Home Technology Failure Analysis Market Size, Share, Growth, Analysis and Report 2031

Failure Analysis Market

Failure Analysis Market Size, Share & Trends Analysis Report By Technology (Energy Dispersive X-Ray Spectroscopy (EDX), Secondary Ion Mass Spectroscopy (SIMS), Focused Ion Beam (FIB), Broad Ion Milling (BIM), Reactive Ion Etching (RIE), Scanning Probe Microscopy (SPM)), By Application (Electronics and Semiconductor, Industrial Science, Material Science, Bioscience) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE1973DR
Study Period 2020-2032 CAGR 8.5%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 5.3 billion
Forecast Year 2032 Forecast Year Market Size USD 14.8 billion
Largest Market North America Fastest Growing Market Asia-Pacific
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Market Overview

The global failure analysis market size was valued at USD 5.3 billion in 2023. It is estimated to reach USD 14.8 billion by 2032, growing at a CAGR of 8.5% during the forecast period (2024–2032). Failure analysis is a systematic procedure for studying and determining the underlying causes of failures or malfunctions in materials, products, components, or systems. It takes a multidisciplinary approach incorporating information from engineering, materials science, physics, chemistry, and other related topics. The primary goal is to understand why a failure occurred and provide insights to prevent similar failures in the future.

The primary factors driving the failure analysis market growth include increased demand for failure analysis from the electronics and semiconductor industries, a growing focus on nanotechnology and regenerative medicine, and technological breakthroughs in microscopes. However, its intricacy and expensive cost may impede market expansion. Furthermore, the government's mandatory safety rules and regulations and increased consumer awareness.

Market Dynamics

Global Failure Analysis Market Drivers

Growth in Electronics and Semiconductors Industry

The electronics and semiconductor sectors have expanded rapidly due to breakthroughs in consumer electronics, communication devices, and upcoming technologies such as the Internet of Things (IoT) and 5G. Electronic components' rising complexity and downsizing contribute to a higher failure rate. In semiconductor production, the failure of a small component can have serious repercussions. South Korea's semiconductor exports in December 2023 grew to 111,930,000 USD thousand, up from 95,200,000 USD thousand in November. According to Statista, Apple is the world's largest consumer electronics firm in revenue, with USD 385.1 billion in 2023. Samsung Electronics is the world's second-largest firm by revenue, with more than USD 220 billion in 2023. For example, a defect in a semiconductor chip can cause electronic equipment to malfunction, affecting everything from cell phones to vital components in automobile systems. The need for electronic gadgets drives the growth of the semiconductor sector.

Additionally, failure analysis becomes increasingly important as the electronics and semiconductor industries evolve. Manufacturing errors, design problems, and environmental variables can all cause semiconductor device failures. Timely and precise failure analysis is required to identify fundamental causes and conduct corrective actions. Introducing new materials and fabrication techniques into semiconductor manufacturing creates new problems, and failure analysis will be critical in recognizing and mitigating possible issues related to these improvements. These elements will trigger the failure analysis market trend in the following years.

Global Failure Analysis Market Restraints

High Cost and Time Consuming

Comprehensive failure analysis techniques frequently require complex equipment, professional individuals, and innovative technology, which raises expenses. The cost of failure analysis services varies depending on the complexity of the analysis, the technology used, and the service provider's experience. The failure analysis pricing for a rapid analysis with an email report might range between USD 500 and USD 2,500. Complete reports often range in price from USD 3K to USD 20K or more. High-end failure analysis services can be expensive, posing a barrier for enterprises with restricted budgets.

Furthermore, failure analysis frequently involves complex methods such as microscopy, spectroscopy, and mechanical testing, contributing to a time-consuming analysis. A failure analysis typically takes ten business days. This timeframe includes all analytical testing and fractographic work. Industries that rely on time-sensitive processes, such as manufacturing or semiconductor fabrication, may need help quickly resolving failure concerns. Delays in discovering and correcting faults can cause production downtime and financial losses. The time required for failure analysis varies greatly depending on the complexity of the issue and the level of analysis required. Some failure analyses may take a few days, while others, particularly those involving external laboratories or specialized equipment, may take weeks or months.

Global Failure Analysis Market Opportunity

Growing Automotive Industry

The rising automotive industry presents a substantial opportunity to expand the failure analysis market. As the automobile industry evolves with advances in vehicle design, materials, and technology, comprehensive failure analysis becomes critical. Analyzing and correcting automotive component problems helps improve vehicle safety, dependability, and performance. According to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger car sales in 2022 were 57.5 million units, down 1.9% from 2021. China is the world's largest automotive market, with approximately 23.6 million vehicles sold in 2022. In the first three quarters of 2023, global car sales climbed by over 9%. Car sales in the EU rose by about 17%. Japan and the United States increased sales by 18% and 15%, respectively. 

