Failure Analysis Market Size and Share
Failure Analysis Market Analysis by Mordor Intelligence
The Failure Analysis Market size is estimated at USD 5.31 billion in 2025, and is expected to reach USD 7.65 billion by 2030, at a CAGR of 7.56% during the forecast period (2025-2030). Persistent growth rests on rising precision-diagnostics demand in semiconductor manufacturing, aging industrial infrastructure that mandates deeper inspection routines, and the steady shift to nanoscale devices where conventional test methods lose resolution. Intensifying supply-chain localization, most visibly under the U.S. CHIPS Act and similar initiatives elsewhere, accelerates in-house analytical-lab adoption inside fabs, creating parallel demand for compact, automated tools. Equipment vendors are responding with dual-beam platforms and AI-assisted workflows that shorten root-cause cycles, while asset-heavy sectors such as oil and gas adopt predictive protocols to curb costly downtime events. Asia-Pacific remains the epicenter of capital expenditure, helped by government subsidies and its dense foundry network, whereas North America leverages policy incentives to reshore capacity and tighten intellectual-property control.
Key Report Takeaways
- By technology, Secondary Ion Mass Spectrometry led with 29.11% of the failure analysis market share in 2024, while Focused Ion Beam systems are set to post the fastest 8.52% CAGR through 2030.
- By equipment, Scanning Electron Microscopes accounted for a 33.41% slice of the failure analysis market size in 2024; dual-beam systems are forecast to increase at a 7.91% CAGR during 2025-2030.
- By end-user industry, electronics and semiconductors held 41.23% of the failure analysis market share in 2024, and automotive applications are poised for the strongest 8.23% CAGR to 2030.
- By geography, Asia-Pacific commanded 47.15% of the failure analysis market in 2024 and is projected to grow at an 8.05% CAGR through 2030.
Global Failure Analysis Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Aging infrastructure and growing maintenance | +1.2% | North America, Europe | Long term (≥ 4 years) |
| Advancements in analytical tools | +1.8% | Asia-Pacific manufacturing hubs | Medium term (2-4 years) |
| Materials, design and production innovation | +1.1% | Asia-Pacific core; spill-over to North America | Medium term (2-4 years) |
| Miniaturization of electronic components | +1.5% | Global semiconductor regions | Long term (≥ 4 years) |
| AI-driven root-cause analytics | +0.9% | North America, Europe early; Asia-Pacific scaling | Short term (≤ 2 years) |
| Supply-chain localization of FA laboratories | +1.0% | Policy-driven in North America and Europe; strategic in China | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Ageing Infrastructure and Increasing Maintenance Needs
Corrosion-related failures cost the oil and gas sector USD 1.372 billion each year, a burden that is steering operators toward predictive failure analysis programs that detect degradation before unplanned shutdowns.[1]Abdulaziz Khattak, “Corrosion in the Oil and Gas Industry: A Costly Challenge,” Oil & Gas News, ognnews.com Deep-learning-enabled finite-element models are now embedded into pipeline-integrity routines, replacing slower manual inspections and cutting diagnostic time in harsh operating zones. Similar patterns appear in aging discrete-manufacturing equipment, where nanoscale materials analysis helps extend tool life and prevent multi-million-dollar production halts. Utilities, refineries, and transportation infrastructure owners increasingly embed scanning-electron-microscopy checks in scheduled maintenance, illustrating how industrial asset longevity fuels recurring demand across the failure analysis market.
Technological Advancements in Failure-Analysis Tools
AI-assisted image-recognition now segments complex defect patterns in minutes, slashing analysis-cycle time from weeks to hours. ZEISS demonstrated an automated Crossbeam FIB-SEM that can autonomously mill, image, and classify faults in 3D NAND stacks, shaving 60% off typical turnaround schedules. TESCAN’s expansion in Taiwan further underscores toolmakers’ push into advanced-packaging nodes that require resolution below 10 nm. Real-time analytics embedded directly on the tool allow immediate process-window corrections inside fab lines, effectively relocating failure analysis from separate laboratories to production floors. Advancements in detectors, ion columns, and high-brightness sources also extend the field-of-view without compromising resolution, fostering multimodal workflows that merge secondary-ion and X-ray spectrometry in a single pass.
