The market for test and measurements had revenues of $3.18bn in 2014, according to market watcher Frost & Sullivan.
It estimates the test market will reach $3.87bn in 2019 at a compound annual growth rate of 4%.
Growing demand for the defence and aerospace sectors is driving this healthy growth in the test market.
And the big gainers seems to be the suppliers of modular test instruments, such as PXI instruments.
“Modularity is a key trend in any technologically-evolving industry and A&D is no exception,” said Frost & Sullivan Measurement & Instrumentation Industry Analyst Prathima Bommakanti.
“It is a major aspect of aircraft design – components are in the form of separate modules, which are then integrated in the total engine system. Modular components are preferred as they offer scalability and flexibility. This, however, will reduce the cost of tests.”
With growing pricing pressure, it is possible that smaller suppliers will be hit hard as global customers stay conservative and opt for bigger, well-established test equipment vendors.
“Further, widespread use and decreasing prices of electronics mean that end users continually demand attractively-priced software and hardware despite the enhanced performance of products,” said Bommakanti.