Failure analysis may reveal that a specific manufacturing problem, such as a flaw in the casting process or a material discrepancy, caused the failure. Understanding the root cause is critical for adopting corrective actions. With the information from failure analysis, the manufacturer can make informed decisions to improve the component's design or choose alternative materials that provide more excellent durability and performance. Corrective actions based on failure analysis help to prevent similar failures in future production batches. This is critical for protecting the vehicle brand's reputation and ensuring consumer satisfaction.

Regional Analysis

North America Dominates the Global Market

The global failure analysis market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global failure analysis market shareholder, and it is estimated to grow at a CAGR of 8.7% over the forecast period. The North American market's growth can be linked to the widespread availability of advanced microscopy equipment and the existence of essential industry players actively involved in nanotechnology. Some of the industry's major players, including Danaher and Thermo Fisher Scientific, are headquartered in the United States. The United States and Canada were among the early adopters of failure analysis techniques such as electron microscopes, digital microscopes, and confocal microscopes. The automotive industry places a high value on failure analysis due to the presence of corporations like General Motors and Ford that rely primarily on automation.

Furthermore, the United States is a leader in crude oil production, with numerous oil rigs dispersed across North America. The need for failure analysis approaches has become more apparent following the destructive effects of many oil rig catastrophes, the most notorious of which is the Deepwater Horizon oil spill in 2010, which released over 4.5 million barrels of oil into the sea due to a mechanical failure. For the past many years, the country has seen severe infrastructure failures. Two recent examples, an intense heat wave that pushed California's power grid to its limits in September 2022 and the failure of Jackson, Mississippi's water system during flooding in August, demonstrate how a growing maintenance backlog and climate change are transforming the 2020s and 2030s into a golden age of infrastructure failure. 

Asia-Pacific is anticipated to exhibit a CAGR of 9.0% over the forecast period. The uncertainty about the efficiency of failure analysis equipment is a significant market driver in the Asia-Pacific region. The high cost of failure analysis technology limits its adoption by cost-conscious small and medium-sized companies. According to the OECD, the Asia sector has a significant proportion of MSMEs, many of which are privately owned. The industry also has a high rate of low-skilled employment and labor informality. According to the ASEAN Main Portal, ASEAN has 70 million MSMEs, which account for 97.2% to 99.9% of all establishments in ASEAN Member States.

However, there is a growing need for advanced error detection and correction solutions among large organizations in Asia-Pacific. Taiwan, China, Japan, South Korea, and India are growing as critical players in the electronics and semiconductor sectors, with some already having established market presence. This makes APAC a potential income-creation market with a double-digit CAGR. Asia-Pacific is emerging as a critical automobile market hub. Population density drives up demand for passengers and advanced vehicles, prompting manufacturers to invest in new technologies like electric and hybrid automobiles to suit consumer needs. China sold 30.09 million vehicles in 2023, making it the world's largest car seller. This includes 4.91 million vehicles transported internationally, representing a 58% increase from 2022. The vehicle industry strongly demands failure analysis tools and software because components may fail, resulting in serious accidents.

The European market accounted for a moderate revenue share in 2023. The semiconductor and electronics industries' demand for failure analysis and the growing use of focused ion beam microscopes drive revenue growth in the region. Germany is a global leader in manufacturing and distributing electrical and electronic equipment, with several R&D facilities and manufacturers. Focused ion beams are widely utilized in electronic manufacturing for several applications, including autos, hospitals, residences, and factories. For example, Western Europe's electronic equipment output is predicted to expand by 2.2% in 2023. This is expected to rise to 2.9% in 2024, 3.9% in 2025, and 4.1% in 2026. Preventing engineering structural failure involves extensive knowledge and experience and a multidisciplinary and multi-scale strategy based on size and time constraints.

Report Scope

Report Metric Details
Segmentations
By Technology
  1. Energy Dispersive X-Ray Spectroscopy (EDX)
  2. Secondary Ion Mass Spectroscopy (SIMS)
  3. Focused Ion Beam (FIB)
  4. Broad Ion Milling (BIM)
  5. Reactive Ion Etching (RIE)
  6. Scanning Probe Microscopy (SPM)
By Application
  1. Electronics and Semiconductor
  2. Industrial Science
  3. Material Science
  4. Bioscience
Company Profiles Thermo Fisher Scientific, Inc. Hitachi High-Technologies Corporation Carl Zeiss JOEL, Ltd. TESCAN OSRAY HOLDING Bruker Semilab A&D Company, Ltd. HORIBA, Ltd. Leica Microsystems GmbH Veeco Instruments Oxford Instruments Eurofins Scientific
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global failure analysis market is segmented based on technology, application, and region.

