Global Modular Instruments Market - Strategic Insights and Forecasts (2025-2030)

Description

Modular Instruments Market Size:

Global Modular Instruments Market is projected to grow at a CAGR of 7.91% between 2025 to 2030.

The Global Modular Instruments Market is experiencing a definitive transformation, moving from a niche component of the broader Test & Measurement (T&M) sector to an essential, high-performance solution across mission-critical industries. The market for modular instruments is anticipated to be driven by the increase in awareness about the devices amongst the end-users. For instance, high channel count; these measurements, such as data acquisition, really benefit from the standards-based modular form factor. The module size is relatively big, so a large number of channels can be included. Data acquisition usually requires many types of channels. Not everything can be purchased from one vendor. The mix-and-match capability of modular instruments allows the system to be easily configured by multiple vendors.

Secondly, automated test systems; these instruments address the needs of automated test systems very well. Automated test systems typically involve many types of instruments. The instruments are driven by software, not directly manipulated by a user. Packaging density is a concern, and the logistics of racking and cabling are as important to system design as making measurements. With modular instruments, modules can be acquired from multiple vendors. Additionally, the space factor, for a given volume and multiple instruments, modular instruments usually create the smallest, most compact solution. These factors have encouraged the adoption of modular instruments over the years and with the rapid pace of technological developments, it is expected to do so in the coming years as well.

Global Modular Instruments Market Analysis

Growth Drivers

The market is propelled by a clear demand imperative from technology-intensive industries. The worldwide rollout of 5G networks and the pursuit of 6G standards create a substantial, direct demand for modular instruments. These new wireless generations necessitate testing devices at increasingly higher frequencies and bandwidths (e.g., millimeter-wave), requiring the precision, multi-channel density, and low latency that PXI and AXIe platforms intrinsically provide for over-the-air and beamforming validation. Furthermore, the rapid growth of the Electric Vehicle (EV) and autonomous vehicle segments fuels demand by requiring specialized, high-power testing solutions for battery management systems (BMS), power electronics, and high-speed vehicle communication buses (e.g., PCI Express-based in-vehicle systems). Modular instruments allow manufacturers to integrate high-voltage and high-current power supplies with precise measurement units for comprehensive and efficient system validation.

• Rising demands from the defense sector at a global level

The growth of the modular instruments market is fuelled by the increasing demands coming from the defense sector of various countries across the world. Modular instruments play a vital role in the aerospace and defence sector owing to complex communication equipment. In the aerospace and defence industry, modular instruments are used for machine vision systems, automatic test equipment, spectrum analyzers, network analyzers, and signal generators, among others. Thus, these instruments are used for ensuring the security and safety of the end-use equipment by checking various sub-systems, components, and systems for communications, tracking, and detection. Additionally, the major purpose of the adoption of modular instruments in the aerospace and defense industry is due to their features, such as lower power consumption and quick measurement of the end-use equipment.

• Increasing adoption of the Internet of Things concept by several industries

The growth of the market of modular instruments will be further fuelled by the increasing adoption of the Internet of Things (IoT) concept by various industries. Similarly, according to GSMA, there would be 30 billion connected devices by 2026. The IoT-connected devices include tracking devices, vehicles, utility meters, consumer electronics, and wearable technology vending machines, as well as smartphones and tablets. Thus, increased adoption of the aforementioned devices has led to the growing need for testing, inspecting, and verifying smart products and other equipment to ensure the fidelity of the deployed devices. Moreover, an increasing number of connected devices results in more spending on testing the feasibility of the devices, thus resulting in the adoption of modular instruments.

Challenges and Opportunities

A primary challenge remains the high initial capital expenditure (CapEx) for advanced modular platforms, which can pose a significant barrier to entry for smaller firms or those in emerging markets, consequently restricting the potential demand base. This is compounded by the dearth of specialized talent required to configure and program complex, software-centric modular test environments, constraining adoption velocity. Conversely, a major opportunity lies in the convergence of hardware with advanced software and Artificial Intelligence (AI). Developing software-defined instrumentation capable of leveraging AI for automated test script generation, predictive maintenance, and real-time data analysis creates an entirely new value proposition. This shift transforms a hardware purchase into an efficiency-driving, end-to-end workflow solution, which directly expands the addressable market beyond traditional T&M users into general manufacturing and industrial automation environments, thereby boosting long-term demand.

