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The global electronic load market size was USD 2.93 billion in 2020. The global impact of COVID-19 has been unmatched and staggering, with electronic load witnessing a negative demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -9.1% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 3.11 billion in 2021 to USD 4.99 billion in 2028 at a CAGR of 7.0% in the 2021-2028 period. The rise in CAGR during the forecast period is attributable to this market's demand and growth, returning to pre-pandemic levels once the epidemic is over.
The remarkable development in electronic adoption across the world has led to the growth of demand worldwide. The revolution in various fields such as aerospace, defense, government services, automotive, energy, and wireless communications and infrastructure has led to industrialization and urbanization, making it vital to boost electronic equipment and electric supply reliability. The instrument is used to test AC and DC electronic and electric currents.
Blockades in Electronic Industry Has Harmed the Electronic Load Market Growth amid COVID-19
The global pandemic caused by the spread of the novel coronavirus has had a damaging impact on every industry. Industries have suffered significant losses in operational time owing to the imposition of stringent rules such as lockdowns to reduce the spread of the COVID-19 virus. Consequently, the outbreak of the virus has altered the demand for the electronic load. As the market is majorly dependent on electric and electronic activities, the decline faced by the electric and electronics industry in a long time has also impacted the investment in the instrument. The imposing of lockdowns in various countries and shutting down of businesses except for essential services with minimal workforce affected international and domestic trade. This has directly impacted work in the electronic test equipment industry.
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Increasing Demand for Boosting Reliability of Electronics is a Prominent Trend
Notable technological developments have been made in electronics in the past decade, which has had an extensive and vivid impact on the lives of humankind. Industries such as oil and gas, automobiles, renewable energy, wireless communications and infrastructure, and many others have adopted innovative electronics to function smoothly. The rising utilization of consumer electronics in the past decade has massively increased. This has led to manufacturers using the 'push' strategy, wherein many electronics are pushed into the market, and consumers can buy them at ease. The high supply has made it necessary to maintain the safety of these electronics to avoid accidents, namely, overheating, data loss, and more. The need for the product is observable to help in electronic testing. This factor is expected to augment the market growth in the forecast period.
Surging Utilization of Electric Vehicles is a Vital Trend
The growing obligation to conserve the earth's resources and be environmentally sustainable has given rise to the demand for electric vehicles. The International Energy Agency's Global EV Outlook 2020 reported that the sales of electric cars exceeded 2.1 million globally in 2019 as compared to 2018. Electric cars were responsible for 2.6% of the total global car sales, recording a 40% year-on-year increase. As technological development in the electrification of two/three-wheelers, buses, and trucks progresses, and the demand for them grows, electric vehicles are expanding considerably.
Ambitious policy announcements, such as in 2019, suggestions of an ongoing shift from direct subsidies to policy approaches that rely on regulatory and other structural measures, namely, zero-emission vehicles mandates, have provided the auto industry with significant goals. Consumers that support the transition in an economically sustainable manner further augment the trend. With the rising number of EVs and fuel cells, the demand for battery testing equipment has increased. This is one of the vital factors that is expected to drive the market growth.
Growing Wireless Communications and Infrastructure to Aid the Market Dynamics
Growing investments in wireless communications and infrastructure would accelerate the wireless and power supply testing to ensure the efficient operation of electronic components. The increasing demand for smartphones and mobile phones, especially in developing nations, has boosted the growth of wireless infrastructure. Mobile phones, too, require batteries to function, which require accurate testing to avoid accidents.
Even aerospace, defense, and government services utilize wireless communication devices to communicate even in remote areas. It has become imperative to ensure the efficient operation of all components due to the increased reliance on wireless communications in every field of operation. Hence, rising investments in wireless communications and infrastructure would propel the demand for electronic load during the projected period.
Surging Renewable Energy Consumption to Drive the Market
The increasing environmental conscience amongst humans and the necessity to reduce carbon emissions are the major driving forces for renewable energy generation. The growth of the renewable energy sector has led governments to set up massive plants worldwide to generate power from hydro, solar, wind, and tidal resources. The increasing percentage of power generation using renewable resources can also be attributed to the requirement of relatively more minor capital than oil and gas.
According to the International Renewable Energy Agency's Renewable Capacity Statistics 2021, the total renewable capacity of the world rose by 10.3% in 2020 to 2799094 MW. The energy generated by renewable resources must first be stored in batteries for further consumption. This factor is anticipated to drive the growth of the market in the forecast period.