The technology is further segmented into Energy Dispersive X-ray spectroscopy (EDX), Secondary Ion Mass Spectroscopy (SIMS), Focused Ion Beam (FIB), Broad Ion Milling (BIM), Reactive Ion Etching (RIE), Scanning Probe Microscopy (SPM).

Focused Ion Beam (FIB) accounts for the largest share of the market.

Focused Ion Beam (FIB)

Focused Ion Beam (FIB) is a flexible technology for imaging and microfabrication. In failure analysis, FIB uses a focussed beam of ions, usually gallium, to remove material from a sample with high precision. This allows for the development of cross-sectional views, sample extraction at precise sites, and the deposition of protective coatings. FIB is frequently used to prepare samples for transmission electron microscopy (TEM) and study materials' interior structure. It is critical for detecting flaws, understanding material properties, and doing extensive investigations on semiconductor devices and other sophisticated materials.

Energy Dispersive X-Ray Spectroscopy (EDX)

Energy Dispersive X-ray spectroscopy (EDX) is a failure analysis technique determining a material's elemental composition. X-rays are released after blasting a sample with high-energy electrons, and their energy distribution is studied. This enables the identification and quantification of components found in the sample. EDX helps determine the chemical composition of samples at the micro- and nanoscale, which aids in the study of material flaws, contamination, and failure processes in various industries, including electronics and materials research.

The segment can be bifurcated by application into Electronics and Semiconductors, Industrial Science, Material Science, and Bioscience.

Electronics and semiconductors occupy the significant share of the market.

Electronics and Semiconductor

The Electronics and Semiconductor application investigates difficulties concerning electronic components, integrated circuits, microprocessors, and semiconductor devices. Techniques like Energy Dispersive X-ray spectroscopy (EDX), Focused Ion Beam (FIB), and Scanning Probe Microscopy (SPM) are critical for finding defects, studying material composition, and understanding failure modes in electronics. This application is crucial to the reliability and performance of components in consumer electronics, telecommunications, and semiconductor production industries. The electronics and semiconductor sectors are becoming more important due to the increased use of robots and automation in manufacturing electronic gadgets. This has boosted the demand for high-density, integrated, and miniaturized components to build smart devices, wearables, and industrial equipment.

Industrial Science

Failure analysis in the Industrial Science application covers issues in various industries, including manufacturing, materials processing, and mechanical systems. Broad Ion Milling (BIM) and Reactive Ion Etching (RIE) are methods used to investigate the structural integrity, wear characteristics, and failure causes of materials used in industrial machinery, equipment, and components. This program helps to optimize manufacturing processes, improve product quality, and avoid unexpected failures in industrial environments.

Market Size By Technology

Recent Developments

  • January 2024- Hitachi Energy completed its acquisition of COET.
  • August 2023- TESCAN will showcase its newest scientific discovery, the TESCAN TENSOR. This cutting-edge medium voltage, near-UHV, integrated 4D-STEM is designed for efficient, precise, and comprehensive nanoscale surface investigation, representing a significant advancement in materials science.
  • January 2024- Bruker announced an agreement to acquire Chemspeed.

Top Key Players

Thermo Fisher Scientific, Inc. Hitachi High-Technologies Corporation Carl Zeiss JOEL, Ltd. TESCAN OSRAY HOLDING Bruker Semilab A&D Company, Ltd. HORIBA, Ltd. Leica Microsystems GmbH Veeco Instruments Oxford Instruments Eurofins Scientific Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Failure Analysis Market?
Failure Analysis Market size will grow at approx. CAGR of 8.5% during the forecast period.
Some of the top prominent players in Failure Analysis Market are, Thermo Fisher Scientific, Inc., Hitachi High-Technologies Corporation, Carl Zeiss, JOEL, Ltd., TESCAN OSRAY HOLDING, Bruker, Semilab, A&D Company, Ltd., HORIBA, Ltd., Leica Microsystems GmbH, Veeco Instruments, Oxford Instruments, Eurofins Scientific, etc.
North America has held a dominant position in the Failure Analysis Market, with the largest market share.
The region with the most rapid expansion in the Failure Analysis Market is Asia Pacific.
The global failure analysis market is segmented based on technology, application, and region.


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