Market Trends of Test And Measurement Industry
Semiconductor and Electronics Expected to Hold Major Major Market Share
- Semiconductor manufacturing firms are increasingly adopting automated test equipment (ATE) to boost operational speed and cut costs, a trend likely to propel the market’s growth.
- Semiconductor automated test equipment (ATE) tests a wide range of electronic devices and systems. These range from basic components like resistors, capacitors, and inductors to intricate integrated circuits (ICs), printed circuit boards (PCBs), and fully assembled electronic systems. Extensively used in the electronic manufacturing sector, ATE examines components and systems after fabrication. With the semiconductor industry's growth, the demand for ATE is set to surge.
- The semiconductor industry, a cornerstone of modern technology, is on a rapid growth trajectory. The Semiconductor Industry Association (SIA) reported that global sales for the semiconductor industry reached USD 149.9 billion in Q2 2024. This marked an 18.3% rise from Q2 2023 and a 6.5% increase from Q1 2024. Such developments signal a burgeoning demand for test and measurement equipment in the semiconductor realm.
- Emerging technologies like IoT, Big Data, and artificial intelligence (AI) are driving heightened demands for chips with superior power performance, efficiency, and quicker market entry. This evolving landscape is poised to be a pivotal factor in the growth of the semiconductor testing equipment market.
- Given these dynamics, the chip manufacturing sector is poised to ramp up its demand for testing and measurement equipment. Such tools not only help in curbing manufacturing costs but also play a crucial role in identifying and eliminating faulty devices. Semiconductor firms are intensifying their focus on refining fabrication technologies and adopting efficient testing methods to mitigate losses. Moreover, advancements in smartphones, tablets, and SoC-based products are fueling the demand for enhanced functionalities in the market.
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Asia-Pacific Expected to Hold Major Market Share
- The Asia-Pacific region is a powerhouse in the semiconductor and electronics industry, largely due to the robust manufacturing bases in China, Japan, South Korea, and India. Notably, China's manufacturing prowess stands out, accounting for 28.4% of the global output, translating to an impressive value of nearly USD 4 trillion, as reported by the United States Statistics Division.
- Major players like Foxconn Technology Group and Megatron Asia Pacific Ltd are establishing plants in India. As per IBEF, India aims for an ambitious target of USD 300 billion for electronics manufacturing and exports worth USD 120 billion by the fiscal year 2025-26. Supporting this vision, the Union Budget for 2023-24 has earmarked a substantial INR 16,549 crore (approximately USD 2 billion) for the Ministry of Electronics and Information Technology, marking a 40% increase from the previous year.
- With the region ramping up its testing and inspection activities, there's a burgeoning demand for electrical test equipment. Traditionally, regional firms managed testing and certification in-house. Yet, with the advent of China's Compulsory Certification regulations, there is a heightened focus on stringent regulatory standards. This shift has not only amplified the outsourcing of testing services but has also spurred a surge in demand for test equipment among these service providers.
- Beyond the consumer electronics realm, the region sees a dominance of low-cost carriers. Consequently, many inspection and service activities are outsourced, positioning Singapore as a pivotal hub for maintenance and inspection services. Players based in Singapore have held a commanding presence in the region for over 20 years, though nations like Indonesia, Vietnam, and Thailand are emerging challengers.
- The region is home to several industry stalwarts, including Yokogawa, Advantest Corp., and Anritsu Corporation from Japan, Rigol Technologies from China, and ScienceTech Technologies from India. These entities, alongside numerous others, are at the forefront of product innovations, catering to diverse industry applications.
- Highlighting this trend, in August 2023, Yokogawa Test & Measurement Corporation unveiled its DLM5000HD series high-definition oscilloscopes. This new series, an advanced iteration of the DLM5000 lineup, boasts models with 500 MHz and 350 MHz frequency bandwidths, ensuring superior resolution for precise waveform analysis. Enhanced usability features further simplify the setup process.
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