Global testing equipment and services market was valued at US$403.989 billion in 2020. Strict regulations regarding quality inspection and testing services are the major driver of the 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 written certificate.
As such, these laws across different regions and 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 of the 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 launches and partnerships, in order to expand their market reach while gaining a larger market share.
For instance, in October 2019, Hioki, a leading enterprise dealing in electrical measuring instruments, launched a new offering “In-Circuit Tester FA1220”. The new offering was a board testing system that 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 and optimize its capabilities and further the development of a smart factory. Furthermore, it can also deliver approximately three times the number of testing points per unit installed in comparison to their earlier model “In-Circuit HiTester 1220-50’. Construction Equipment Magazine recently 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 into equipment and services. In the end-user industry, the segmentation of global testing equipment and services is done as follows: aerospace, automotive, consumer electronics, energy and power, construction, and others.
Consumer electronics will have a sizable market share.
The consumer electronics industry is expected to hold a significant market share over the forecast period. This positive upward trend in the market is attributed to the growing demand for advanced consumer electronics devices among consumers with rising disposable income. Additionally, the miniaturization of electronics and electrical components is also fueling the demand for testing equipment and services to test the working and efficiency of such tiny and complicated structures. The global automotive industry is estimated to witness a decent CAGR between 2020 and 2025 on account of the major technological changes in automobiles, with the growing number of complex parts, which require effective testing equipment and services in order to test the safety and durability of the new and advanced features.
During the forecast period, APAC will experience a significant CAGR
Geographically, the global testing equipment and services market is segmented as follows: North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). The North American market is estimated to hold a dominant market share during the projected period due to the enforcement of strict regulations for equipment testing in countries like the U.S. and Canada. Strict regulations regarding quality and testing inspections across various industry verticals are 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 a 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.
The Asia-Pacific testing equipment and services market will witness a substantial market growth rate during the forecast period owing to the high volume of consumer electronics manufacturing 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 in 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, and Brüel & Kjær among 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 positions and strategies. The report also mentions recent deals and investments by different market players over the last two years.
Key Developments in the Market:
COVID-19 had a negative impact on the global testing equipment and services market. The rise in active cases mandated lockdown and social distancing measures had led to the closure of several production facilities across multiple industries, reducing the decline. Subsequently, the global testing equipment and services market witnessed a decline in the-industries like aerospace, automobiles, and construction, among a few others. However, at the same time, the market witnessed a surge in demand in the healthcare sector owing to the production of drugs, diagnostic kits, and medical equipment to tackle the rapidly spreading infections.
|Market size value in 2020||US$403.989 billion|
|Growth Rate||CAGR during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Offering, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||MTS Systems Corporation, National Instruments., ATA Engineering, Inc., SGS SA, Brüel & Kjær, OROS, BAMR (Pty) Ltd, ATESTEO GmbH & Co. KG, ETI Precision|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global testing equipment and services market?
A1. The global testing equipment and services market was valued at US$403.989 billion in 2020.
Q2. Who are the major players in the testing equipment and services market?
A2. Prominent key market players in the global testing equipment and services market include MTS Systems Corporation, National Instruments, ATA Engineering, Inc., SGS SA, and Brüel & Kjær among others.
Q3. How are the global testing equipment and services market segmented?
A3. The testing equipment and services market is segmented by offering, end-user industry, and geography.
Q4. What factors are anticipated to drive the testing equipment and services market growth?
A4. Strict regulations regarding quality inspection and testing services are the major driver of the global testing equipment and services market.
Q5. Which region holds the largest market share in the testing equipment and services market?
A5. 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.
MTS Systems Corporation
ATA Engineering, Inc.
ATESTEO GmbH & Co. KG
BAMR (Pty) Ltd
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