The global test and measurement (T&M) equipment market is expected to reach $32.5 billion by 2025, from $23.5 billion in 2017, growing at a CAGR of 3.9 per cent during the forecast period of 2018 to 2025, predicts a new research by Data Bridge Market Research.

The T&M equipment industry offers significant recurring revenue opportunities through instrumentation, equipment, software and services that provide ongoing monitoring and testing capabilities, finds a new industry analysis and forecast of this market.

“There are industry tailwinds. First, there is compliance – as an example, end markets with stringent compliance standards often have regulatory agencies that require annual instrumentation certifications. Second, there is safety – monitoring devices or sensors are invaluable in specialty manufacturing or operating environments where component or equipment operation is mission-critical,” maximizemarketresearch.com, a research firm noted in its report.

The T&M equipment’s are specialised in estimating standard objects and events in units, which defines the instrumenting use, provide solutions, monitoring, control and prevention. The main factor driving the growth in this sector is: electronics advancement and T&M technology, which reduce repair and maintenance costs by improving operational efficiency in the industry. However, constantly changing technology and systems in T&M industry is the biggest restraint of this market.

T&M market: significant opportunities

The T&M equipment’s are upgraded to maintain with industrial need, which make them very important segment in different corporation and organisation. Recent development in food testing equipment market globally is projected to reach $24.6 billion by 2023, representing a CAGR of 7.7 per cent from 2018. The testing includes, inspection of food products for disease-causing organisms, chemicals, and other hazardous materials. Automotive test equipment market was estimated $2.2 billion in 2018 and is expected to reach $2.9 billion by 2025.

Test and measurement equipment are used while designing and manufacturing a product or service to ensure highest level of customer satisfaction with products and services. This industry plays an important role in the delivery of product and service quality to the customer.

These equipment are used across industries such as automotive, pharmaceuticals, biotechnology, communications, energy, telecommunications, consumer electronics, semiconductors, aerospace and others. All manufactured equipment are subjected to undergo wide range of tastes with an aim to find defects and minimise them. Increasing focus on accuracy and precision are expected to offer a great platform for key players to strengthen their market presence while new entrants can seek to establish their footprint through products innovation.

Some of the major factors that drive the growth of T&M equipment market include increase in demand for T&M solutions by end users, increase in technological advancement, and rise in demand for electronic devices. However, the price sensitivity of T&M equipment is expected to restrain the market growth. Each of these factors is anticipated to have a definite impact on T&M equipment market during the forecast period. Furthermore, advent of 5G technology and deployment of LTE & LTE-Advanced (4G) Networks Rapid Penetration of IoT Devices are anticipated to provide growth opportunities for the market expansion.

Geographically, Europe sits at the top in global test and measurement equipment market. Asia Pacific has steady growth with less percentage of share, but expected to show lucrative market growth during forecasted period.  Asia-Pacific is also expected to grow at a fastest pace as the governments in these regions are taking various initiatives to promote the innovations and R&D in their countries.

Number of companies have set records in 2019, which builds solid foundation for 2020 – 2027. In forecast period of 2020 to 2027 North America is expected to overtake Europe by total market size followed by, Asia Pacific, Latina America and Rest of the world.

According to Maximize Market Research North America was second top in terms of revenue in (Q2’19), with USA and Canada leading with top investment, projects and deals in same period, representing market share of 40 per cent during the third quarter of 2019.

The automotive industry is expected to gain the highest market share, considering the recent trends related to the connected car and autonomous car.  Due to the development of new healthcare equipment, patient-monitoring systems, and personal emergency reporting systems the healthcare sector is expected to drive the test and measurement equipment market.

The test and measurement equipment market is segmented based on product, service type, end use and region. Based on product, the market is bifurcated into general purpose test equipment and mechanical test equipment. By service type, it is categorised into calibration services and repair services/after sales services. Based on end use, the market is divided into automotive and transportation, aerospace and defense, IT and telecommunications, education and government, semiconductor and electronics, industrial, and healthcare. By instrumentation type, it is classified into active probes, data acquisition, field instrumentation, lab instrumentation, laser distance measurement, scales and weight, and spectroscopy. Based on type, it is categorised into destructive and non-destructive testing. Based on region, the market is analysed into Asia-Pacific, Europe, North America, Latin America, and Middle East & Africa.

Key players like Teledyne, Mistras, Ametek, Amphenol, MTS, Agilent, Fortive, Intertek, KLA Tencor and Sprectris hold the major share in T&M market around the world. T&M industry is characterised by many companies, at their core, are precision instrument, leading edge component and equipment businesses. Software and services are increasingly supporting these hardware, or product, businesses.

The result – the ability to generate and analyse huge amounts of data. Deep data analysis through a combined hardware and software platform provides greater diagnostics and predictive capabilities which provides significant value to customers. There are many companies, which use different strategy to acquire market. For example, Roper Technologies (ROP) divested scientific imaging businesses, Onstream provides proprietary inline inspection services, Spectro Scientific provides machine condition monitoring solutions, E2M provides motion simulator and flight simulator technology, Alchemy provides workforce training solutions for safety, Fortive is integrated, network connected; which makes its efficient and important key player.

Recent M&A of 2019:

• UL acquires Wintech Testing and Certification: UL, a provider of safety science services, announced the acquisition of Wintech Testing and Certification, a provider of testing and certification services to architects, building owners, and manufacturers across the built environment community.

• Anova acquires Intelligent Sensing Anywhere: Anova, a provider of remote monitor solutions and cloud-based scheduling, has acquired Portugal-based Intelligent Sensing Anywhere (ISA).

• Teledyne Technologies acquires the Gas and Flame Detection Business of 3M: Teledyne Technologies, a provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems, announced the acquisition of the Gas and Flame Detection Business of 3M Company.

• SGS SA acquires Chemical Solutions Ltd: SGS a Switzerland-based inspection, verification, testing, and certification provider, acquired Chemical Solutions Ltd (CSL), a US-based testing laboratory specialising in elemental and heavy metal testing for pharmaceutical, nutraceuticals, food, and cosmetic products across the US and internationally.

• Fluke Corporation acquires PRUFTECHNIK Dieter Busch AG: Fluke Corporation, a US-based subsidiary of Fortive that manufactures test and measurement equipment, acquired PRUFTECHNIK, a Germany-based test and measurement company.