The electromagnetic compatibility (EMC) testing sector is projected to expand from US$ 2.55 billion in 2022 to US$ 3.99 billion by 2030, reflecting a compound annual growth rate (CAGR) of 5.8% during the period from 2022 to 2030.
Across the globe, governments are implementing rigorous EMC regulations aimed at safeguarding consumers and businesses from the detrimental impacts of electromagnetic interference. These regulations mandate that electronic devices and systems undergo EMC testing prior to their market introduction or sale. The Information Technology Industry Council (ITI) has released the 2021 Global Benchmark Report, which evaluates the influence of international EMC regulatory practices on information technology equipment (ITE). This report emphasizes global initiatives that address non-wireless and non-telecom regulatory requirements concerning EMC. It advocates for constructive measures that governments can take to identify, mitigate, and eliminate trade barriers, manufacturing challenges, and supply chain disruptions. Drawing inspiration from the World Bank?s annual Doing Business report, ITI has ranked 15 countries along with the European Union (EU), the Eurasian Economic Union (EAEU), and the Gulf Cooperation Council (GCC) based on how their EMC regulations for ITE affect the business environment for manufacturers looking to import and market their products in these regions. The World Trade Organization (WTO) Technical Barriers to Trade (TBT) agreement serves as a vital instrument for raising awareness and addressing trade barriers stemming from technical regulations designed to ensure ITE electromagnetic compatibility. The TBT agreement establishes a foundational framework for effective regulatory practices. Consequently, the stringent regulations imposed by various authorities are propelling the growth of the EMC testing market.
The rise in GDP per capita and a favorable outlook towards the adoption of electronic devices are driving the demand for EMC testing globally. The emergence of compact smart wearables is significantly increasing the need for microelectronics. EMC testing is essential for a wide range of electronic products, including smartphones, wearable technology, televisions, and household appliances. Moreover, the introduction of smart electronic devices that incorporate multiple sensors, processors, and other components is further accelerating the demand for EMC testing, thereby enhancing the growth of the EMC testing market. Technological advancements play a crucial role in the development of smaller, energy-efficient electronics. With the ongoing expansion of IoT solutions and the rise of smart cities, the demand for EMC testing is on the rise. Various governmental ministries are utilizing EMC testing to ensure the safety of electronic products. For example, as of July 2023, the Head of the Industrial Service Standardization and Policy Agency (BSKJI) of the Industry Ministry is employing an EMC testing system to guarantee that electronic products are safe for consumers. Such global initiatives are expected to positively influence the EMC testing market in the coming years.
Numerous countries in the Asia-Pacific (APAC) region are recognized as major producers of electronic components and devices essential for consumer electronics, telecommunications, automotive parts, and other industrial machinery. Additionally, the increasing number of manufacturing facilities in India and China, driven by a robust supply of skilled labor, is contributing to the growth of the EMC testing market. According to Cisco's annual Internet report, the Asia-Pacific region is anticipated to reach 3.1 billion Internet users by the end of 2023. Furthermore, the GSM Association predicts that APAC will account for 41% of 5G mobile connections by 2030, marking a 4% increase from 2022. The rising demand for 5G connectivity is boosting consumer interest in smartphones, which in turn is propelling the EMC testing market. For instance, the GSM Association reported in July 2023 that smartphone adoption in the Asia-Pacific region is expected to rise to 94% by 2030, reflecting an 18% increase from 2022, driven by enhanced digital literacy and the availability of affordable devices. This surge in the adoption of smartphones and other advanced internet-enabled devices is likely to further stimulate the EMC testing market in APAC.
China boasts the largest manufacturing sector globally, encompassing a wide array of industries. The Chinese government has launched the "Made in China 2025" initiative, which is expected to further stimulate growth in the manufacturing, automotive, and aerospace & defense sectors. Additionally, China ranks as the second-largest aviation market after the United States and is one of the fastest-growing aviation markets worldwide, indicating a significant demand for aircraft over the next two decades. Major aircraft manufacturers like Boeing and Airbus have established production facilities in China. Key players in the aerospace sector are forming strategic partnerships and engaging in mergers and acquisitions to enhance their production capabilities, which is anticipated to drive market growth during the forecast period. For example, in April 2023, China Aviation Industry partners and Airbus signed a cooperation agreement to expand the A320 Family assembly capacity with a second line at its Tianjin facility. This collaboration will bolster Airbus and its partners' production network, thereby increasing the adoption of EMC testing in the aerospace sector. EMC testing is crucial for protecting sensitive data and communication networks from external interference, and its benefits?such as reliability, safety, cost savings, data security, and performance optimization?are propelling the EMC testing market in the aerospace industry.
The Indian manufacturing sector has emerged as a high-growth industry. The Indian government has initiated the "Make in India" program to bolster the manufacturing sector and position the country as a significant manufacturing hub. EMC testing is vital for ensuring the proper operation of electrical and electronic products amidst electromagnetic emissions. Various government initiatives are fostering the growth of the EMC testing market. For instance, data from the Ministry of Commerce and Industry in August 2023 indicates that the adoption of Industry 4.0 and the National Manufacturing Policy is thriving within India's manufacturing sector. The expansion of this sector is creating opportunities for the growth of the EMC testing market. EMC testing assists manufacturers in identifying and resolving issues caused by electromagnetic emissions, thereby enhancing the overall performance and longevity of products utilized in the manufacturing industry.
Key players in the EMC testing market include Ametek Inc, Element Materials Technology Group Ltd, Bureau Veritas SA, Eurofins Scientific SE, Intertek Group Plc, T?V NORD Group, Rohde & Schwarz GmbH & Co KG, SGS SA, TUV SUD AG, and UL, LLC. A comprehensive analysis of several other significant EMC testing market players was conducted during this market research study to provide a well-rounded perspective of the market and its ecosystem. The EMC testing market report offers in-depth insights, enabling key players to formulate effective growth strategies.