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The Asia Pacific (APAC) Test and Measurement Equipment Market size is forecast to increase by USD 2.56 billion at a CAGR of 5.27% between 2022 and 2027. The market growth is subject to various factors, including the expansion of telecommunication networks, increased research and development investments in the Asia-Pacific region, and the growth of the automotive, aerospace, and defense industries. This report on market research and growth delves into a thorough analysis of the current market scenario, along with examining the historic data from 2017 to 2021. The report provides an in-depth understanding of the market trends, challenges, and opportunities, which can help businesses make informed decisions to achieve sustainable growth.
Market Forecast 2023-2027
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The market is influenced by various factors such as compliance with industry standards and regulations, particularly in emerging economies. Research and Development (R&D) efforts drive product development, while preventive and predictive maintenance are essential for equipment longevity. Despite the high initial cost and technological complexity, economic downturns and regulatory challenges pose additional hurdles. The absence of skilled labor and the rapid technical obsolescence of equipment further impact the market. General-purpose test equipment like oscilloscopes play a crucial role in addressing these challenges and driving innovation in the region.
The market is driven by the growing adoption of IoT, AI, and electronic devices across various industries. It supports the semiconductor production, telecommunications, and consumer electronics sectors by ensuring quality assurance and compliance with industry standards and regulations. Emerging economies in the region invest heavily in research and development, fostering product development and innovation. While preventive and predictive maintenance solutions address concerns like high initial costs and technological complexity, challenges persist due to economic downturns, regulatory hurdles, and the absence of skilled labor. Specialized equipment like Automated Testing Tools and Oscilloscopes cater to the region's diverse technological needs. 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.
The largest end-user of test and measurement equipment is the communication industry. It is of critical significance for telecommunication service providers, mobile device manufacturers, and network equipment manufacturers to offer their customers high-quality and high-performing services and products. There has been an ongoing expansion of 4G networks in the region and it is expected that 4G networks will be available to 69% of the population in the region by 2025.
Consequently, from developing countries such as China, India, Indonesia, and Vietnam, the primary demand for the deployment of new 4G networks is anticipated to expand. Such factors are expected to drive the demand for the market equipment. These factors will drive the growth of the market during the forecast period.
The demand is driven by the advancements in electronics and test and measurement technology, which helps end-users increase the service life of T&M equipment while lowering repair and maintenance costs and enhancing operational efficiency in the industry. The adoption of high-complexity electronics and devices and the requirement to lower the cost of testing are anticipated to expand the growth in demand for modular test and measurement equipment for instrumentation.
However, the demand for market equipment is presently driven by manufacturing industries. Here equipment replacement plays a significant role owing to process downtime constraints and operational efficiency, the demand is anticipated to experience growth in the research and development and field testing settings which will positively influence the growth of the market during the forecast period.
The major challenge in the industry is the competition between test and measurement equipment manufacturers. The profit margins of individual vendors in the market depend on their ability to minimize manufacturing costs, maintain continuous order book and production, and provide cyclic product innovation, which can contribute to greater sales. In such cases, most large companies can achieve substantial profit margins owing to the large economies of scale in component and material sourcing, production, and global distribution. Smaller companies may find it difficult to maintain profitable operations in such a competitive environment.
Moreover, some of the smaller companies continue to compete in the market by supplying specialized test and measurement equipment for niche end-user industries or through the development of customized, high-quality products. These factors are expected to present a significant challenge for the market vendors. Such factors will negatively impact the growth of the market in APAC during the forecast period.
This report extensively covers market segmentation by product (GPTE, ATE, WTE, calibration, and others) and end-user (electronics, communication, general industry, A and D, and others). It also includes an in-depth analysis of drivers, trends, and challenges. In the product segment of the market, there's a significant emphasis on cutting-edge technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI). These advancements drive the development of innovative electronic devices and consumer electronics, which are essential components of the region's booming tech industry. Telecommunications companies heavily rely on test and measurement equipment to ensure the reliability and efficiency of their networks. Automated Testing Tools (ATE) play a crucial role in streamlining testing processes, enhancing productivity, and reducing time-to-market for telecommunications products and services. Moreover, in semiconductor production, precise and accurate test and measurement equipment are indispensable for maintaining high standards of quality assurance. As the semiconductor industry continues to expand rapidly in APAC, the demand for these solutions is expected to soar. Overall, the market caters to various industries, providing essential tools for quality assurance, product testing, and technological advancement across the region's dynamic electronics and telecommunications sectors.
