a necessary tool in manufacturing for quality control. Industrial image processing usually involves the use of cameras to inspect products on the manufacturing and other industrial production lines. Cameras are deployed in production facilities of pharmaceuticals, food & beverages, and several other industries for product verification. These cameras act as a real-time guide for robots and manage product routing without human intervention. Advanced systems may involve more than one camera, with more functions carried out on the images to report and signal based on some set tolerance levels or requirements.

Recent innovations, such as smart cameras, have expanded machine vision technology applications beyond automotive & transportation and aerospace & defense to include non-industrial applications such as healthcare and security.

On October 24, 2022, SWIR Vision introduced a new machine vision product for more efficient inspection of lithium-ion batteries, which are vital for mobile electrification. SWIR cameras' high-resolution, wide-field-of-view offer performance up to 2,000 nm to meet increasingly stringent performance and quality requirements for battery inspection.

Test and Measurement Equipment Industry Regional Analysis

Leading growth and market share in test and measurement equipment in Asia Pacific region.

Asia Pacific region is expected to grow at the highest CAGR and have the largest market share of test and measurement equipment industry during the forecast period. The region includes China, Japan, India, South Korea, Vietnam, Indonesia and other Asia Pacific countries. The region have multiple OEMs and semiconductor device manufacturers located here. The increasing demand of test and measurement equipment is integrated with the increasing demand of smartphones and raising advanced standards for next generation communication technology and devices.

Test and Measurement Equipment Market by Region

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Top Test and Measurement Equipment Companies - Key Market Players

• Keysight Technologies (US), 
• Fortive (US), 
• AMETEK.Inc. (US), 
• Rohde & Schwarz (Germany), 
• NATIONAL INSTRUMENTS CORP. (US), 
• Teledyne Technologies (US), 
• VIAVI Solutions Inc. (US), 
• Anritsu (Japan), 
• Yokogawa Electric Corporation (Japan), 
• ADVANTEST CORPORATION (Japan), 
• EXFO Inc. (Canada), 
• Fujian Lilliput Optoelectronics Technology Co., Ltd (OWON) (China), 
• IKM Instrutek (Norway) , 
• UNI-TREND TECHNOLOGY (CHINA) CO., LTD. (China), 
• Particle Measuring Systems is a Spectris Company (US), 
• Mextech Technologies India Private Limited (India), 
• RIGOL TECHNOLOGIES, Co. LTD. (China), 
• Good Will Instrument Co., Ltd. (Taiwan), 
• ADLINK Technology Inc. (Taiwan),
• Leader Electronics Corporation (Japan), 
• Crystal Instruments Corporation (US), 
• Astronics Corporation (US), 
• Vaunix Technology Corporation (US), 
• DS Instruments (US), 
• Saluki Technology (Taiwan), 
• Insplorion (Sweden) are some of the key players in the test and measurement equipment companies.

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Scope of the Report

Test and Measurement Equipment Market Highlights

The study segments the test and measurement equipment market based on product type, service type, vertical, and region.

Recent Developments

• In July 2024, VIAVI Solutions Inc. launched NITRO Fiber Sensing, an integrated real-time asset monitoring and analytics solution for critical infrastructure such as oil, gas, and water pipelines, electrical power transmission, border security, and data center interconnects.
• In July 2024, VIAVI Solutions Inc. and the Telecom Infra Project (TIP) strategically collaborated to enhance the testing capabilities of the VIAVI Automated Lab-as-a-Service for Open RAN (VALOR). Funded by a USD 21.7 million grant from the US National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund (PWSCIF), VALOR offers automated, open, and impartial testing and integration for Open RAN, supporting certification in the US for new entrants, startups, and academia, and ensuring the interoperability, performance, and security of Open RAN components.
• In May 2024, Rohde & Schwarz released the MXO 5C series of compact oscilloscopes with up to 2 GHz bandwidth. This 2U high oscilloscope/digitizer is designed for rack mount and applications requiring a low-profile form factor. The MXO 5C series offers the same performance as the MXO 5 series but without an integrated display and with a quarter of the vertical height.
• In May 2024, Anritsu Corporation introduced the site master MS2085A cable and antenna analyzer and the MS2089A with integrated spectrum analyzer. These products are designed to enhance capabilities in maintenance and installation, and address various demands in the general-purpose market.
• In May 2024, ADVANTEST CORPORATION launched the DC Scale XHC32 power supply, which features 32 channels with a total current capacity of up to 640A, an ultra-high-current power supply for the V93000 EXA Scale SoC test system. designed to meet the rising power demands of artificial intelligence accelerators, high-performance computing chips (HPCs), graphical processing units (GPUs), network switches, and high-end application processors.
• In April 2024, Rohde & Schwarz introduced the R&S SMB100B microwave signal generator with four frequency alternatives: 8 kHz to 12.75 GHz, 20 GHz, 31.8 GHz, and 40 GHz. The Microwave Signal Generators supply output power, low close-in phase noise, spectral purity, and low wideband noise.
• In March 2024, Keysight Technologies acquired Riscure, a prominent device security testing and toolmaking company. Riscure's capabilities will be enhanced under the name Riscure Security Solutions within Keysight, enriching the company's security offerings and deepening its expertise. This acquisition aims to enrich Keysight's application and security test portfolio.
• In December 2023, Anritsu collaborated with Sony Semiconductor Israel to validate the industry's first non-terrestrial network (NTN) NB-IoT test case using the 5G NR mobile device test platform ME7834NR powered by Sony's Altair device.
• In December 2023, ADVANTEST CORPORATION partnered with Amarisoft to enhance 5G and IoT device testing. This collaboration allowed users of Amarisoft's 4G and 5G AMARI Callboxes to utilize Advantest's Micro Line Test (MLT) management software. Amarisoft customers will be able to access the MLT software's improved user interface and operator-certified test plans, which have been developed in collaboration with major telecommunications network carriers.
  NTN NB-IoT is an important IoT feature for devices deployed in remote areas lacking terrestrial cell network coverage, such as asset tracking in maritime, logistics, mining, and automotive.
• In October 2023, AMETEK.Inc. acquired AR, Inc. (Amplifier Research Corp.), a manufacturer of RF and microwave amplifiers, hybrid modules, antennas, and control software for EMC testing equipment that finds applications in defense, medical, communications, and automotive sectors. This acquisition complements AMETEK. Inc.'s capabilities in the electromagnetic compatibility testing market.
• In October 2023, Creaform, a subsidiary of AMETEK. Inc., upgraded its HandySCAN 3DTM lineup, the MAX Series. The handheld MAX Series line of industrial 3D scanners, designed and manufactured in Canada, offers a 3D scanning area of approximately 1m x 1m and is developed to acquire accurate 3D measurements of large and complex surfaces. The new portable 3D scanners feature multiple scanning modes, allowing users to choose between the fastest scanning time or maximum resolution, providing versatility for measuring large parts and assemblies (up to 15 m). Combining speed, extra-large measuring volume, accuracy, portability, and simplicity, the new scanners facilitate an efficient measurement process for parts typically found in the aerospace, transportation, energy, mining, and heavy industries.
• In October 2023, Teledyne Technologies Incorporated acquired Xena Networks ApS, a leading provider of high-speed Terabit Ethernet validation, quality assurance, and production test solutions based near Copenhagen, Denmark.

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