Test and Measurement Equipment Market Size, Share, and Growth Forecast for 2024 - 2031

Test and Measurement Equipment Market Size and Share Analysis

The test and measurement equipment market is estimated to increase from US$ 8.4 Bn in 2024 to US$ 12.2 Bn by 2031. The market is projected to record a CAGR of 5.4% during the forecast period from 2024 to 2031.

The market is driven by increasing demand across industries such as telecommunications, electronics, automotive, aerospace, and manufacturing, where precision and reliability are paramount. Digital solutions offer enhanced flexibility, scalability, and ease of integration with other testing processes. Moreover, automation is improving testing efficiency and reducing human error, which is particularly valuable for high-volume manufacturing environments.

Studies and industry analysts estimate that human error contributes to 23 to 40% of workplace accidents and production issues in manufacturing environments. In the automotive industry, around 15 to 20% of production errors are attributed to human factors, as automation mitigates risks, but human intervention remains crucial in quality assurance and maintenance. In the pharmaceutical industry, human error is involved in up to 50% of deviations, particularly in manual handling, documentation, and processes.

Key Highlights of the Market

• Based on product type, digital multimeters are set to hold a share of 24.2% in 2024 due to high accuracy and multi-functionality features.
• Based on end user, healthcare held a market share of 20.7% in 2024 amid the need to ensure accurate diagnosis, monitoring, and treatment.
• South Asia and Pacific is likely to register a CAGR of 6.1% during the forecast period due to rising demand for high-precision instruments.
• In terms of end user, the electronics and semiconductor segment will likely witness a CAGR of 5.6% through 2031.
• As industries continue to embrace digitization and automation, there is a rising need for more user-friendly and accessible tools worldwide.
• Sectors like automotive, aerospace, telecommunications, and healthcare are set to become more reliant on precision and accuracy, thereby augmenting the market.

Market Attributes	Key Insights
Test and Measurement Equipment Market Size (2024E)	US$ 8.4 Bn
Projected Market Value (2031F)	US$ 12.2 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	5.4%
Historical Market Growth Rate (CAGR 2019 to 2023)	3.1%

North America Leads with High Demand from Healthcare and Automotive Sectors

North America dominates the global test and measurement equipment market and is likely to hold a share of 30.7% in 2024. The region is driven by rapid developments in technology and rising demand for precise, reliable, and high-performance testing solutions. It is evident across industries such as telecommunications, automotive, aerospace, healthcare, and electronics. The region is estimated to witness a CAGR of 11.6% through 2031.

Increasing adoption of 5G networks and IoT devices necessitates unique testing equipment to ensure seamless connectivity and performance. Additionally, stringent regulatory standards for safety and quality in sectors like healthcare and aerospace push the need for sophisticated testing solutions.

Digital Multimeters Dominate Amid Rising Demand for Smart Home Appliances

Rising penetration of electronic devices across various industries coupled with high functionality and low cost of digital multimeters is driving the segment’s growth. There is a surging demand for portable digital multimeters in energy and automotive sector, which is further boosting growth. The segment is anticipated to generate a share of 24.2% in 2024.

Different types of multimeters such as auto-ranging multimeters are easy to use and can be operated by anyone having technical knowledge. Auto-ranging multimeters effectively measure similar parameters of various ranges without the need for manual adjustments. As a result, with increasing demand for smart home appliances and electronic products, need for auto-ranging multimeters is skyrocketing.

Healthcare Sector Seeks Unique Equipment to Maintain High Quality and Safety

The healthcare sector continues to be the leading end user segment within the test and measurement equipment market, accounting for a significant share of 20.7% in 2024. Tests and measurements play a significant role in the healthcare sector as it depends on high quality, precision, and safety. Measurement systems enable professionals to identify variations, defects, and discrepancies owing to which their adoption is increasing.

They help enhance patient safety by ensuring devices meet stringent performance standards and regulatory compliance. Additionally, they support medical research, innovation, and the development of unique therapies. Their reliability and accuracy are essential in maintaining the quality of care, improving outcomes, and fostering trust in healthcare services.

Test and Measurement Equipment Market Introduction and Trend Analysis

Test and Measurement Equipment (TME) refers to a broad category of tools and devices used to evaluate, measure, and analyze physical properties of electrical, mechanical, and environmental systems. These instruments are essential for ensuring the accuracy, quality, and performance of products and systems across various industries.

Test and measurement equipment ensures products meet specified standards and function correctly. It helps in enabling manufacturers to maintain high-quality standards and prevent defective products from reaching consumers. By rigorously testing electrical safety, functionality, and durability, these devices help ensure that products comply with safety regulations, reducing risks for end-users.

