The Past, Present, and Future of Test and Measurement Market
Why “Test & Measurement” is important?
Test & Measurement (“T&M”) is an important step during the product development and production process. As a general consumer, this might be invisible or perceived as a simple step when product is being manufactured. Yet, in reality, this is an essential and indispensable process which validates product performance prior to release to the market. This validation process is especially critical as designs become more intricate and complicated. The requirements for specialized T&M equipment has increased as precise test data and reliability validation is required for product life cycle performance in the field.
Several factors fuelled the development of T&M, including the increased regulation of industry standards, product complexity, increasing production efficiency and specialization, the rising cost of failure, and more.
What is the current situation of the T&M sector?
Despite the economic challenges over the last few years, the T&M market continued to grow with a market that reached a value of USD 24.3 billion in 2020. Projecting 2021 and future market value, analysts and market researchers estimate the market to reach a value of USD 30.1 billion by 2026, with a compound annual growth rate (“CAGR”) of 3.7% during 2021-2026.
The T&M sector is an industry that remains highly fragmented, with a split focus on both the development and production of equipment designed to help detect, measure, record, and control factors in manufacturing processes such as power, flow, vibration, temperature, and more. This sector has been growing steadily regardless of the recent COVID-19 business environment & economic conditions, and will continue its expansion due to the complementary relationship it has with multiple market sectors and technologies.
Growing demand for T&M equipment comes from applications such as telecommunications, medical, automotive and consumer electronics. As the technological advancements in all markets continue to evolve, the demand gap for T&M equipment will be widened with a knock-on effect. Examples of such growth include the adoption of IoT devices which contributes to the semiconductor tests. Also, the 5G deployment acceleration contributes to wireless component tests and RF antenna signal reference testing, so the devices work per their design specifications.
What will the future T&E market development look like?
Due to the economic uncertainty induced by COVID-19, more businesses look for rental and leasing-based procurement options for T&M equipment that drive some market participants to take the initiative to offer rent-to-own and asset management services. The emergence of various quickly advancing technologies also drives the T&M industry to provide more cost-effective solutions, shorter development cycle times, and increased performance.
While the T&M market has been traditionally fragmented, the market is beginning to experience some consolidation. Recently there have been more suppliers repositioning and advancing their technology solutions through mergers and acquisitions which will also lead to improved economies of scale and lower operating costs.
The market, in general, identifies several key drivers to move the test and measurement sector forward, including digitization, solutions by application, additive manufacturing, Internet of Things (IoT), etc..
How could TTM help your next development?
TTM Technologies (“TTM”) believes that the test and measurement market will maintain positive growth in the coming years tied to the continued advancement in technologies in all markets as well as industrial automation.
TTM has established itself and is recongnized as a T&M market leader, capable of supporting the advanced technology requirements and specialty processes required to produce the leading edge products the T&M market is demanding.
TTM offers advanced solutions to support our customers product development from desing through end of life while maintaining the standards of quality and reliability the market demands. TTM's skilled and experienced global teams consistently help our customers overcome design challenges, through early product engagement and Design for Manufacture (DFM), to ensure they get their products to market effectively and efficiently.