Electrical Test Equipment Market Size (2024 - 2029)

Electrical Test Equipment Market Analysis

The Electrical Test Equipment Market size is estimated at USD 15.02 billion in 2024, and is expected to reach USD 18.53 billion by 2029, growing at a CAGR of 4.29% during the forecast period (2024-2029).

• Electrical and electronic test equipment are tools used to measure, test, diagnose, and troubleshoot various aspects of electrical and electronic systems. This equipment helps ensure the proper functioning, safety, and performance of electronic devices, circuits, and components. Test equipment helps simulate the real-time environment as closely as possible to verify the device under test (DUT).
• Testing equipment is as important as the device itself. All electronic equipment tends to wear out over time due to heating, moisture, shock, or vibration. This can lead to performance degradation. Therefore, every electronic testing facility must have the required equipment, whether a simple multimeter or a complex oscilloscope.
• The increasing need for accuracy and speed in designing, manufacturing, or repairing electronic products is one of the major factors driving the demand for electric and electronic test equipment across industries. The increase in the adoption of new and connected electronic devices and emerging advanced technologies, such as electric vehicles, autonomous driving, and 5G, is also fueling the demand in the market.
• For instance, the risk associated with battery-electric vehicles is catching fire due to thermal runaway, where damage to the battery leads to uncontrollable overheating. Moreover, many electric vehicles (EVs) that caught fire used more temperature-sensitive battery chemistry called NMC. To use a more temperature-sensitive battery, no design measures were taken to ensure that it’s thermally cooled properly at the battery pack level. By employing rigorous electrical and electronic testing practices, manufacturers and engineers can optimize the performance and safety of electric vehicles.
• Moreover, the increasing deployment of autonomous driving will demand the use of test equipment to ensure that autonomous driving systems are reliable, safe, and capable of making split-second decisions in complex environments. These testing processes are essential to bring autonomous vehicles to the roads with high confidence in their performance and safety.
• Like other markets, the electrical and electronics test equipment market also has some challenges to overcome, and fierce price competition has been one of the key issues for original equipment manufacturers (OEMs). Most developing nations, such as India, are very price-sensitive, which makes them keep the prices of testing services significantly low. This further leads to the presence of many old, refurbished, non-calibrated instruments operating in the market that provide inaccurate measurements.
• Resistance toward increased cost and new products is another issue, as developing a new product requires huge capital. When it comes to procurement, it has been observed that the customers are not willing to pay well for such equipment, and sometimes it is considered the last priority item.
• The COVID-19 pandemic influenced the overall semiconductor manufacturing market on both the demand and supply sides. The global lockdowns and closure of semiconductor plants led to a supply shortage. The effects were also reflected in the market. However, many of these effects were short-term. Precautions by governments worldwide to support the automotive and semiconductor sectors helped revive the market.

Electrical Test Equipment Industry Segmentation

Electrical and electronic test equipment includes a wide range of tools and instruments used to measure, diagnose, test, and troubleshoot electrical and electronic systems and devices. They are used to measure electrical parameters such as voltage, current, resistance, capacitance, and frequency.

The electrical and electronic test equipment market is segmented by type (semiconductor automatic test equipment (ATE), radio frequency (RF) test equipment, digital test equipment, electrical and environmental test, and data acquisition (DAQ)), end-user industry (communications, semiconductors and computing, aerospace and defense, consumer electronics, electric vehicles (EVS), and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.