Innovation in Materials, Design and Production Methods
Electric-vehicle power modules based on silicon-carbide switches reveal failure signatures distinct from legacy silicon devices, demanding specialized wafer-level burn-in and cross-sectional assessments to isolate crystalline defects. Through-silicon-via and redistribution-layer structures inside advanced packages introduce thermo-mechanical stress gradients that traditional planar inspection cannot resolve, prompting wider adoption of 3D tomography and FIB-SEM trenching for root-cause isolation. Concurrently, additive-manufactured components in aerospace systems bring novel porosity-driven failures, expanding the application canvas for high-resolution acoustic microscopy and micro-computed tomography. As heterogeneous integration proliferates, materials innovation keeps adding new unknowns, preserving momentum for the failure analysis market.
Miniaturization of Electronic Components Boosts Demand
Sub-3 nm logic and 3D-stacked DRAM intensify the need for atomic-level inspection where a single device houses billions of transistors. Atomic-force microscopy, scanning-probe nano-electrical measurements, and near-field optical techniques now complement classic electron microscopy to pinpoint sub-nanometer anomalies azonano.com. In 3D architectures, interfaces across multiple deposition steps can harbor latent defects that only manifest during thermal stress; failure analysis teams respond with site-specific lamella preparation and cryogenic TEM imaging to maintain structural integrity. Precision grows even more critical as next-generation memory devices push toward 700-plus wafer layers, elevating the strategic relevance of failure analysis.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High equipment acquisition and ownership cost | -1.8% | Global; acute in emerging markets | Long term (≥ 4 years) |
| Shortage of skilled professionals | -1.4% | North America, Europe | Medium term (2-4 years) |
| Long turnaround time for complex analyses | -0.8% | Manufacturing-intensive Asia-Pacific | Short term (≤ 2 years) |
| IP-protection limits on cross-border samples | -0.6% | U.S.–China technology corridors | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Acquisition and Ownership Cost of Equipment
A state-of-the-art dual-beam FIB-SEM can command several million USD and requires vibration-isolated rooms with strict environmental controls, doubling the lifetime investment once maintenance, consumables, and facility retrofits are factored in.[2]U.S. National Institute of Standards and Technology, “Construction and In-Service Failures,” nist.gov Budget-constrained enterprises often resort to outsourcing, introducing logistics delays and potential confidentiality issues. Tool vendors are countering with modular systems, shared-facility business models, and subscription-based ownership structures that spread capital outlays and democratize access.
Shortage of Skilled Failure Analysis Professionals
Universities graduate too few engineers trained in the cross-disciplinary mix of materials science, electron optics, and data analytics. Industry surveys show vacancy rates that outpace talent supply, driving up wages and elongating hiring cycles. Equipment makers embed automated fault-classification engines to lower operator dependency, yet complex failure interpretation still benefits from human expertise. Regional upskilling programs keyed to semiconductor workforce development aim to narrow the gap but will take years to stabilize talent pipelines.
Segment Analysis
By Technology: SIMS Dominates While FIB Accelerates
SIMS held 29.11% of the failure analysis market share in 2024, favored for dopant-profiling accuracy that scales into single-digit nanometers. The failure analysis market size tied to Focused Ion Beam tools is on course for an 8.52% CAGR, propelled by demand for site-specific cross-sectioning during 3D-device diagnostics. Hybrid platforms that merge SIMS, EDX, and time-of-flight mass spectrometry on the same stage now shorten workflow steps and improve data correlation. Emerging Relative Ion Etching complements MEMS and advanced-materials projects that need depth-resolved compositional profiling without masking artifacts. Over the next five years, AI-assisted routine-spectra interpretation will extend usability to mid-tier fabs, expanding the addressable base for SIMS while reinforcing FIB traction in automated defect isolation.
Wider 3D packaging adoption also lifts scanning-probe methodologies, especially for quantum-device development that hinges on atomic-scale surface fidelity. As photonics-integrated circuits enter mass production, ultraviolet laser-assisted SIMS steps in to map low-signal defects. Collectively, technology diversification will sustain double-digit tool refresh cycles and anchor continuous investment in the failure analysis market.
Note: Segment shares of all individual segments available upon report purchase
By Equipment: SEM Leadership Challenged by Dual-Beam Innovation
Scanning Electron Microscopes accounted for 33.41% of the 2024 equipment revenue owing to broad applicability and lower cost of ownership relative to specialty systems. Nevertheless, the failure analysis market size associated with dual-beam units is projected to rise at a 7.91% CAGR as single-platform workflows replace multi-tool handoffs. Automated stage alignment, machine-vision-guided milling, and in-situ energy-dispersive detectors collapse analysis sequence times and improve repeatability.
