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Rising Government Support to Research Avenues to Generate Demand for Failure Analysis Equipment, says TMR

Posted on Aug 29, 2016

The global failure analysis equipment market is dominated by companies such as JEOL Ltd., FEI Company, Hitachi High-Technologies Europe GmbH, and Carl Zeiss SMT GmbH. According to Transparency Market Research (TMR), these four industry giants accounted for a whopping 80.6% of the global failure analysis equipment market in 2012. 

“The consolidation of the global failure analysis equipment market is likely to make it progressively more difficult for new players to enter and establish themselves in the market. The high initial costs required in the failure analysis equipment industry are also likely to make it harder for new players to enter the industry in the coming years,” explained TMR’s lead analyst. On the other hand, the heavy dependence of failure analysis equipment manufacturers on raw material prices and the lack of significant backward integration among the key players are likely to boost the bargaining power of suppliers in the coming years.

Rising Funding to R&D Driving Demand for Failure Analysis Equipment

The increasing funding being allocated to research and education avenues across the world is a key driver for the global failure analysis equipment market. Research into advanced scientific phenomena requires highly refined and precise equipment in order to eliminate the risk of device malfunction or calibration errors leading to mistakes in the final data. This has necessitated the use of advanced failure analysis equipment and is likely to remain a key end-use segment of the market in the coming years.

The rising demand for medical technology in dynamic Asia Pacific economies is another key driver for the global failure analysis equipment market. Due to the rapid urbanization and sustained economic development observed in Asia Pacific, the adoption of advanced medical equipment in the region’s hospitals is rising. Modern healthcare equipment needs to be checked extensively for product defects before sale, which has led to rising demand for failure analysis equipment.

High Costs Restrict Demand for Failure Analysis Equipment

On the flip side, the high level of technical sophistication in failure analysis equipment devices results in high costs. While this is not a determinant concern in developed countries, developing countries may find it unfeasible to fund large-scale installation of failure analysis equipment. As a result, many end-use customers in these regions are opting for cheaper variants within the market, such as optical microscopes, instead of funding the installation of electron microscopes and focused ion beam systems.

A promising opportunity for failure analysis equipment manufacturers lies in the development of technological advances such as correlative light and electron microscopy and super-resolution microscopy. The introduction of these systems could also have a trickle-down effect on the global failure analysis equipment market, with the costs of standalone electron microscopy dropping to affordable levels for smaller players in the market.

Transmission Electron Microscopes, Dual Beam Systems to Exhibit Robust Demand

By product type, the global failure analysis equipment market is segmented into transmission electron microscopes, scanning electron microscopes, focused ion beam systems, and dual beam systems. Of these, transmission electron microscopes are likely to extend their lead in the failure analysis equipment market over the coming years, while dual beam systems are expected to account for 20% of the market by 2019, following smooth progress at an 11.30% CAGR from 2013 to 2019. 

Significant upheaval is expected among the leading end users of failure analysis equipment, with the fiber optics industry, biomedical and life sciences industry, metallurgy, nanotechnology all expected to exhibit a strong CAGR over the 2013-2019 forecast period. However, semiconductors manufacturing is likely to remain the leading consumer of failure analysis equipment in the coming years, with the segment expected to be worth US$1.7 bn to the failure analysis equipment market by 2019.

Geographically, Asia Pacific is likely to retain its majority share in the global failure analysis equipment in the coming years, with the regional market’s annual revenue expected to rise to more than US$4 bn by the end of 2019. On the other hand, the rising demand from regions such as Latin America and the Middle East is expected to enable smooth growth of the Rest of the World market for failure analysis equipment at a formidable CAGR of 12.60% from 2013 to 2019.

The global failure analysis equipment market is expected to be valued at US$7.3 bn by 2019. The information in this preview comes from a Transparency Market Research report titled ‘Failure Analysis Equipment Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019.’

The global failure analysis equipment market is segmented as follows:

Failure analysis equipment Market: By geography

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

Failure analysis equipment Market: By equipment

  • Scanning electron microscope (SEM)
  • Transmission electron microscope (TEM)
  • Focused Ion Beam system (FIB)
  • Dual - Beam (FIB/SEM) systems

Failure analysis equipment Market: By technology

  • Focused ion beam (FIB)
  • Broad ion milling (BIM)
  • Secondary ion mass spectroscopy (SIMS)
  • Energy dispersive X-ray spectroscopy (EDX)
  • Reactive ion etching (RIE)
  • Chemical mechanical planarization (CMP)

Failure analysis equipment Market: By end-use

  • Semiconductors manufacturing
  • Fiber optics
  • Bio-medical and life sciences
  • Metallurgy
  • Nanotechnology and nanomaterials
  • Polymers

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