Technavio analysts forecast the global modular instruments market to grow at a CAGR of more than 8% during the forecast period 2016-2020, from $902 million in 2015 to $1.35 billion in 2020.
The research study covers the present scenario and growth prospects of the global modular instruments market for 2016-2020. The market is segmented into the following product segments: PXI, VXI, and AXIe, with PXI segment occupying the largest market share.
According to the report, increase in global air traffic has led to increasing demand for commercial aircraft, thereby driving the demand for aircraft components which, in turn, will drive the global modular instruments market.
Geographically, the global modular instruments market is segmented into the following regions : APAC, the Americas, and EMEA. With over 38% market share originated from APAC in 2015, APAC dominated the global market. The region generated USD 345.33 million in 2015 owing to rapid growth in the communication, IoT, and aerospace and defense sectors.
Technavio analysts highlight the following three factors that are contributing to the growth of the global modular instruments market :
- Growth in communication sector in APAC
- Expanding aerospace and defense sector in developed economies
- Rise in exports of electronics from East Asian countries
Growth in communication sector in APAC
Communication T&M solutions are being adopted widely by end-users such as telecommunication service providers, mobile device manufacturers, network equipment manufacturers, and telecommunication service providers, which have led to modular instruments market growth worldwide. Telecommunication service providers are expected to dominate the communication modular instruments market and contribute the highest market share during the forecast period.
Expanding aerospace and defense sector in developed economies
The global aerospace and defense sector is expected to witness growth during the forecast period. Technavio expects the industry to grow by 3.12% in 2016. During the past few years, the global aerospace and defense industry witnessed a continuous decline in revenue growth, which registered 3.1% in 2013, 1.89% in 2014, and 0.61% in 2015. However, the market is expected to rebound in 2016 due to the following factors:
- Increase in US defense budget
- Resurgence in global security threats
- Stable growth in GDP
- Lower crude oil prices
- Continued increase in air trafic
Gaurav Mohindru, a lead tools and components research analyst at Technavio, says, “The increased defense sector budgets in the UK, the US, France, Japan, the Middle East countries, and other developed nations are expected to boost the sales of modular instruments.”
Rise in exports of electronics from East Asian countries
There has been an increase in the exports of electronic goods from countries like Taiwan, South Korea, and Singapore. For instance, the consumer electronics market in Taiwan is expected to grow by 4% and reach USD 7.3 billion in 2016.
The demand for mid and low-end products like oscilloscopes and multimeters is sustained largely due to demand from the education sector, especially universities, polytechnic institutes, and training laboratories in the region. The steady growth of the semiconductor and electronics market in APAC is driving the growth of the modular instruments market in this region. The boom in this sector is due to the growing penetration of smartphones.
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