The GPTE segment will account for a major share of the market's growth during the forecast period. This segment includes different test and measurement equipment such as oscilloscopes, multimeters, arbitrary waveform generators, power meters, electronic counters, and power quality analyzers. Sectors such as communications, aerospace and defence, mechanical engineering, electronics, and power use this equipment to test their design prototypes and finished products, also to check conformity with the required specifications and ascertain whether the devices fulfil the intended purpose.
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The GPTE segment was valued at USD 2,63 billion in 2017. The demand from the automotive, aerospace, and defense industries is expected to increase which can expand the APAC - test and measurement equipment market possibilities. Automotive production in India, including commercial and passenger vehicles, increased by 30% in 2021 compared to 2020. Similarly, in China, automotive production in 2021 increased by 3% compared to 2020. Growing automotive production needs substantial investments in new manufacturing facilities, which will boost the growth of the test and measurement equipment market in the region through the GPTE segment 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.
Advantest Corp.- The company offers test and measurement equipment such as V93000, EVA100 and AirLogger.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Advantest Corp., Agilent Technologies Inc., Anritsu Corp., Bruker Corp., Cohu Inc., EXFO Inc., Fortive Corp., Hitachi Ltd., HORIBA Ltd., Keysight Technologies Inc., National Instruments Corp., NetScout Systems Inc., Oxford Instruments plc, Renishaw Plc, Rohde and Schwarz GmbH and Co. KG, Spirent Communications plc, Teradyne Inc., Thermo Fisher Scientific Inc., 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 market is experiencing robust growth driven by the rapid adoption of Internet of Things (IoT) and Artificial Intelligence (AI) technologies across various industries. With the proliferation of electronic devices and consumer electronics, telecommunications companies are investing heavily in Automated Testing Tools (ATE) to ensure quality assurance and compliance with industry standards and regulations. Emerging economies in the region are witnessing increased research and development (R&D) activities and product development initiatives, focusing on preventive maintenance and predictive maintenance strategies. Despite facing challenges such as high initial cost, technological complexity, and regulatory hurdles, the market continues to thrive, addressing the absence of skilled labor and overcoming rapid technical obsolescence with innovative solutions and general-purpose test equipment. In the market, economic downturns and regulatory challenges pose obstacles, yet specialized tools like vibration meters are vital for ensuring quality and safety in critical sectors such as aerospace, semiconductors, helicopters, and airplanes, supported by essential services like calibration and repair/after-sales services.
The market is witnessing rapid growth fueled by technological developments and increasing demand from various industries such as semiconductor production, aerospace, automotive, and healthcare. With the rise of condition monitoring and the need to address flaws in critical systems, signal generators, mechanical test equipment, force gauges, and torque meters play crucial roles in ensuring quality and reliability. Additionally, application-specific test equipment and integrated circuit (IC) testers are essential for electronics production and semiconductor testing. Environmental test chambers are indispensable for testing products in extreme conditions, while calibration, repair, and rental services cater to diverse industry needs. As the market evolves, advancements in wireless device testers and remote sensor connections further enhance efficiency and accuracy in industrial solutions and factory automation, supporting sectors like machine control and healthcare.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.27% |
Market growth 2023-2027 |
USD 2.56 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.03 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantest Corp., Agilent Technologies Inc., Anritsu Corp., Bruker Corp., Cohu Inc., EXFO Inc., Fortive Corp., Hitachi Ltd., HORIBA Ltd., Keysight Technologies Inc., National Instruments Corp., NetScout Systems Inc., Oxford Instruments plc, Renishaw Plc, Rohde and Schwarz GmbH and Co. KG, Spirent Communications plc, Teradyne Inc., Thermo Fisher Scientific Inc., 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 Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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