Modular Instruments Market Segment Analysis

• By Technology: PXI (PCI eXtensions for Instrumentation)

PXI represents the commercial and technical cornerstone of the modular instrument market. Its dominance is driven by its inherent ability to deliver an exceptionally high-throughput, low-latency backplane based on the widely supported PCI Express bus. This architecture is a primary demand driver in high-channel-count, deterministic test environments, such as semiconductor automated test equipment (ATE) and high-volume Manufacturing & Production Testing. The system’s open, multi-vendor ecosystem encourages fierce competition and a vast array of specialized modules (over 1,500 from 70+ vendors), providing engineers with an unparalleled level of customization. For instance, in power amplifier production testing for wireless devices, a PXI system can simultaneously house a high-speed digitizer, an RF vector signal transceiver, and a source measure unit, all tightly synchronized with picosecond-level timing precision. This integration capability accelerates test times and reduces the footprint compared to a stack of rack-and-stack instruments, making it an economic imperative for companies aiming to reduce cost-of-test and accelerate time-to-market. The platform’s continuous evolution, including leveraging the latest Intel processors in its controllers, ensures its demand remains strong by consistently offering better performance-per-slot.

• By Industry Vertical: Aerospace and Defense

The Aerospace and Defense (A&D) sector constitutes a critical segment where modular instrumentation is not merely a preference but a technical necessity. Demand is fundamentally driven by the sector's stringent requirements for long-term system support, high reliability under extreme conditions, and the need to simulate complex real-world signal environments. A&D programs often have decades-long lifecycles, and the modular, open-architecture VXI and PXI platforms allow systems to be maintained, upgraded, and reconfigured incrementally without full system replacement. This longevity imperative directly drives demand. Furthermore, the development and testing of next-generation radar, Electronic Warfare (EW) systems, and secure communication links require the simultaneous generation and analysis of a high number of tightly synchronized channels, which modular RF and microwave modules deliver with superior density. Compliance with military and government standards (e.g., Mil-Std-810G for ruggedization) necessitates test equipment that can perform accurately in field and simulated harsh operational environments, a capability that key vendors specifically design into their modular A&D-focused products.

Modular Instruments Market Geographical Analysis

• US Market Analysis (North America)

Demand for modular instruments in the United States is primarily fueled by massive, sustained R&D investment in the semiconductor and defense sectors. Government initiatives supporting domestic semiconductor manufacturing and advanced technology development (e.g., Microelectronics Commons program) directly accelerate the need for high-performance ATE, where PXI is the platform of choice for wafer and package-level validation. Furthermore, the Department of Defense's modernization programs for radar, communications, and electronic warfare systems mandate open-architecture, reconfigurable test benches, driving demand for VXI and AXIe platforms from prime contractors. The US market prioritizes high-end performance, synchronization, and software-defined test capabilities.

• Germany Market Analysis (Europe)

The German modular instruments market is robustly driven by the Automotive & Transportation sector, specifically the high-volume production testing of Electric Vehicle (EV) components. Germany's transition toward e-mobility and autonomous driving compels major manufacturers to invest heavily in modular solutions for battery testing, inverter/converter validation, and complex bus simulation (e.g., automotive Ethernet). This creates specific, high-value demand for modular power supplies, source measure units, and high-speed data acquisition modules. Additionally, the industrial automation segment's push toward Industry 4.0 dictates the need for flexible, networked measurement systems, favoring LXI and PXI integration on the factory floor.

• China Market Analysis (Asia-Pacific)

The Chinese market is characterized by unprecedented scale and rapid technological self-sufficiency initiatives, making it the largest volume consumer. Demand is primarily generated by high-volume consumer electronics manufacturing and a rapidly expanding domestic semiconductor industry. Government backing for domestic chip and 5G development acts as a massive demand multiplier, particularly for PXI systems for ATE. The competitive, high-volume manufacturing environment means demand is hyper-sensitive to the cost-of-test and throughput efficiency. This drives fierce competition for modular systems that can reduce test time for complex devices by integrating multi-functional test processes onto a single platform.

Modular Instruments Market Competitive Environment and Analysis

The competitive landscape is dominated by a few multinational technology firms that leverage a combination of proprietary hardware, industry-standard compliance, and extensive software ecosystems. The competition centers not just on hardware specifications but on the seamless integration of instruments with sophisticated application-level software, automation tools, and professional services. Companies compete intensely on providing comprehensive solutions that lower the end-user's overall cost of test and accelerate their product development cycle.

• Company Profile: Keysight Technologies Inc.

Keysight Technologies maintains a strategic positioning as a full-spectrum Test & Measurement leader, leveraging its historical expertise across multiple platforms, including PXI and AXIe. The company's strategy focuses on delivering high-performance, integrated solutions for critical, high-growth segments like 5G/6G, aerospace/defense, and automotive. Keysight’s key products, such as the M9484C VXG Vector Signal Generator and the M8070A Bit Error Ratio Test (BERT) system, utilize modular form factors to achieve best-in-class performance in high-speed digital and RF applications. Its acquisition strategy has centered on integrating software and network emulation capabilities to create end-to-end test platforms, enhancing its value proposition beyond hardware.

• Company Profile: NI (part of Emerson Electric Co.)