Transmission Electron Microscopes remain indispensable for lattice-level assessment, particularly in power devices that require defect classification of stacking faults and dislocations. Compact, plasma-based FIB columns offer higher material-removal rates, helping labs prepare ultra-thin TEM lamellae in minutes rather than hours. Portable SEMs and acoustic microscopes win adoption for on-site inspections in aerospace hangars and energy installations, validating a parallel shift toward edge-deployed diagnostics in the failure analysis market.
By End-User Industry: Electronics Dominance Meets Automotive Acceleration
Electronics and semiconductors captured 41.23% of 2024 spending, a volume tied to tight yield-control loops in logic and memory manufacturing. The automotive segment is projected to exhibit an 8.23% CAGR to 2030 as electric-vehicle power stages and advanced driver-assistance electronics raise qualification bars.[3]John Wesling, “Heterogeneous Integration Roadmap: Automotive Chapter,” IEEE Electronics Packaging Society, ieee.org Oil and gas operators maintain steady engagement for corrosion and fatigue investigations, while defense programs rely on counterfeit-component screening to preserve mission reliability.
Industry 4.0 integration lets discrete-manufacturing plants deploy inline acoustic microscopy and SEM tools to catch latent process escapes, improving overall equipment effectiveness and supporting predictive-maintenance strategies. Renewable-energy domains introduce fresh demand nodes, such as photovoltaic cell degradation mapping and wind-turbine composite-blade inspection, expanding the functional horizon of the failure analysis market.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific held 47.15% of global revenue in 2024 and is forecast to grow at 8.05% CAGR through 2030, bolstered by concentrated foundry capacity and national subsidies that target semiconductor self-sufficiency. Japan earmarked JPY 3.9 trillion (USD 25.7 billion) to lift domestic output, sparking a surge in regional tool installations and specialized-service inquiries.[4]Kei Sakuma, “Peak Silicon Cycle Possibility,” Dai-ichi Life Research Institute, dlri.co.jp China’s localization strategy keeps domestic tool vendors and overseas suppliers occupied, even amid export-control headwinds. South Korea’s memory leadership and Taiwan’s advanced-logic dominance reinforce steady procurement of next-generation analytical platforms.
North America ranks second as the CHIPS and Science Act allocates USD 52 billion in grants and tax incentives, motivating new fabs that embed in-house failure analysis laboratories during planning phases. Electric-vehicle supply-chain growth around the Great Lakes and U.S. Southwest further increases regional demand for power-device reliability studies. Europe follows with strong adoption in Germany’s automotive and industrial-automation clusters, where ISO 9001 compliance drives systematic defect-prevention cycles.
Middle East and Africa exhibit emerging traction, primarily tied to oil-and-gas pipeline integrity programs and early moves to build semiconductor ecosystems under policy umbrellas such as Saudi Arabia’s Vision 2030 semiconductor hub. South America remains a smaller market but shows promise in mining-equipment fault diagnostics and renewable-energy component analysis, leading multinational tool vendors to explore distributor partnerships
Competitive Landscape
The failure analysis market is moderately fragmented, yet consolidation is rising as toolmakers acquire data-analytics specialists to enhance end-to-end offerings. Cohu’s late-2024 purchase of Tignis, an artificial intelligence (AI)-driven process-control platform, augments real-time fault prediction for back-end probers and handlers, underscoring a strategy to embed analytics across the semiconductor manufacturing chain.[5]Cohu Inc., “Cohu Enhances AI/ML Platform with Tignis Acquisition,” cohu.com Source: SEMI Industry Association, “Total Semiconductor Equipment Sales Forecast,” semi.org ZEISS and Thermo Fisher Scientific each bundle machine-learning toolkits with electron-beam systems to alleviate operator shortages and guarantee throughput consistency.
TESCAN’s 2025 establishment of a Taiwan subsidiary focuses on advanced packaging, illustrating how niche specialists carve share by localizing support near emerging technology nodes. Meanwhile, Hitachi High-Tech exploits a broad instrument lineup to serve both legacy fabs and high-k/metal-gate nodes, leveraging cross-tool correlations. Service providers differentiate through expertise in silicon-carbide device diagnostics or counterfeit-component detection, fields where domain knowledge trumps raw tool count. Given the top five players collectively control roughly 45% of revenue, competition remains open, spurring continuous product refresh and workflow innovation.
