Global Testing Equipment and Services market was valued at US$443.651 billion in 2019. Strict regulations regarding quality inspection and testing services is the major driver of global testing and equipment market. Additionally, penalties are imposed on firms for not conforming to the guidelines and regulations that are in place by government organizations to prevent any mishap or accident that can be caused to the consumer due to poor quality products. For example, federal law in the U.S. requires both manufacturers and importers to test consumer products for compliance with consumer product safety requirements and must certify that product as compliant with the applicable consumer product safety requirements in an electronic or a written certificate. As such, these laws across different regions/countries are pushing manufacturers to make products in compliance with the set regulations and guidelines by using required testing equipment and services, thereby bolstering the global testing and equipment services market growth. Companies across various end-user industries are increasingly demanding testing equipment and services in order to ensure that the product manufactured is of premium and utmost quality so that it does not deteriorate easily and is able to meet the needs of the consumer.
Global market players are increasingly involved in various growth strategies including product launch and partnerships in order to expand their market reach while gaining a larger market share. For example, in October 2019, Hioki, one of the leading companies dealing in electrical measuring instruments, announced the launch of their new product “ In-Circuit Tester FA1220”. This new product is a board testing system which is compact and modular and capable of facilitating the testing of a variety of electronic components. The testing system can easily be embedded in any of the automated testing equipment in order to enhance its capabilities and further the development of a smart factory. In addition, it is able to deliver approximately thrice the number of testing points per unit installed in comparison to their earlier model “In-Circuit HiTester 1220-50’. Recently, in March 2020, Construction Equipment Magazine has announced that they have entered into a partnership agreement with Baromitr, for the basic purpose of offering and providing a data-driven solution, which is able to provide the critical age and benchmark the usage of the fleet to the equipment managers. This service enables the managers to effectively and discretely upload the fleet data and in turn receive insights regarding the relative age and usage of the most used machines.
The global testing equipment and services market is segmented by offering, end-user industry, and geography. By offering, the market is segmented as equipment and services. By the end-user industry, the segmentation of global testing equipment and services is done as aerospace, automotive, consumer electronics, energy and power, construction, and others.
Consumer Electronics to hold a significant market share
The consumer electronics industry is expected to hold a significant market share over the forecast period, which is attributable to the fact that there is an increasing demand for advanced consumer electronics devices among consumers due to increasing disposable income. Additionally, miniaturization of electronics and electrical components is also boosting the demand for testing equipment and services to test the working and efficiency of these small and complex parts.The global automotive industry is estimated to witness a decent CAGR between 2020 and 2025 on the account of the major technological changes in the automobiles, with the growing number to complex parts, which require effective testing equipment and services in order to test the safety and durability of the new and advanced features.
APAC to experience noteworthy CAGR during the projected period
Geographically, global testing equipment and services market is segmented as North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). The North American regional market is estimated to hold a significant market share throughout the forecast period on account of strict regulations regarding equipment testing in countries like the U.S. and Canada. Strict regulations regarding quality and testing inspection across various industry verticals is attracting market players to keep expanding their reach in this country. The high adoption rate of industrial automation coupled with growing industries such as automotive, aerospace, and oil and gas in North American countries is attracting market players to expand their customer base in this region, thereby driving the regional market growth of testing equipment and services. For example, in January 2019, the global testing, inspection, and certification company Applus+ acquired US-based NDT specialist for the aerospace sector, Talon Test Laboratories, to strengthen its presence in the country while broadening its network and range of NDT products and services in this strategic field.
Asia Pacific testing equipment and services market will witness a substantial market growth rate during the forecast period owing to the high volume of manufacturing of consumer electronics in countries like China and India. Furthermore, the market players are investing in APAC countries to reap the benefits and provide state-of-the-art testing services and equipment. For instance, in June 2019, HORIBA MIRA, one of the leaders in automotive engineering, testing, and development, announced the launch of its “Vehicle Engineering and Consultancy Services through its branch HORIBA India in the country. HORIBA also added around £6.5 million investments into its HORIBA India Technical Center (HITC), which is an advanced and new automotive test facility located in Pune. These new services by HORIBA India are in complete compliance with the government initiatives and regulations, such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and BS-VI (Bharat Stage 6).
Market Players and Competitive Intelligence
Prominent key market players in the global testing equipment and services market include MTS Systems Corporation,National Instruments, ATA Engineering, Inc., SGS SA, HORIBA MIRA Ltd, and Brüel & Kjæramong others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global testing equipment and services market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.