NI’s strategic positioning is founded on the PXI platform and its software ecosystem, principally LabVIEW and TestStand. NI is a key proponent of the PXI standard, promoting an open architecture where hardware and software are fully decoupled and user-configurable. This focus on a software-centric, platform-based approach appeals directly to R&D and manufacturing engineers requiring maximum customization and control over their test systems. Key product offerings include a vast portfolio of PXI-based vector signal transceivers, data acquisition (DAQ) modules, and high-channel-count power supplies. Its integration into Emerson Electric Co. following the acquisition enhances its strategic ability to deliver deep automation and industrial IoT integration for manufacturing clients.

Modular Instruments Market Developments

• Keysight Technologies Completes Acquisition of Spirent Communications PLC (October 2025)

Keysight Technologies, Inc. announced the completion of its acquisition of Spirent Communications plc for approximately £1.16 billion (around US $1.46 billion). This strategic merger significantly expands Keysight's portfolio, combining its hardware expertise with Spirent's strengths in satellite emulation, positioning, and network automation. The move is a key capacity addition, integrating Spirent’s advanced testing capabilities for non-terrestrial networks and complex communication systems, which directly addresses the accelerating demand for high-fidelity emulation in the 5G and aerospace markets. Keysight's official press release confirmed the integration of Spirent's operations into the Communications Solutions Group.

• Rohde & Schwarz Introduces Multi-Purpose R&S NGT3600 High-Precision Dual-Channel Power Supply (November 2025)

Rohde & Schwarz GmbH & Co. KG launched the new R&S NGT3600 DC power supply series, including the dual-channel R&S NGT3622 model, which delivers precise DC power up to $3.6\text{kW}$. This new product introduction targets applications across R&D, quality assurance, and production, specifically for power system testing and DC-DC converter evaluation. The launch of this high-precision power supply module is a direct response to the increasing demand for advanced, accurate power testing solutions driven by the proliferation of electric vehicles and complex embedded electronic systems requiring reliable power cycling and load simulation.

• Keysight Introduces Scalable, Modular, All-in-One Testing Solution for High-Volume PCBA Manufacturing (November 2025)

Keysight Technologies, Inc. announced a new scalable, modular, all-in-one testing solution designed to accelerate high-volume printed circuit board assembly (PCBA) manufacturing. The solution integrates various modular test technologies to provide a high-throughput, comprehensive test environment. This product launch addresses the industry's need for faster, more efficient end-of-line testing in consumer electronics and industrial automation, creating new demand by directly translating the flexibility of modular instruments into measurable throughput gains on the factory floor.

Modular Instruments Market Segmentation:

• By Type
• PXI
• AXIe
• VXI
• VME
• LXI
• PCI/PCIe
• By Industry Vertical
• Aerospace And Defense
• Automotive & Transportation
• Electrical And Electronics
• Telecommunication
• Industrial Automation
• Healthcare & Life Sciences
• By Application
• Research & Development
• Manufacturing & Production Testing
• Design & Validation
• Field Testing & Maintenance
• By Geography
• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indonesia
• Thailand
• Others

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. Modular Instruments Market BY Type

5.1. Introduction

5.2. PXI

5.3. AXIe

5.4. VXI

5.5. VME

5.6. LXI

5.7. PCI/PCIe

6. Modular Instruments Market BY industry vertical

6.1. Introduction

6.2. Aerospace And Defense

6.3. Automotive & Transportation

6.4. Electrical And Electronics

6.5. Telecommunication

6.6. Industrial Automation

6.7. Healthcare & Life Sciences

7. Modular Instruments Market BY application

7.1. Introduction

7.2. Research & Development

7.3. Manufacturing & Production Testing

7.4. Design & Validation

7.5. Field Testing & Maintenance

8. Modular Instruments Market BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. United States

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. France

8.4.3. United Kingdom

8.4.4. Spain

8.4.5. Others

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Indonesia

8.6.6. Thailand

8.6.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Keysight Technologies Inc.

10.2. NI (part of Emerson Electric Co.)

10.3. Viavi Solutions Inc.

10.4. Fortive Corporation

10.5. Astronics Corporation

10.6. Teledyne LeCroy Inc.

10.7. Rohde & Schwarz GmbH & Co. KG

10.8. AMETEK Inc.

10.9. Teradyne Inc.

10.10. Pickering Interfaces Ltd.

10.11. Advantest Corporation

10.12. Anritsu Corporation

10.13. Tektronix Inc.

10.14. Yokogawa Electric Corporation

11. APPENDIX

11.1. Currency

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology

11.6. Abbreviations

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Keysight Technologies Inc.

NI (part of Emerson Electric Co.)

Viavi Solutions Inc.

Fortive Corporation

Astronics Corporation

Teledyne LeCroy Inc.

Rohde & Schwarz GmbH & Co. KG

AMETEK Inc.

Teradyne Inc.

Pickering Interfaces Ltd.

Advantest Corporation

Anritsu Corporation

Tektronix Inc.

Yokogawa Electric Corporation

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