High Capital Cost to Restrain Growth of the Electronic Load Industry
These instruments are used to provide a programmable load while testing voltage and current for AC and DC applications. Recently they offer modes like Constant Current (CC) mode, Constant Resistance (CR) mode, Constant Voltage (CV) mode, and Constant Power (CP) mode. Due to the increased precision and specialized manufacturing, they have high initial prices. Their high capital cost could also be attributed to the low economy of scale. These instruments, with specific functionalities, have a high capital cost, thereby adversely affecting the growth rate of the electronic load industry.
Below 600V Segment to Maintain High Share Due to Spurring Demand for Testing in Early Developmental Stage
The electronic load market by voltage is segmented into below 600V and above 600V. The increasing demand for testing and measuring equipment at the early stage of development to avoid failing at a later stage is critical for the below 600V segment. The below 600V segment finds significant use in testing consumer electronic equipment, making the segment significant. The above 600V segment is generally used in grid applications and renewable energy applications. The huge demand for renewable energy is anticipated to propel the above 600V segment of the market.
Rising Adoption of Electric Vehicles Will Drive the DC Segment in the Near Future
Based on the current, this market can be primarily split into alternating current (AC) and direct current (DC). Currently, the maximum portion of the equipment manufactured and utilized is direct current (DC) due to its massive utilization in all major fields and smaller laboratory testing equipment. Alternating current (AC) instruments find their usage in grid applications or testing power supply. With the rising electrification in developing nations all over the globe, the AC segment is also indirectly expected to grow.
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Wireless Communication and Infrastructure Segment to Dominate Backed by Maximum Usage of Load
Based on the degree of utilization in various applications, the market is segmented into aerospace, defense & government services, automotive, energy, wireless communications & infrastructure, and others. Due to the varying degree of utilization in various applications, the market is dominated by the wireless communication and infrastructure segment. The energy segment also accounted for a significant market share due to AC and DC application in testing grid power sources and renewable energy storage batteries.
The automotive application segment was majorly driven by the growth in the demand for electric vehicles. Aerospace, defense, and government services utilize batteries in their vehicles and use various complex navigating solutions, especially in aircraft. The aerospace, defense, and government services segment also uses special wireless communication devices based on radio signals.
The others segment would account for the utilization of the product in all commercial and residential applications. The vast potential due to the growing digitalization and the rising adoption of consumer electronics, combined with technological advancements, is anticipated to propel the development of the others segment in the market.
North America Electronic Load Market Size, 2020 (USD Billion)
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The market has been analyzed across major regions, including North America, Europe, Asia Pacific, South America, and the Middle East and Africa. North America is the largest market for electronic loads due to the high adoption of intelligent electronics and electricals. The growing awareness of utilizing environment-friendly electric vehicles would also drive the market.
Asia Pacific is the second-most dominant region in the electronic load industry due to the increased electrification and the rapid rise in electronics adoption. Increased investments in electric vehicles are also driving the Asia Pacific market. The market in Europe is dominated by Germany, Russia, and the U.K. The region's growing automotive and energy sector is the crucial driver for the market. The GCC countries are the major contributors to the market share of the Middle East and Africa region.
Latin America is the fastest-growing region, owing to the region's increasing investment in the automotive and wireless communications sector.
Keysight Technologies, AMETEK, and National Instruments to Lead with Investments in Technological Advancements and Wide Customer Reach
A study of the competitive landscape of the market shows that very few of the current companies have invested widely in new programmable technologies. The market has seen significant recent technological advancements to keep pace with the best manufacturers. Considering all the scenarios, Keysight Technologies, AMETEK, and National Instruments are the major manufacturing companies and are investing in developing the technology. They are expected to stay the market leaders in the upcoming years.
An Infographic Representation of Electronic Load Market
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The market research report on the electronic loads highlights the leading regions worldwide to offer a better understanding of the user. Furthermore, it provides insights into the latest industry trends and analyzes technologies deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 2.93 billion in 2020 and is projected to reach USD 4.99 billion by 2028.
In 2020, the North American market value stood at USD 0.89 billion.
The market is likely to grow at a CAGR of 7.0% over the forecast period 2021-2028.
The below 600V segment is anticipated to dominate this market during the forecast period.
The growing wireless communications and infrastructure development for testing is the key factor driving the market.
Keysight Technologies, AMETEK, and National Instruments are some of the key participants in this market.
North America dominated the market in terms of share in 2020.
The utilization of fuel cells in electric vehicles, which require precise testing, coupled with the growth in electric vehicles, has augmented the demand for the product.
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