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The modular instruments market size is forecast to increase by USD 1.50 billion, at a CAGR of 11.74% between 2023 and 2028. The market growth analysis depends on the communication sector in the Asia-Pacific region experiencing notable growth, driven by advancements in technology and increasing connectivity demands. Developed economies witness expanding aerospace and defense sectors, driven by innovation, government investments, and geopolitical factors. Simultaneously, East Asian countries observe a significant rise in electronics exports, fueled by manufacturing expertise, global demand, and supply chain resilience. These trends reflect dynamic shifts in regional and global economies, shaping industries and driving market dynamics. The robust growth of the communication sector in APAC underscores the region's pivotal role in driving technological innovation and digital transformation. Likewise, the expansion of aerospace and defense industries in developed economies highlights the importance of security and innovation in an increasingly complex geopolitical landscape. Additionally, the surge in electronics exports from East Asia underscores the region's dominance in global manufacturing and trade, contributing to economic growth and prosperity. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The market is witnessing substantial growth driven by advancements in technological innovations and the widespread adoption of electronic devices across various sectors. With the proliferation of smartphone manufacturers and the expansion of communication and networking capabilities, the demand for modular instruments is on the rise. These instruments cater to diverse industries, benefiting from the collaboration between network providers, electronic component manufacturers, and the integration of IoT devices. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Over recent years, there has been a noticeable decline in the revenue growth rate of the global aerospace and defense industry. However, there's a promising outlook driven by increased defense budgets in developed countries like the UK, the US, France, Japan, and several Middle Eastern nations. This surge in funding is expected to significantly boost sales of modular equipment, especially with the rise of global security threats.
Moreover, there's anticipation of a recovery in the defense sector as governments of developed nations focus on modernizing their armed forces. This entails embracing next-generation technologies such as technological innovations in defense electronics, precision strike applications, cyber defense, and intelligence collection. The growth in the defense sector is projected to fuel market expansion in the forecast period, stimulating adoption across various segments including communication and networking, electronic device adoption, smartphone manufacturers, network providers, electronic component manufacturers, and IoT devices.
The rising number of mobile users and higher loads on mobile networks are the new trends that shape the growth of the market. These networks operate on unused bands, such as V-band, to transmit large amounts of data. Current test solutions are developed for high bandwidth applications involving complex setups that require frequent calibration. These solutions have a linearity problem, resulting in the lack of fast response provided by solutions based on a single oscilloscope.
Moreover, the 5G networks have multipoint connectivity with distributed MIMO. They can provide multiple MIMO streams while a single device is connected to multiple sites at the same time, achieving up to 100% downlink throughput. So network operators are working with testing companies to test and develop 5G technology. Hence, such emergence is contributing to the growth of the global market during the forecast period.
The use of T&M as modular instruments is promoted by increased scrutiny of large capital and associated costs. In addition, companies have paid more attention to the use of these modular tools and have developed strategies to better manage them. As a result, there is growing awareness of the different means of purchasing them, including rental and leasing services. Penetration of these services in the companies has been steadily increasing. While much of this market represents field applications, R&D and manufacturing applications present excellent opportunities for rental and leasing services.
Additionally, in research, projects particularly dependent on rental services and high prices, coupled with rapidly changing technology, offer more opportunities for leasing in evolving applications. In the manufacturing industry, companies that need high flexibility or those that deal with seasonality and focus on cost management will create opportunities for such rental services. Hence, the growing leasing and rental services for various modular instruments are expected to hamper their demand across the globe during the forecast period.
By End-user
The semiconductor and electronics segment will account for a major share of the market's growth during the forecast period.? In the semiconductor and electronics industries, processes that require the use of modular tools include mechanical and electrical engineering, nano and submicron precision technology, photonics manufacturing, and nanotechnology. The production of printed circuit boards became popular due to the advancements it is making in newer, faster, and more precise manufacturing technologies. Therefore, it is expected to create a demand for modular instruments.
