Market Trends of North America Electronic Test And Measurement Industry
Rising Electrification in Automotive Sector is Driving the Demand
- The US automotive industry is a linchpin of the nation's economic landscape. In the past decade, the industry has witnessed significant shifts in production and sales. Data from CEIC reveals that US motor vehicle production hit 10,611,555 units in December 2023, marking a notable increase from the 10,052,958 units recorded in December 2022.
- Two pivotal legislations, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, inject hundreds of millions of dollars into the electric vehicle industry. These initiatives are laser-focused on bolstering US manufacturing and supply chains, particularly to ease the transition for both light-duty and medium to heavy-duty vehicles.
- The rapid evolution and deployment of autonomous driving technologies propel the demand for electronic test and measurement equipment. Notably, countries like the United States, Canada, and Mexico are witnessing a surge in autonomous vehicle adoption. Many vehicles on American roads are now equipped with ADAS (advanced driver assistance systems), pivotal in enhancing safety, curbing injuries, and saving lives.
- The Highway Loss Data Institute (HLDI) projects that by 2043, nearly all registered vehicles in the United States will feature integrated ADAS, encompassing features like rear parking sensors, lane departure warnings, rearview cameras, and blind-spot alerts.
- In March 2024, LeddarTech, a Quebec City-based automotive software firm, joined forces with Arm, a British semiconductor and software design specialist. Their collaboration is set to push the boundaries of ADAS and autonomous driving technology, particularly for software-defined vehicles. The primary goals of this partnership include enhancing CPU capabilities for ADAS, accelerating time-to-market, and championing the adoption of software-defined vehicles.
- This collaboration promises many benefits for automotive manufacturers and suppliers, especially those in Tier I and II, from faster innovation cycles to smoother implementation. As the automotive industry witnesses a surge in production, sales, and the adoption of cutting-edge technologies, the demand for electronic test and measurement equipment is steadily increasing. With vehicles becoming more connected and integrating with data, cellular networks, and infrastructure, the need for electronic testing devices and a diverse range of measurements is only set to grow.
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The United States is Expected to Witness Significant Growth
- The United States presents significant growth opportunities in the electronic test and measurement sector, driven by diverse, thriving industries. Notably, the aerospace and defense sector is a pivotal end-user, fueling demand for cutting-edge test solutions. Recent reports highlight the dominant position of the US in global military spending, allocating a staggering USD 905.5 billion in 2023. This figure surpasses the combined military budgets of the next 15 nations, with China at USD 219.5 billion and Russia following as the second and third highest spenders.
- Investments and surging demand from commercial and military entities within the aerospace and defense segment are key drivers propelling the electronic test and measurement market. The US market also benefits from the presence of established industry leaders, whose robust manufacturing and R&D capabilities bolster the sector's growth and create lucrative revenue streams for test and measurement vendors.
- The US government's strategic focus on advanced manufacturing, green energy transitions, and cutting-edge communication tools responds to evolving trends like rapid urbanization. These trends fuel demand for smart appliances, green mobility solutions, and a burgeoning 5G telecom landscape, propelling the testing and measurement market to unprecedented growth.
- Additionally, the US boasts a significant presence of major automobile OEMs, further bolstered by the government's supportive infrastructure and regulations favoring electric vehicles. Coupled with a rising preference among younger consumers for luxury and premium vehicles, the market is set for significant growth.
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