Failure analysis is the process of gathering and analyzing data, in order to determine the cause of failure with the objective of determining corrective actions or liability. It is crucial to understand the root cause of failure so as to prevent similar incidents in the future. Some of the common causes include assembly error, misuse or abuse, fastener failure, inadequate maintenance, manufacturing defects, low-quality material, improper heat treatments, unforeseen operating conditions, design errors, insufficient quality assurance, inadequate environmental protection, and casting discontinuities. Failure analysis equipment finds applications in various segments such as fiber optics, semiconductor manufacturing, metallurgy, polymers, life sciences, bio-medical, and nanotechnology.
The global failure analysis equipment market is estimated to account for US$ 13.52 Bn in terms of value by the end of 2027.
Market Dynamics- Drivers
Nanotechnology is an emerging technology in the market with diverse applications. It has been commercialized in various industries, owing to constant support provided by both public and private sectors across the globe. As a matter of fact, it has a massive potential to greatly enhance existing products and allows significant future opportunities. Furthermore, North America, Germany, France and the UK among others have also funded heavily in nanotechnology, which shows the importance a`nd rapid growth of the technology across the globe. Nanotechnology is an emerging field of research and has been growing during the last decade. Therefore, these factors are expected to drive growth of the global failure analysis equipment market during the forecast period.
For strong and robust research environment, state-of-the-art research and education infrastructure is required. It may include major research services or equipment and specialized support staff. These constitute direct components of research and scholarly efforts that support an institution’s mission of research and are the keys to the sustainable economic development of the institute and thereby the nation. It will also enable researchers to stay competitive on both a national and international level for a given institution. A major investment in higher education and research and development will help to produce more number of highly skilled, innovative, expert, and ethical personnel. Furthermore, research-oriented educational programs Research-oriented educational programs take place both at the undergraduate and postgraduate levels. Blueprints and plans, ideas and concepts, policies and laws, investments in technology, and physical infrastructure, cannot result in successful implementation of all these programs and yield significant and sustained progress. There is a need for competent individuals with specialized skills and deep knowledge that can provide effective and novel solutions to the programs. Thus, such factors are expected to propel the market growth in the near future.
APAC held dominant position in the global failure analysis equipment market in 2019, accounting for 54.8% share in terms of value, followed by North America, Europe, and RoW respectively.
Figure 1: Global Failure Analysis Equipment Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
Equipment required for failure analysis such as transmission electron microscope (TEM), scanning electron microscope (SEM), and focused ion beam systems are significantly expensive. Each of these equipment costs over US$ 4 billion, which is naturally hindering their adoption. On the contrary, optical microscopes cost are less expensive than electron microscope although the latter offers superior features and applications. End users in Asia Pacific have tight budget for such equipment, which in turn, is expected to hamper the global failure analysis equipment market growth over the forecast period.
Operating and managing failure analysis equipment requires skilled personnel. These individuals are required to possess adequate training and knowledge regarding the equipment. Although such skilled professionals are available in developed countries, there is a dearth of such personnel in emerging regions such as Latin America, Middle East, Asia Pacific, and Africa. Hence, these factors are expected to restrain growth of the global failure analysis equipment market during the forecast period.
|Base Year:||2019||Market Size in 2019:||US$ 7.33 Bn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||8.9%||2027 Value Projection:||US$ 13.53 Bn|
Tokai Rika Co. Ltd., Autoliv Inc., Hyundai Mobis Co. Ltd., ZF TRW Automotive Holdings Corp., Toyoda Gosei Co. Ltd., Takata Corporation, Key Safety Systems Inc., Robert Bosch GMBH, Denso Corporation, and Continental AG.
|Restraints & Challenges:||
Correlative light and electron microscopy (CLEM) combines two microscopy platforms namely electron microscopy and light microscopy. Light microscopy provides 3D quantitative and analytical data with focus on analysis of live cells. However, only electron microscopy achieves the highest definition in terms of ultrastructure and protein labeling. Furthermore, EM provides higher resolution images but only over specific regions of a non-living cell. LM is capable of providing wide field images of both living as well as non-living cells, however with limited. Thus, CLEM allows scientists to spot and zoom cellular structures in whole cell. Moreover, CLEM techniques provide additional tools for quantitative 3D analysis by adding the third dimension to EM with electron tomography combined with rapid freezing.
Many industries in emerging economies are increasingly adopting failure analysis equipment. This is owing to rising awareness regarding the economic benefits of this system. Industries such as super-conductor and life sciences are adopting this equipment, in order to prevent future failure in their operations. Key companies in the market can capitalize on these opportunities by providing novel products and gain a competitive edge in the market.