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The semiconductor and electronics segment was valued at USD 502.20 million in 2018.? The US, Taiwan, South Korea, and China were the main contributors to the growth of the global semiconductor industry. The growth of the semiconductor industry has been aided by factory automation and building and housing control. China's economy is slowly recovering due to government-backed stimulus programs to support various industries, including semiconductors and consumer electronics. This has resulted in companies in various industrial sectors increasing spending on microchips, including manufacturing and process automation, T and M, building and home control, security, and video surveillance. Thus, driving the growth of the market during the forecast period.
Based on the product, the market has been segmented into the PXI platform, VXI platform, and AXIe platform. The PXI platform?segment will account for the largest share of this segment.?The PXI platform operates on a peripheral component interconnect (PCI), which reduces the cost of modular instruments. It also improves the performance of automatic T and M devices. This is due to the availability of up-to-date peripherals and the latest software, offered by a number of PC vendors around the world. Furthermore, the instrument studio also saves project-level configurations for the specific devices under test (DUT), which can be reused later or shared with others. This efficiency is important for testing highly mixed devices and provides convenient test repeatability for engineers or technicians. Thus, such factors drive the growth of the PXI platform in the global market during the forecast period.
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APAC is estimated to contribute 46% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Major investments in wireless communications for IoT (Internet of Things) and defense and aviation industries are playing a key role in driving the market in APAC. China, Japan, and South Korea are the leading countries in the production of modular instruments in the region, as there are many suppliers in these countries that manufacture low-cost advanced test equipment for defense and aerospace applications.
Moreover, the growth of the IoT field is expected to create a demand in APAC. The implementation of modular instruments in the media industry depends on the development of the telecommunications industry. APAC is the fastest-growing market for wireless test equipment. The growing number of mobile network subscribers in the APAC region, coupled with the increasing penetration of smartphones, will have a positive impact on the market in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AMETEK Inc., Aplab Ltd, Astronics Corp., Chroma ATE Inc., Coolisys Technology Inc., EXFO Inc., Fortive Corp., GOPEL electronic GmbH, Guzik Technical Enterprises, Keysight Technologies Inc., National Instruments Corp., Pickering Interfaces Ltd., Rohde and Schwarz GmbH and Co. KG, Sulzer Ltd., Teledyne Technologies Inc., Teradyne Inc., The Marvin Group, Viavi Solutions Inc., and Yokogawa Electric Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market drives innovation in test and measurement tools, offering versatile solutions for electronic equipment and instruments. With the proliferation of LTE and smart devices, demand for technology hardware and equipment rises, necessitating efficient mobile data traffic management. Modular instruments provide flexibility with wireless technologies and benchtop tests, enhancing deployment capabilities and scalability. These hardware devices enable precise measurements and functional cards integration, supported by intuitive user interfaces and adaptable test programs. Emphasizing data transfer efficiency and functionality, modular instruments streamline operations while ensuring faceless instruments compatibility and optimal performance across sole instrument buses. Further, the test program utilizes USB-based instruments within portable chassis to conduct synchronized measurements, integrating seamlessly with Data Acquisition Systems (DAQ) and adhering to VXI and LXI standards for efficient USB integration.
Further, in the realm of test and measurement, the market stands at the forefront, catering to diverse industries such as automotive and transportation and electronics and semiconductor. With the evolution of fourth generation (4G) technologies and LTE Advanced, demand surges for versatile solutions like LTE gateways and access points, leveraging Ethernet and fiber optics for enhanced connectivity. Modular instruments offer seamless integration with machine vision and motion control, ensuring precise measurements and optimized user interface experiences. Emphasizing data transfer rates and system compatibility, these instruments excel in industrial test benches, supported by standards like PCIe, VXI, and LXI for streamlined operations and efficient data acquisition.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.74% |
Market growth 2024-2028 |
USD 1.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.19 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADLINK Technology Inc., AMETEK Inc., Aplab Ltd, Astronics Corp., Chroma ATE Inc., Coolisys Technology Inc., EXFO Inc., Fortive Corp., GOPEL electronic GmbH, Guzik Technical Enterprises, Keysight Technologies Inc., National Instruments Corp., Pickering Interfaces Ltd., Rohde and Schwarz GmbH and Co. KG, Sulzer Ltd., Teledyne Technologies Inc., Teradyne Inc., The Marvin Group, Viavi Solutions Inc., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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