Failure Analysis Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Failure Analysis Market is Segmented by Technology (Secondary ION Mass Spectrometry (SIMS), Chemical Mechanical Planarization (CMP), Energy Dispersive X-ray Spectroscopy (EDX)), Equipment (Scanning Electron Microscope (SEM), Focused ION Beam (FIB), Transmission Electron Microscope (TEM), Dual Beam System), End-user Vertical (Automotive, Oil and Gas, Defense, Construction, Manufacturing), and Geography.

Market Snapshot

failure analysis market
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 8.14 %
failure analysis equipment market

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Market Overview

The failure analysis market (henceforth referred to as the market studied) was valued at USD 4.10 billion in 2021. It is projected to be worth USD 6.58 billion by 2027, registering a CAGR of 8.14% during the forecast period (2022-2027). The increasing requirement for failure analysis among automobile manufacturers who are also employing vision and AI-based analysis tools for performance analysis, dynamic vehicle studies, accident reconstruction, etc., is augmenting the market’s growth.

  • Failure analysis is the process of gathering and analyzing data to determine the cause of failure to determine corrective actions or liability. It is crucial to understand the root cause of failure to prevent similar incidents in the future. Some of the common causes include assembly error, misuse or abuse, fastener failure, inadequate maintenance, manufacturing defects, low-quality material, improper heat treatments, unforeseen operating conditions, design errors, insufficient quality assurance, inadequate environmental protection, and casting discontinuities.
  • Automation across the end-user industries fueled the development in the market studied. Companies developing batteries for electric vehicles, mobile phones, energy systems, and other systems rely on testing to enhance the output, creating a more efficient, cleaner, and safer energy source. Companies use electron microscopy technologies to understand structures that level down at the atomic scale. They also use spectroscopy tools to discover critical changes in materials that cause defects and inefficiency.
  • Several solution providers are innovating to provide effective and advanced failure analysis solutions in the industry. For instance, in February 2021, SGS announced an investment in Secondary ION Mass Spectrometry equipment at its Fujairah laboratory to test marine fuels for various chemical species, which suggests contamination of the fuel with chemical waste components. One area where failure analysis is used extensively in finding the cause of vehicular accidents. Private and commercial vehicle accidents can result in severe property damage, bodily injury, and even loss of life.
  • The outbreak of the COVID-19 significantly disrupted the supply chain and production of semiconductor and electronic devices in the initial phase of 2020. For circuits and chipmakers, the impact was more severe. Due to labor shortages, many of the package and testing plants in Asia-Pacific reduced or even suspended operations, creating a bottleneck for companies that depend on failure analysis of these devices.​

Scope of the Report

Failure analysis is the systematic investigation of a part failure to determine the root causes of failure and the corrective actions needed to prevent future failures. The failure analysis techniques are used in various end-user verticals like automotive, oil and gas, and defense. The study also analyzes the overall impact of COVID-19 on the market, and the same has been considered while arriving at the current market estimate and the future projections.

By Technology
Secondary ION Mass Spectrometry (SIMS)
Energy Dispersive X-ray Spectroscopy (EDX)
Chemical Mechanical Planarization (CMP)
Other Technologies
By Equipment
Scanning Electron Microscope (SEM)
Focused Ion Beam (FIB) System
Transmission Electron Microscope (TEM)
Dual Beam System
By End-user Vertical
Oil and Gas
Other End-user Verticals
By Geography
North America
Latin America
Middle-East and Africa

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Key Market Trends

Automotive Sector is Driving the Demand for Failure Analysis

  • The automotive industry has constantly faced new challenges as the demand for inexpensive and high-quality components increases. Extreme diligence must be imparted to ensure that such components are designed and manufactured with sufficient quality to withstand various service environments.
  • The automotive industry has witnessed rapid advancement in ADAS systems, connected vehicles, IoT devices, and smart sensors, which could prevent potential accidents due to malfunctioning of some of the vehicle's vital parts. According to a report published by the WHO in July 2021, approximately 1.3 million people lose their lives every year due to a road traffic crash. Between 20 and 50 million more people suffer non-fatal injuries, with many incurring a disability due to their injury.
  • Potential causes for automotive device failure may include product design, manufacturing processes, contamination of the source materials, product packaging, improper handling, and improper calibration. This factor has raised concerns over the quality of automotive parts being manufactured and the preventive measures that can be implemented to avoid such incidents.
  • Recently, Asia-Pacific witnessed considerable growth in the automotive industry due to the increasing demand for passenger and advanced vehicles. However, the passenger vehicles find increased usage due to population density in the region. Therefore, the increasing production of passenger and luxury cars is driving the market’s growth in the region.
  • The automobile component may fail in different failure modes, causing severe accidents. Therefore, it is important to identify the failure mode for which the automobile component fails more frequently.
  • Failure analysis is also done to establish the cause of an accident. The analysis is employed to see which component in the automotive caused the accident.
failure analysis report

