According to the new market research report "Test and Measurement Equipment Market with COVID-19 Impact Analysis...", published by MarketsandMarkets, the overall Test and Measurement Equipment Market is expected to grow from USD 27.7 billion in 2021 to USD 33.3 million by 2026, at a CAGR of 3.7%.
The market is growing due to the increasing demand for such equipment from verticals such as automotive and transportation, aerospace & defense, IT and telecommunications, education and government, electronics & semiconductor, industrial, and healthcare. The healthcare sector is expected to exhibit the highest CAGR of 4.63% during the forecast period. There is a significant growth potential for the test and measurement equipment market in the healthcare vertical due to the rapid development of new healthcare equipment, patient-monitoring systems, and personal emergency reporting systems.
Uncooled segment to hold the largest share of the test and measurement equipment market, by product, in 2020
General-purpose test equipment include oscilloscopes, signal generators, digital multimeters, logic analyzers, spectrum analyzers, bit error rate tester (BERT) solutions, network analyzers, power meters, electronic counters, modular instruments, and automated test equipment (ATE), and power supplies. The characteristics of the above-mentioned type of equipment include large size, bulky displays, and slightly complicated control system and customer user interface. These characteristics are expected to change to an extent owing to the rising demand for miniature devices and the strong focus of test and measurement equipment manufacturers on integrating different types of equipment into one offering.
Most test and measurement equipment offer high bandwidth, more accuracy, and higher resolution than those in the earlier ones. Some prominent verticals in which such equipment are used include IT & telecommunications, healthcare, automotive, and industrial.
The market for healthcare sector to grow at the highest CAGR during the forecast period
On the basis of verticals, the test and measurement equipment market has been broadly classified into six segments: automobile & transportation, electronics & semiconductor, healthcare, industrial, education & government and aerospace & defense. Among these, the market for the healthcare sector is expected to record the highest CAGR between 2021 and 2026. The rising demand for test and measurement equipment for medical devices is accelerating the growth of the test and measurement equipment market for the healthcare sector.
North America to hold the largest share of test and measurement equipment market by 2021
The market in North America has been segmented into the US, Canada, and Mexico. North America accounted for a share of 33.6% of the test and measurement equipment market in 2020. The market in this region is expected to be driven by the growing demand from the healthcare, and IT and telecommunications sectors. With advancements in autonomous driving technology and recent Internet of Things (IoT) technology trends, there is a need for improved bandwidth and latency reduction, which can be easily achieved through 5G. The US is one of the active participants in the league for commercializing the 5G network throughout the country.
Additionally, the shift toward connected cars and intelligent transportation systems, along with increasing demand for medical devices in the wake of COVID-19, is expected to drive the test and measurement equipment market in the region. Also, the significant presence of major companies offering test and measurement devices in this region and the high demand for test and measurement applications for different applications in the healthcare and telecom verticals fuel market growth in North America.
North America is home to many tier 1 companies in the test and measurement equipment market, including National Instruments (US), Fortive (US), and Keysight Technologies (US). Additionally, Teledyne LeCroy (US), B&K Precision (US), and Stanford Research Systems (US) are among a few private companies in the North American test and measurement equipment market.