Electrical Test Equipment Market Size

Electrical and Electronic Test Equipment Market Analysis

The electrical and electronic test equipment market was valued at USD 13.81 billion in the previous year and is expected to register a CAGR of 4.29%, reaching USD 17.48 billion over the forecast period.

• Electrical and electronic test equipment are tools used to measure, test, diagnose, and troubleshoot various aspects of electrical and electronic systems. These equipment help 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 growth in adopting 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 studied.
• 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). The majority of developing nations, such as India, have been very price-sensitive, which makes them keep the prices of testing services to be significantly low. This further leads to the presence of many old, refurbished, non-calibrated instruments operating in the market that provide inaccurate measurements. Moreover, resistance towards increased cost and new products is another issue as developing a new product needs huge capital, and 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 as the last priority item.
• The COVID-19 pandemic influenced the overall semiconductor manufacturing market from the demand and supply sides. In addition, the global lockdowns and closure of semiconductor plants also fueled the supply shortage. The effects were also reflected in the studied market. However, many of these effects were short-term. Precautions by governments worldwide to support automotive and semiconductor sectors helped revive industry growth.