Global environmental goals are pressing companies to reduce emissions. Hence, the test equipment industry is increasingly moving toward sustainable practices, especially in fields with high energy demands like EV battery testing, laboratory instrumentation, and power supplies.

Manufacturers are also increasingly integrating sustainable materials and low-waste production techniques into their products. For instance,

• Companies like Tektronix have responded by using recyclable components in their testing equipment and enhancing product longevity to reduce turnover and waste.

The approach aligns with the broader trend of circular economy practices, where products are designed for durability, reuse, and recyclability. It helps in reducing the need for constant replacement and minimizing resource consumption.

Historical Growth and Course Ahead

The COVID-19 pandemic drove a sudden demand for diagnostic and medical testing equipment back in the historical period. These included PCR machines, ventilator testing tools, thermal scanners, and various other health-related measurement devices.

Adoption of remote patient monitoring surged as healthcare systems aimed to minimize in-person visits, led to an increasing demand for testing and measurement devices. These helped ensure accuracy and reliability of remote medical devices. Backed by the aforementioned factors, the market recorded a CAGR of 3.1% from 2019 to 2023.

The test and measurement equipment industry is projected to rise at a CAGR of 5.4% through 2031. There is a high demand for smaller, more portable test equipment that does not compromise on performance. This trend is especially prominent in industries like telecommunications, automotive, and electronics, where testing often needs to be done on-site or in-field.

Manufacturers are further designing test instruments that offer a wide range of measurements like temperature, pressure, current, and voltage in a single device. These help in providing versatility and reducing the need for multiple tools. Cloud-based solutions are playing a key role in improving collaboration, enabling real-time sharing of test results and allowing for data storage and analysis on a global scale.

Market Growth Drivers

Rising Renewable Energy Deployment to Propel Demand

As countries worldwide increase renewable energy capacity, the need for robust, accurate, and portable testing tools has surged. For example,

• According to the International Energy Agency (IEA), around 3,700 GW of additional renewable energy capacity is set to be deployed globally from 2023 to 2028.
• The expansion, supported by favorable policies in over 130 countries, will be primarily led by solar photovoltaic (PV) and wind energy. These are anticipated to comprise 95% of the total increase in renewable capacity.

The trend is driven by policy support and the falling costs of renewables, with solar PV becoming one of the most cost-effective options for new power generation. Consequently, this expansion mandates the use of equipment like Portable Appliance Testers (PATs), solar test equipment, high-voltage testers, and digital multimeters. These help ensure installations operate safely and efficiently in line with new standards.

Increasing integration of renewables into utility grids also necessitates frequent testing of utility-level high-voltage equipment. These grids need multifunction installation testers and production electrical safety testers to assess both equipment and grid interconnectivity. As countries strive to meet ambitious climate targets, demand for test and measurement equipment across the renewable sector will continue to rise. It is anticipated to support the safe and efficient deployment of sustainable energy technologies.

Adoption of Automation and Smart Factories to Fuel Demand

Industries like automotive, electronics, healthcare, and renewable energy increasingly integrate IoT, AI, and novel robotics into production. Hence, there is a high demand for precision, safety, and real-time data collection.

Automated systems require constant monitoring to ensure operational efficiency and regulatory compliance, which has led to an increased need for sophisticated test and measurement tools. For instance,

• Biomedical test equipment, digital multimeters, and high-voltage test devices have become essential to guarantee safety and functionality in high-tech manufacturing environments.

Automation allows factories to operate with less human intervention. However, it demands that equipment and processes are consistently verified and calibrated to avoid costly downtime and maintain quality. Portable Appliance Testers (PATS) and production electrical safety test equipment are increasingly used in manufacturing settings to perform frequent safety checks on machines and devices.

Market Restricting Factors

High Maintenance and Calibration Costs to Impact Sales

The primary function of testing and measurement equipment is ensuring precision in data collection. It requires routine calibration to maintain accuracy and reliability, particularly in highly regulated sectors like biomedical testing, utilities, and manufacturing. However, frequent calibration and maintenance may drive up the total cost of ownership. It often presents a financial barrier for companies, especially small and medium-sized enterprises.

Calibration costs are necessary because even minor inaccuracies lead to compliance issues and safety risks. Need for adherence to these standards results in high costs that deter small-scale firms from investing in new equipment due to the ongoing expenses associated with compliance.

Strict Regulatory Framework May Restrict Market Growth

Compliance with international and regional standards, such as those set by the International Electrotechnical Commission (IEC), the Occupational Safety and Health Administration (OSHA), and the Food and Drug Administration (FDA), is a key barrier. Companies manufacturing these devices face stringent requirements for calibration, accuracy, safety, and electromagnetic compatibility.