Failure Analysis Industry Leaders
-
Presto Engineering Inc
-
TUV SUD
-
Rood Microtec GmbH
-
Eurofins EAG Laboratories
-
SGS SA
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: TESCAN opened a Taiwan subsidiary to deliver AI-enabled failure-analysis solutions tailored to complex multi-layer semiconductor packages; the move aligns capacity with local demand and shortens service lead times
- December 2024: Cohu acquired Tignis to integrate predictive-analytics software into its semiconductor process-control portfolio, aiming to offer customers closed-loop fault-prevention capabilities that reduce scrap rates
- October 2024: ZEISS displayed AI-powered Crossbeam 550 FIB-SEM and VersaXRM 730 X-ray microscope at ISTFA, underscoring a product-roadmap emphasis on automated 3D defect visualization
Global Failure Analysis Market Report Scope
Failure analysis is an investigation of failure, which generally aims at identifying the cause and taking appropriate measures to correct it or mitigate its consequences. For the prevention of future asset and product failures, as well as to mitigate potential dangerous hazards for humans and the environment, failure analysis is carried out at all parts of the industrial sector, such as oil and gas, aerospace and defense, engineering and fabrication, power, marine, rail, automotive, electronics and sensors, medical equipment, etc.
The failure analysis market is segmented by technology (secondary ion mass spectrometry (SIMS), energy dispersive X-ray spectroscopy (EDX), chemical mechanical planarization (CMP), scanning probe microscopy, focused ion beam (FIB), relative ion etching (RIE) and other technology types), equipment (scanning electron microscope (SEM), focused ion beam (FIB) system, transmission electron microscope (TEM), and dual beam system, other equipment), end-user vertical (automotive, oil and gas, defense, construction, manufacturing, electronics and semiconductors and other end-user verticals), and geography (North America, Europe, Asia-Pacific, Latin America and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Secondary ION Mass Spectrometry (SIMS) |
| Energy Dispersive X-ray Spectroscopy (EDX) |
| Chemical Mechanical Planarization (CMP) |
| Scanning Probe Microscopy |
| Focused Ion Beam (FIB) |
| Relative Ion Etching (RIE) |
| Other Technologies |
| Scanning Electron Microscope (SEM) |
| Focused Ion Beam (FIB) System |
| Transmission Electron Microscope (TEM) |
| Dual Beam System |
| Other Equipment's |
| Automotive |
| Oil and Gas |
| Defense |
| Construction |
| Manufacturing |
| Electronics and Semiconductors |
| Other End-user Industries |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| Singapore | ||
| Australia | ||
| Malaysia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Rest of Africa | ||
| By Technology | Secondary ION Mass Spectrometry (SIMS) | ||
| Energy Dispersive X-ray Spectroscopy (EDX) | |||
| Chemical Mechanical Planarization (CMP) | |||
| Scanning Probe Microscopy | |||
| Focused Ion Beam (FIB) | |||
| Relative Ion Etching (RIE) | |||
| Other Technologies | |||
| By Equipment | Scanning Electron Microscope (SEM) | ||
| Focused Ion Beam (FIB) System | |||
| Transmission Electron Microscope (TEM) | |||
| Dual Beam System | |||
| Other Equipment's | |||
| By End-user Industry | Automotive | ||
| Oil and Gas | |||
| Defense | |||
| Construction | |||
| Manufacturing | |||
| Electronics and Semiconductors | |||
| Other End-user Industries | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| Singapore | |||
| Australia | |||
| Malaysia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What was the global revenue of the failure analysis market in 2025?
The failure analysis market size reached USD 5.51 billion in 2025.
Which region accounts for the largest share of failure analysis spending?
Asia Pacific led with 47.15% of global revenue in 2024 and is also the fastest-growing region.
Which technology segment is expanding the quickest?
Focused Ion Beam platforms are forecast to post an 8.52% CAGR between 2025 and 2030.
Why is the automotive sector a high-growth end-user?
Electric-vehicle power electronics and autonomous-driving systems demand stringent reliability checks, driving an 8.23% CAGR in automotive applications to 2030.
What is the effect of supply-chain localization on the market?
National incentives such as the CHIPS Act are prompting in-house failure-analysis labs, spurring demand for compact, automated equipment.
Page last updated on: