Market Trends of Modular Instruments Industry
This section covers the major market trends shaping the Modular Instruments Market according to our research experts:
Semiconductor and Electronics Segment are Expected to Hold the Largest Market Share in the Forecast Period
Due to rapid penetration of the Internet of Things, automotive, 5G, virtual reality, and artificial intelligence (AI), the semiconductor and electronic markets are expected to grow, thus, boosting the modular instruments market. The explosive adoption of cloud computing in almost every sector has increased the dependency on IT services, which has created a strong demand for data centers, worldwide.
- In January 2020, Samsung, a South Korea-based smartphone giant, invested USD 500 million to intensify operations in India. The company is likely to set up a manufacturing plant on the outskirts of New Delhi to produce displays for smartphones and a wide range of other electronic devices. Moreover, in 2018, it opened a factory in Noida to increase its manufacturing capacity to produce smartphone components locally. This reflects the promising demand for electronics in Asia-Pacific countries.
- Increasing demand for clean energy in European countries drives the growth of photonics production required by the solar cells in solar plants. In 2019, Iberdrola, a Spanish electrical company, completed the construction of a photovoltaic plant in Europe that comprises more than 1.4 million solar panels with an installed capacity of 500 megawatts to supply energy to 250,000 people per year. It uses an electronics system to counteract the generated reactive power and improves grid stability.
North America is Expected to Showcase Significant Market Growth
The ongoing deployment of LTE and technological advancements in wireless connectivity technologies, such as general packet radio service (GPRS), Wi-Fi, and worldwide interoperability for microwave access (WiMax) in various fields, have boosted the number of connected devices. Hence, the growth of modular devices is used for the configuration of automated test and measurement (T&M) in North America.
- The electric vehicle is growing rapidly in North America, and so is the seismic shift in design verification and performance testing methodology. Consequently, engineers are using new testing methods, such as emulation methods, to reduce cycle time and increase productivity.
- A survey by the US National Renewable Energy Laboratory reflected that the number one reason for not buying an electric vehicle (EV) was cost (51%), followed by an inability to charge the EV while away from home (48%), which may impact the players in the electric cars market.
- For instance, in 2019, Tesla acquired Maxell Technologies, a capacitor manufacturer that pioneered the design of high-power-density, ultra-capacitors, and new battery technology. Through this acquisition, Tesla may use Maxwell’s dry battery electrode technology to enhance the range of its electric cars beyond 400 miles and keep its promise of cheaper, longer-lasting batteries.
- Due to the COVID-19 outbreak, car manufacturing companies are stepping in to manufacture necessary medical devices to meet hospital demand. Tesla has already created a prototype ventilator that uses parts adapted from electric vehicles and has promised to produce ventilators to treat patients. The United States had 4,00,000 COVID-19 positive cases, with more than 12,000 fatal cases, as of April 8, 2020.
- The majority of mobile network operators in mature markets are planning to upgrade to 5G in the next few years to remain competitive in the telecom market. Thus, major players are partnering with the technology provider to speed up the process.
- For instance, in February 2020, Samsung Electronics Co. Ltd collaborated with US Cellular for 5G and 4G LTE network solutions. Through the agreement, US Cellular, a key provider of mobile services to millions of customers across the United States, can purchase Samsung’s commercially-proven network solutions, including 5G New Radio (NR) technology, and may extend groundbreaking 4G LTE and 5G technology to its customers base.