They mainly vary by region and application. Non-compliance leads to product recalls, fines, and restrictions from entering certain markets. This can create a notable bottleneck for companies operating across multiple jurisdictions.

Market Growth Opportunities

Rising Production of Electric Vehicles to Forge Novel Opportunities

The global push toward clean energy sources have accelerated the adoption of Electric Vehicles (EVs). It is driving demand for specialized test and measurement tools to ensure these systems operate reliably and safely. For instance,

• EVs are projected to account for over 65% of global vehicle sales by 2030, according to the International Energy Agency (IEA). Hence, the need for sophisticated testing equipment is more urgent than ever to support large-scale EV production and maintenance.

EV batteries are among the most critical and costly components, and they require rigorous testing to ensure performance, safety, and longevity. This has fueled demand for battery test equipment that can handle high voltages, monitor degradation, and assess efficiency under varying conditions.

Innovations in Wireless Communication Technology to Pave the Way to Success

Rapid growth of wireless communication technologies like 5G, Wi-Fi 6, and Bluetooth is leading to a high demand for robust testing solutions. These help ensure the technologies function reliably and meet industry standards

It has prompted innovations in test equipment, creating new opportunities for manufacturers to develop tools that assess wireless performance across a wide range of applications. These include consumer electronics, automotive, and healthcare sectors. For example,

• As the telecommunications industry transitions to 5G networks, there is a pressing need for sophisticated testing equipment. These are mainly capable of handling the increased complexity of these networks.
• Companies such as Keysight Technologies and Rohde and Schwarz are focusing on developing testing solutions for 5G and beyond, including wireless IC and network testing.

Such innovations enable the testing of critical parameters like signal quality, protocol compliance, and interference. These help in ensuring that devices can operate seamlessly in high-speed environments?.

Competitive Landscape for the Test and Measurement Equipment Market

Manufacturers often adopt differentiation strategies by focusing on product innovation, quality, and customization. They strive to offer cutting-edge technologies, such as digital precision, automation, and connectivity features like IoT integration, that cater to specific industry needs. Companies also offer superior customer support, including training and consultancy, as well as robust after-sales services like maintenance contracts.

Recent Developments in the Test and Measurement Equipment Market

• In November 2024, Yokogawa Test and Measurement Corporation, based in Japan, announced the release of the PBDH0400 Series differential probe with a maximum input voltage of 2000 V. It has a frequency bandwidth of 400 MHz. The PBDH0400 Series meets the measurement requirements for the development of next-generation high-speed power devices that can contribute to the realization of a sustainable society.
• In June 2024, Yokogawa Test and Measurement Corporation announced the release of the CT1000S AC/DC split core current sensor. The CT1000S combines the accuracy of Yokogawa’s conventional current sensors with the convenience of a clamp design. It features a high Common Mode Rejection Ratio (CMRR) and excellent frequency characteristics, even at measurement frequencies of 10 kHz or higher.
• In January 2024, Japan-based TDK Corporation announced that 100% of the electricity used in all manufacturing sites in TDK-Lambda Corporation are now from renewable energy sources. TDK-Lambda began operating its core Nagaoka Technical Center on electricity derived from 100% renewable energy sources in July 2021. It has been aiming to switch to renewable energy at all its global manufacturing sites as well. TDK-Lambda Malaysia's two sites (Senai and Kuantan) have signed contracts to purchase renewable energy electricity certificates in March 2024.
• In March 2023, TDK Corporation announced the introduction of additional models to the TDK-Lambda brand CCG series of isolated DC-DC converters. Rated at 6W and 10W output, the CCG6 and CCG10 are available in both through-hole and surface-mount packages, extending the range from 1.5W to 10W. Applications include data and tele-communications, test, measurement, process control, broadcast and battery powered equipment.

Test and Measurement Equipment Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Latin America Middle East and Africa
Key Market Segments Covered	Product Type End User Region
Key Companies Profiled	Keysight Fluke Yokogawa TDK-Lambda Ametek FLIR Megger Bender Benning Hioki Netech BC Group Gossen Metrawatt
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Test and Measurement Equipment Market Segmentation

By Product Type

• Biomedical Test Equipment
• Portable Appliance Tester (PATS)
• Solar Test Equipment
• Digital Multimeters
• Multifunction Installation Test Equipment
• High Voltage (Utility) Test Equipment
• Battery Test Equipment
• Production Electrical Safety Appliance Test Equipment
• Power Supplies
• Low Resistance Ohm Meters
• Handheld Calibrators

By End User

• Healthcare
• Industrial
• Electronics and Semiconductor
• Aerospace and Defense
• Automotive
• IT and Telecommunication
• Utilities
• Education
• Food Industry
• Others

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa

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