Market Trends of Asia-Pacific Electronic Test And Measurement Industry
The Electric Vehicles Segment is Expected to Witness Significant Growth
- Electric car demand in APAC countries is experiencing a significant surge, driven by advancements in the automotive industry and reinforced by supportive government policies, including subsidies, grants, and tax rebates. In producing and maintaining electric vehicles, a comprehensive suite of electrical and electronic test equipment, such as ground resistance testers, micro ohm meters, multimeters, and voltmeters, plays a crucial role. These tools are indispensable for testing a wide range of components, including motors, power systems, batteries, charging systems, and wiring, ensuring the reliability and efficiency of electric vehicles.
- According to the International Energy Agency (IEA), illustrating this momentum, China recorded a notable surge in new electric car registrations, reaching 8.1 million units in 2023. This represents a 35% increase from the previous year. In contrast, the traditional car market contracted by 8%, while the electric vehicle segment expanded by 5%. This data underscores the resilience and growth of electric vehicles within a maturing market. As electric vehicle sales continue to rise, the demand for electrical and electronic test equipment will escalate correspondingly.
- By mirroring this trend, Japan is actively promoting the adoption of plug-in hybrid electric vehicles (PHEVs). By the end of 2023, the Japanese government plans to ease regulations, thereby streamlining the process for businesses to set up and operate fast-charging stations. As part of this initiative, a rapid charging fund will be established to assist companies in connecting their fast charge points to the power grid. These measures are anticipated further to fortify the electrical and electronic test instruments market, providing a robust infrastructure to support the growing electric vehicle ecosystem.
- As electric vehicles gain traction across the region, the need for comprehensive battery performance testing, security assessments, electrical motor evaluations, charger tests, and certifications is expected to increase significantly. This growing demand highlights the critical role of advanced testing equipment in ensuring electric vehicles' safety, performance, and reliability, thereby supporting the broader adoption of sustainable transportation solutions in Asia-Pacific.
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India is Expected to Witness Significant Growth
- India, amid a sweeping technological transformation across sectors, is emerging as a prime destination for testing and measurement equipment.
- Driven by a surge in demand for cutting-edge technologies, the Indian government is directing its attention toward advanced manufacturing, green energy transitions, and bolstering communication tools. This strategic focus is in response to escalating trends such as rapid urbanization, fueling demand for smart appliances, green mobility, and a burgeoning 5G telecom sector. Consequently, India's testing and measurement market is witnessing an unprecedented upsurge.
- Invest India reports a remarkable growth trajectory in electronics production, with a CAGR of 13%, leaping from USD 49 billion in FY17 to USD 101 billion in FY23. Projections indicate that the country's electronics exports are set to hit USD 120 billion by FY26. To bolster this momentum, the Indian government is actively fostering the electronics manufacturing sector. Initiatives comprise establishing export hubs nationwide, strengthening its global position in the value chain, and pursuing a larger share of the global electronics export market.
- Global giants like Foxconn Technology Group and Megatron Asia Pacific Ltd are solidifying their presence in India, underlining the nation's attractiveness as a manufacturing hub. In a bold move to position India as a global leader in chip and electronics manufacturing, the interim budget for FY25 proposed a substantial 71.4% increase in allocation, totaling INR 13,104.50 crore (USD 1.57 billion) for these sectors.
- The Indian electric vehicle (EV) market is on a rapid ascent. In 2023, while the country's passenger vehicle (PV) sales grew by 10% Y-o-Y, surpassing 4 million units, the electric vehicle (EV) segment nearly doubled its sales, marking a staggering 97% Y-o-Y increase and capturing 2% of the four-wheeler market. With the government actively incentivizing EV adoption and ramping up infrastructure, the role of electronic test and measurement equipment in ensuring the seamless operation of EVs is paramount.
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