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The modular instruments market size is forecast to increase by USD 1.08 billion at a CAGR of 9.69% between 2022 and 2027. The growth of the market hinges on several key factors, including the robust expansion of the communication sector in the Asia-Pacific region, the steady growth of aerospace and defense sectors in developed economies, and the increasing export volumes of electronics from East Asian countries. These elements collectively drive the momentum of market expansion, reflecting the dynamic interplay between regional advancements and global trade dynamics. Our market research and growth report examines historical data from 2017 to 2021, besides analyzing the current market scenario. This market report and analysis also includes an in-depth analysis of drivers, trends, and challenges.
Modular Instruments Market Forecast 2023-2027
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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 459.86 million in 2017 and continued to grow until 2021.? 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 45% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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.
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 data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Expanding aerospace and defense sectors in developed economies. 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, 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.
Emergence of 5G network.is a major trend. The rising number of mobile users, higher loads on mobile networks, as well as the emergence of IoT have triggered the growth of 5G networks. 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.
Growing leasing and rental services is a major challenge. 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.
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.
ADLINK Technology Inc.: The company offers modular instruments such as the PXI platform for modular automated test equipment ATE, with PXI modules, chassis, and controllers providing interoperability.
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 Management Ltd., Teledyne Technologies Inc., Teradyne Inc., The Marvin Group, Viavi Solutions Inc., and Yokogawa Electric Corp.
Technavio report provides 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 Global Modular Instruments Market is witnessing significant growth fueled by Technological Innovations and the widespread adoption of Electronic Devices across various sectors. Key players, including Smartphone Manufacturers, Network Providers, and Electronic Component Manufacturers, are driving demand for modular instruments to support Communication and Networking, especially with the proliferation of IoT Devices and Connected Devices. These instruments find applications in diverse fields such as Vehicles, Utility Meters, and Wearable Technology. While 5G Deployment and advancements in Wireless Communication are expanding market opportunities, challenges persist, including the High Cost of Instruments and the need for a Skilled Workforce. The market encompasses a wide range of solutions, including Machine Vision Systems, Automatic Test Equipment, and Spectrum Analyzers, catering to industries like Telecommunication and Aerospace & Defense. This market is witnessing robust growth driven by the increasing adoption of Electronic Devices across various sectors.
Manufacturers of Electronics and Semiconductor Devices, are leveraging advancements such as Narrowband IoT (NB-IOT), Bluetooth Low Energy (BLE), and LTE-M to cater to the evolving needs of the Wireless Communication Industry. This market encompasses a wide range of solutions, from Tracking Devices and Vending Machines to Tablets and Manufacturing Facilities. As the demand for efficient testing and measurement tools rises, specialized instruments like Network Analyzers and Signal Generators play a crucial role, particularly in the telecommunication segment. Additionally, the AXIe Segment with LAN and PCIe Interfaces offers high-performance solutions for diverse applications. One key driver is the increasing demand from the aerospace & defense segment, which relies heavily on precise testing and measurement. Moreover, with the proliferation of smart devices and wireless communication devices, there's a surge in mobile data traffic worldwide. This necessitates robust testing solutions to ensure network reliability and performance. The emergence of long-term evolution (LTE) and other advanced wireless technologies further underscores the need for sophisticated test and measurement instruments. Modular instruments manufacturers, recognizing this demand, are investing in developing innovative solutions to cater to diverse infrastructure requirements. Collaboration with industry giants like GSMA enhances the market reach and fosters technological advancements in the field.
This market trends and analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Modular Instruments Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.69% |
Market growth 2023-2027 |
USD 1,08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.59 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, 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 Management Ltd., Teledyne Technologies Inc., Teradyne Inc., The Marvin Group, Viavi Solutions Inc., and Yokogawa Electric Corp. |
Market dynamics |
Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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