Figure 2: Global Failure Analysis Equipment Market Value (US$ Bn), 2017 - 2027
The global failure analysis equipment market was valued at US$ 7.33 Bn in 2019 and is forecast to reach a value of US$ 13.53 Bn by 2027 at a CAGR of 8.9% between 2020 and 2027.
Key companies in the market are focused on research and development activities, in order to innovate new products and gain a competitive edge in the market. For instance, in November 2013, Carl Zeiss Microscopy business group introduced PALM in 3D, thus further expanding its 3D microscopy portfolio. Furthermore, in October 2013, FEI Company launched the Tecnai Femto Ultrafast Electron Microscope (UEM), which would enable scientists to explore ultrafast events and processes that occur at the atomic and molecular spatial scale over time spans measured in femtoseconds.
Key companies in the market are focused on inorganic strategies such as joint venture, in order to enhance the market position. For instance, in October 2013, JEOL Ltd. formed a joint venture with Gatan to help JEOL Ltd. add to its SEM product portfolio.
Value Chain Analysis
The value chain for failure analysis equipment covers all the stages of setting up these systems and its end-use applications. Failure analysis equipment comprise primary raw materials such as aluminum, iron, steel, oil, silica, lenses, stands, eyepieces and the overall mounting hardware. All these sub-products are manufactured from procured raw materials such as steel, iron, oil, silica and aluminum. The EPA (Environmental Protection Agency) continuously supervises the basic raw materials utilized in failure analysis equipment production. All the procured sub-products are assembled to form a complete entity. The products are designed and optimized according to requirement. High degree of vertical integration exists between product assemblers and final complete equipment manufacturers. For instance FEI Company, and Carl Zeiss SMT GmbH remanufacture and sell sub components of failure analysis equipment for both replacement as well as new markets.
Global Failure Analysis Equipment Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on failure analysis equipment market, as Chinese electronics industry rapidly closing their business to reduce the spread of COVID-19 pandemic. Further, this trend continued in Europe and North America region, where factories where temporary closed due COVID-19 spread. In pre-crisis time, electronics industry witnessed steady growth for instance, According to the Coherent Market Insights analysis, in 2019, China registered 6.3% growth in the electronics components sells, however sales sharply dropped in span of COVID 19 pandemic period.
Key companies operating in the global failure analysis equipment market are Carl Zeiss SMT GmbH, JEOL, Ltd., FEI Company, Veeco Instruments, Hitachi High-Technologies Europe GmbH, TESCAN OSRAY HOLDING, A&D Company, Ltd., Oxford Instruments, Bruker, and Eurofins Scientific.
Failure analysis is the approach taken to determine how and why equipment or a component is not working in a desired manner. Some of the common causes include assembly error, misuse, fastener failure, inadequate maintenance, manufacturing defects, low-quality material, improper heat treatments, unforeseen operating conditions, design errors, insufficient quality assurance, inadequate environmental protection, and casting discontinuities. Failure analysis equipment finds applications in a number of end-use segments namely semiconductors manufacturing, fiber optics, bio-medical and life sciences, polymers, metallurgy and nanotechnology, and nanomaterials.
The adoption of failure analysis equipment is expected to increase over the forecast period owing to increase in its demand in the electronics and semiconductor industry. In the recent past, increase in demand of nanoelectronics, quantum dots, miniature transistor chips is driving the failure analysis equipment market growth in the electronics and semiconductor industry. Furthermore, electronics and semiconductor market is rapidly growing. For instance, according to Coherent Market Insights global semiconductor industry is expected to reach 732.4 billion by 2026. Thus rapidly growing semiconductor industry is expected positively impact the growth of global failure analysis equipment market.
Failure analysis equipment offer effective way to increase production efficiency by pin pointing errors in the manufacturing process. However, implementation of this system is expensive and requires high initial investment. System operators need to provide adequate training and knowledge regarding the equipment, which is time and money consuming.
This report segments the global failure analysis equipment market on the basis of equipment, technology, end use, and region. On the basis of equipment, the global failure analysis equipment market is segmented into Scanning electron microscope (SEM), Transmission electron microscope (TEM), Focused Ion Beam system (FIB), and Dual - Beam (FIB/SEM) systems. On the basis of technology, the global failure analysis equipment market is segmented into Focused ion beam (FIB), Broad ion milling (BIM), Secondary ion mass spectroscopy (SIMS), Energy dispersive X-ray spectroscopy (EDX), Reactive ion etching (RIE), and Chemical mechanical planarization (CMP). On the basis of end use, the global failure analysis equipment market is segmented into Semiconductors manufacturing, fiber optics, bio-medical and life sciences, metallurgy, nanotechnology and nanomaterials, and Polymers. On the basis of region, the global failure analysis equipment market is segmented into North America, Latin America, Europe, Asia Pacific, and Rest of the World.
Key features of the study:
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