Failure Analysis - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Failure Analysis Market size is estimated at USD 4.94 billion in 2024, and is expected to reach USD 7.11 billion by 2029, growing at a CAGR of 7.56% during the forecast period (2024-2029).

Failure analysis is the process of gathering and analyzing data to determine the cause of failure and determine corrective actions or liability. It is crucial to understand the root cause of failure 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.

Root Cause Analysis (RCA) is crucial for continuous quality improvement across industries. It begins by examining incidents, defects, and quality issues to identify their root causes. This process helps organizations address factors compromising product or service quality, preventing future recurrences. RCA also reveals process inefficiencies, enhancing both quality and operational efficiency. As RCA expands the scope of failure analysis, its growth is expected to create new opportunities in the failure analysis market.

Aged infrastructure poses a threat to the system, as unstable infrastructure raises the chances of breakdowns during severe and prolonged strain, which is particularly worrisome during extreme circumstances. Infrastructure resiliency has recently come into focus, especially as the number and severity of natural disasters are increasing, causing significant economic impacts and loss of life.

In addition to this, the increasing requirement for failure analysis among automobile manufacturers, who are also employing vision and AI-based analysis tools for performance analysis, dynamic vehicle studies, accident reconstruction, etc., is augmenting the market. Besides this, the inflating investments in the advancement of the nanotechnology sector are anticipated to fuel the failure analysis market over the forecasted period.

The cost of failure analysis equipment, including transmission electron microscopes (TEM), scanning electron microscopes (SEM), and focused ion beam systems, is considerably high. In contrast, optical microscopes are less expensive than electron microscopes despite the fact that the latter provides more advanced capabilities and a wider range of applications.

In 2023, the semiconductor industry's global significance continues to escalate. Semiconductor chips are not only integral to the essential technologies of today but are also paving the way for the transformative innovations of tomorrow.

However, alongside its promising future, the industry faces a myriad of challenges. Persistent US-China tensions are reshaping the global supply chain, leading to heightened government restrictions on chip sales to China, which remains the world's largest semiconductor market. Addressing these challenges, policymakers are urged to implement strategies that bolster US leadership in semiconductor design, enhance the domestic workforce through comprehensive immigration and STEM education reforms, and advocate for free trade and market access to sustain the industry's growth trajectory.

Failure Analysis Market Trends

Growth in the Construction Sector Boosting the Demand for Furniture Products

• A large number of companies provide failure analysis for the electronics and semiconductor industry, considering the high usage of these services in the sector, which in turn resulted in its highest market share.
• Failure analysis in electronics and semiconductors helps identify and categorize defects during the semiconductor fabrication, such as shorts, opens, contamination, or material inconsistencies. The primary aim of failure analysis is to understand the underlying issues that lead to failures, improve manufacturing processes, enhance product reliability, and ensure compliance with quality standards.
• The continuous advancements in semiconductor technology, such as the development of smaller, more complex integrated circuits (ICs) and system-on-chip (SoC) designs, increase the complexity of failure modes, thus driving the demand for thorough failure analysis.
• For instance, in February 2024, NVIDIA's hardware products are significant engineering examples, with numerous components that function together seamlessly. As the complexity of these products increases, so does the possibility of component failures. The Failure Analysis Lab at NVIDIA focuses on resolving challenges at the silicon and board levels. This team is known for tackling challenging problems in the semiconductor industry by determining the underlying cause of malfunctions, whether the semiconductors stem from a design flaw, a production error, a reliability test failure, or foreign contaminants.
• Higher semiconductor sales result in increased production volumes. As production scales up, the likelihood of defects and failures also rises, necessitating rigorous failure analysis to maintain quality. For instance, according to the SIA (Semiconductor Industry Association), semiconductor sales in China reached USD 14.76 billion in January 2024. This figure represents substantial growth compared to January 2023, when sales in China were USD 11.66 billion.

Asia-Pacific is Expected to Hold Significant Market Share

• Asia-Pacific is expected to grow fastest during the forecast period due to developing economies like China and India. Countries such as Japan, Thailand, and Malaysia are also home to increasing manufacturing and public-private infrastructure industries. The region's failure analysis market is experiencing growth due to several critical factors, such as the rise in urbanization and industrialization, significant investment in infrastructure development, and decreasing equipment costs.
• Asia-Pacific is united in experiencing substantial economic and population growth, which is anticipated to continue over the years and fuel infrastructure development, further supporting the market growth. Failure analysis is a forensic engineering component dedicated to identifying the underlying reasons behind infrastructure failures. Pinpointing these causes paves the way for implementing necessary measures to prevent future occurrences. The repercussions of structural failures can be severe, encompassing human, social, environmental, and financial consequences. Hence, the significance of failure analysis cannot be overstated for organizations heavily reliant on infrastructure.
• India's construction industry has surged, propelled by sustainable policies and a service-centric economic shift. The Indian government's emphasis on large-scale infrastructure investments underscores its commitment to driving growth. According to IBEF, in the 2024-25 Interim Budget, the allocation for capital investment in infrastructure increased by 11.1% to reach INR 11.11 lakh crore (equivalent to USD 133.86 billion), representing 3.4% of the GDP.
• In addition, the growing expansion of semiconductor manufacturing facilities in the region will drive the demand for failure analysis. For instance, in March 2024, The Indian government approved establishing three new semiconductor manufacturing facilities under the country's flagship incentive program.

Failure Analysis Industry Overview

The failure analysis market is fragmented and highly competitive, featuring several key players. These leading companies, known for their significant market presence, are actively seeking to expand their operations across various industry sectors. Many of these firms are employing strategic collaborations to bolster their market share and profitability. Companies operating within this market are also engaging in acquisitions to enhance their product capabilities. Notable players in this sector include Presto Engineering Inc., TUV SUD, Rood Microtec GmbH, Eurofins EAG Laboratories, and Eurofins Maser BV.

May 2024 - Hitachi High-Tech Corporation unveiled its latest offerings, the SU3900SE and SU3800SE High-Resolution Schottky Scanning Electron Microscopes. These devices are designed to deliver precise observations of large, weighty specimens at the nano level. Notably, they have a camera navigation feature that seamlessly merges images, facilitating operators to view the complete specimen. This enhancement not only aids in pinpointing areas of interest but also elevates the overall user experience.

January 2024 - India's spotlight once again turned to electric vehicles after a Volvo C40 Recharge electric SUV, priced at a hefty INR 63 lakh, caught fire in a recent accident. While the exact cause remains elusive, the incident underscores the criticality of product failure analysis. Studies underscore this, revealing that up to 80% of new products falter within their inaugural year on the market.

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