North America Occupies the Largest Market Share

  • North America, majorly due to the United States, is one of the earliest adopters of failure analysis techniques, originally introduced to ensure no significant disruptions occur in the existing business models. The region is home to most of the prominent organizations in the world. For instance, the automotive sector in the country is ruled by General Motors and Ford, which rely heavily on automation.
  • Furthermore, the United States is one of the leaders in terms of crude oil production and has several oil rigs spread out across North America. After the devastating effects of various oil rig accidents, the most notable being the Deepwater Horizon oil spill that occurred in 2010, discharging over 4.5 million barrels of oil into the sea due to a mechanical failure, the need for failure analysis techniques is being felt more acutely.
  • The country has been witnessing critical infrastructure failures for the last few years. In 2021, significant pieces of US infrastructure failed three times, the Texas power grid, the East Coast’s main gasoline pipeline, and a freeway bridge over the Mississippi River. The crises disrupted businesses and lives, cost billions, and led to the death of 150 Texans.
  • To overhaul the US infrastructure, in November 2021, the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) was passed by Congress and signed into law by President Biden, seeking to invest a large amount of investment in critical infrastructure. The deal focuses on key sectors to modernize the country’s infrastructure landscape, including improving and rebuilding roads, public transit, bridges, ports, rail, and airports.
  • Similarly, according to Statistics Canada 2021, Canada invested CAD 81.6 billion in infrastructure assets in 2020, continuing the investment trend in the previous four years. These investments are crucial to address the country’s infrastructure gap, the estimate of which ranges from CAD 150 billion to CAD 1 trillion.
failure analysis market size

Competitive Landscape

The failure analysis market is competitive and consists of several players. These major players with prominent shares in the market are focusing on expanding their operations to different verticals. Many companies are leveraging on strategic collaborative initiatives to increase their market share and profitability. The companies operating in the market are also acquiring firms working on failure analysis to strengthen their product capabilities. Major firms in the market are Exponent Inc., Rood Microtec GmbH, and EAG Inc.

  • December 2021: AEM's Afore Wafer-Level Test Solutions engineering team planned to install and exhibit the AIOLOS Wafer-Level Test Handlers at the RoodMicrotec facility in Nördlingen, as part of a collaboration between RoodMicrotec NV, a leading independent company for semiconductor supply and quality services, and AEM, a global leader in semiconductor test and handling.
  • December 2021: With a new 20,000 square-foot facility in St. Louis, Mo., EAG Laboratories is extending its medical device testing capabilities. The new laboratory was built specifically to meet the needs of the medical device sector. It improves EAG's analytical capabilities, provides faster turnaround times, and aids in meeting growing FDA and European Union Medical Device Regulations criteria (MDR).

Recent Developments

  • September 2021: According to RoodMicrotec NV, a prominent and independent semiconductor supply and quality services firm, the DAkkS accreditation for the operating unit Qualification & Failure Analysis at RoodMicrotec GmbH's two locations in Nördlingen and Stuttgart was renewed.
  • September 2021: MASER Engineering, Europe's technologically leading failure and reliability testing facility, and Eurofins Scientific, an internationally recognized laboratory organization, agreed to sell their interests in MASER Engineering BV to Eurofins Scientific. Current top management will have a minority stake in the company.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Ageing Infrastructure and Increasing Need for Maintenance

      2. 4.3.2 Technological Advancements Drive the Market Growth

      3. 4.3.3 Innovation in Materials, Design, and Production Methods

    4. 4.4 Market Restraints

      1. 4.4.1 High Equipment Cost Challenge the Market

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Industry Value Chain Analysis

    7. 4.7 Assessment of the Impact of COVID-19 on the market


    1. 5.1 Failure Modes Effect Analysis (FMEA)

      1. 5.1.1 Failure Modes, Effects, and Criticality Analysis (FMECA)

      2. 5.1.2 Functional Failure Analysis

      3. 5.1.3 Destructive Physical Analysis

      4. 5.1.4 Physics of Failure Analysis

      5. 5.1.5 Fault Tree Analysis(FTA)

      6. 5.1.6 Other Failure Mode Effect Analysis


    1. 6.1 By Technology

      1. 6.1.1 Secondary ION Mass Spectrometry (SIMS)

      2. 6.1.2 Energy Dispersive X-ray Spectroscopy (EDX)

      3. 6.1.3 Chemical Mechanical Planarization (CMP)

      4. 6.1.4 Other Technologies

    2. 6.2 By Equipment

      1. 6.2.1 Scanning Electron Microscope (SEM)

      2. 6.2.2 Focused Ion Beam (FIB) System

      3. 6.2.3 Transmission Electron Microscope (TEM)

      4. 6.2.4 Dual Beam System

    3. 6.3 By End-user Vertical

      1. 6.3.1 Automotive

      2. 6.3.2 Oil and Gas

      3. 6.3.3 Defense

      4. 6.3.4 Construction

      5. 6.3.5 Manufacturing

      6. 6.3.6 Other End-user Verticals

    4. 6.4 By Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle-East and Africa


    1. 7.1 Company Profiles

      1. 7.1.1 Presto Engineering Inc.

      2. 7.1.2 TV SD Limited

      3. 7.1.3 Rood Microtec GmbH

      4. 7.1.4 EAG Inc.

      5. 7.1.5 MASER Engineering BV

      6. 7.1.6 NanoScope Services Ltd

      7. 7.1.7 CoreTest Technologies

      8. 7.1.8 TEC Materials Testing

      9. 7.1.9 McDowell Owens Engineering Inc.

      10. 7.1.10 Leonard C Quick & Associates Inc.

      11. 7.1.11 Crane Engineering

      12. 7.1.12 Exponent Inc.

    2. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Failure Analysis Market market is studied from 2020 - 2027.

The Failure Analysis Market is growing at a CAGR of 8.14% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Exponent Inc., TEC Materials Testing, EAG Inc., Rood Microtec GmbH, Presto Engineering Inc. are the major companies operating in Failure Analysis Market.

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