New Study from StrategyR Highlights a $8.2 Billion Global Market for Calibration Services by 2026
SAN FRANCISCO, June 3, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Calibration Services - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
FACTS AT A GLANCE
What's New for 2022?
Edition: 19; Released: March 2022
Amid the COVID-19 crisis, the global market for Calibration Services estimated at US$6.1 Billion in the year 2022, is projected to reach a revised size of US$8.2 Billion by 2026, growing at a CAGR of 7% over the analysis period. Electrical, one of the segments analyzed in the report, is projected to grow at a 8.3% CAGR, while growth in the Mechanical segment is readjusted to a revised 6.1% CAGR. Globally, companies are increasingly opting for calibration services in order to improve productivity and quality, and to minimize wastage. The need for businesses to improve efficiency and effectiveness of operations by reducing equipment/system downtime is the main growth driver for the calibration services market. Over the years, calibration has come to play a critical role in improving productivity, reducing replacement costs, enhancing profitability and providing a competitive edge to players. Periodic inspections and testing of equipment and systems to ensure their conformity to standard performance levels are driving companies to opt for regular calibration services. These services are also of significance for businesses desiring to maximize overall output by ensuring appropriate maintenance of existing infrastructure.
Growth in the calibration services market is influenced by internal factors such as lab accreditation, service quality and personnel expertise, along with external factors such as general economic conditions and installed base of process instruments. As customers purchasing test and measurement equipment also require calibration, there is sustained demand for calibration services. Driven by the sheer diversity of application areas for calibration services, global calibration servies market is recording stable growth. Growing importance of preventive maintenance and increasing appreciation of its long-term cost savings and benefits will further step up demand for calibration services. The adoption of stringent government regulations is also necessitating industry players to ensure accurate functioning of their testing and measurement devices, thus driving growth in the calibration services market. Sustained focus on improving operating efficiency of new as well as existing devices is also fostering adoption of calibration services in various industry verticals. Growing need for accurate and precise information constitutes another major factor driving adoption of calibration services.
Service revenues are inherently linked to the installed base of process instruments, with expanding installed base of equipment translating into greater need for calibration and hence revenues. Focus on enhancing the working life of equipment is further contributing to the increased significance of equipment maintenance, and creating opportunities for calibration service providers. Over the years, the increasing complexity of manufacturing smart products is also raising demand for testing. On the other hand, the increased attention being given to detailing in the design stage is also leading to higher demand for accurate and complex instruments. As a result of the growing complexities, the demand for calibration services is on the rise. The complex calibration procedures are capable of restricting the number as well as severity of OOT (out-of-tolerance) issues, which in turn necessitates calibration and repair services. The increased focus on automation is also favoring calibration services market, since automation has the potential to cut down the time needed to carry out calibrations and also improve overall quality of services. Customers from various industry verticals are increasingly considering calibration as a maintenance activity and as a key factor for ensuring product quality. This shift is being driven primarily by the need to comply with international standards such as ISO, which is driving companies to incorporate calibration as means to control quality in production operations.
The global calibration services market is mainly gaining from fast-paced industrialization in several countries, which requires the use of measurement and testing devices. Further, the growing focus on maintaining and safeguarding machinery and instruments is driving the use of calibration services. Also, strict regulations, rising concerns regarding quality among customers, and increasing interest in preventative maintenance are driving market growth. In recent years, the market witnessed the emergence of several 3rd party calibration providers, which has aided the market. Accessibility to 3D imitation fantasy, and 3D printing technology advancements are also auguring well for the market. Further, increasing R&D activities are stimulating market growth.
Calibration services are an imperative need in end-industries such as power generation, aerospace & defense, communication, industrial, automotive, semiconductors, electronics manufacturing, water, and power generation, among others. An increasing number of companies across various end-use industries are adopting calibration services in their production processes, as part of efforts to identify errors at the earliest and thus reduce downtime and increase output. The increasingly complex and challenging operating conditions and processes in most manufacturing and process industries offer favorable growth opportunities for the calibration services market. A case in point is the oil & gas and energy sectors with harsh working environments, where accurate measurement and calibration is essential to ensure safety of operations. Rising demand for domain expertise and high quality instruments among various end-use industries is also driving growth in the calibration services market. Also, with the use of modular instruments on the rise across various industries including life science and aerospace and defense, there is increasing scope for calibration and repair services to be performed at regular intervals due to the high risk of failures in these sectors. The adoption of stringent government regulations and growing focus on quality and standards compliance across various end-use industry verticals are driving growth in the global calibration services market. In particular, strict regulatory environment in industries such as automotive and aerospace & defense augurs well for the market. It is the imperative need to comply with legislative mandates related to environment and health and standards such as ISO that is driving end-use customers to incorporate calibration as a vital component of internal auditing and quality management.
Electrical calibration services represents the largest parameter of calibration services. All industrial sectors use a wide range of electrical components and products. The adoption of stringent quality assurance measures and the need to comply with highest quality standards, electrical instruments need to be calibration at regular intervals, thus raising the demand for electrical calibration services. Electrical calibration services are essential for ensuring the accuracy of electrical test equipment, and to maintain the quality and integrity or production chain. Electrical calibration services also assist in ensuring effectiveness of products, protect consumers, and maintain profitability of operations.
Due to the nature of components involved and the need for high accuracy, electronics manufacturing, automotive, aerospace and defense sectors represent the major end-use markets for calibration services. Electronic Manufacturing represents the largest end-use sector, globally and is also poised to witness high growth in the coming years. With electronic devices shrinking in size, featuring advanced wireless capabilities and gaining in complexity, the need to maintain accuracy and consistency of test equipment gains prominence, presenting a major opportunity for calibration service providers. Enhanced performance of electronic devices, device miniaturization, and expanding role of PCs in instrumentation are also enhancing importance of calibration services in electronics industry. With more customers looking to lengthen the useful life of their electronic equipment, calibration and repair services market is positioned for growth. The need for calibration services is also growing due to the increasing emphasis on product quality and safety. Also favoring growth is the growing significance of high technology and advanced products, which due to their high level of complexity give rise to the need for using accurate instrumentation. Such complex instruments need even more complex calibration procedures, along with tight calibration intervals to weed out out-of-tolerance (OOT) issues. In the industrial and automotive sectors, calibration services involve providing calibration for a wide range of equipment and instruments, particularly those requiring temperature profiling such as incubators, ovens, furnaces, and coolers. Service providers also offer calibration services for machine tools such as micrometers, digital handheld gauge instruments, laminated presses, and bore/hole gauges, among others. Continuous increase in the number of ISO certified companies is likely to bolster demand for calibration services in industrial & automotive sector. More
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SOURCE Global Industry Analysts, Inc.