LONDON--(BUSINESS WIRE)--Technavio’s latest report on the test and measurement (T&M) market in Thailand provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Anju Ajaykumar, a lead analyst at Technavio for research on test and measurement, says, “Growth in the manufacturing sector, especially the automotive industry, is expected to propel demand for test and measurement equipment in Thailand. For instance, the initiation of the second phase of Thailand's Eco Car projects has attracted investment close to USD 4.3 billion, which should lead to an increase in total production to reach 1.5 million by the end of 2016.”
Thailand is the world's largest manufacturer of one-ton pick-up trucks, and the largest vehicle manufacturer in Southeast Asia. In addition, the country is the 12th largest automotive manufacturer in the world. In 2014, vehicle production in Thailand was 1.88 million units, an increase of close to 88% since 2009. The increase in export and domestic demand from Thailand is expected to lead to capacity expansion and testing, thereby driving the demand for T&M equipment in Thailand.
The top three emerging trends driving the test and measurement market in Thailand according to Technavio heavy industry research analysts are:
- Increased demand for energy-efficient construction equipment
- Provision of attractive financing options
- Growth of equipment rental business
Emergence of IIoT
The emergence of IIoT is expected to create demand for ICs, not only in Thailand but also in its neighboring export destinations, which are expected to adopt IoT at a much faster rate than the country.
The use of IoT technologies in manufacturing involves integration of machinery with a network of software and sensors. It plays a significant role in the present competitive market by improving profitability and eliminating risks. IIoT provides better insights on equipment used by companies. IoT with asset performance management software can provide details regarding the importance of each equipment and how it should be maintained to avoid failures. IIoT combines machines with analytics through which valuable insights can be obtained. It helps reduce downtime and improve efficiency. IIoT also provides a clear picture on equipment maintenance that aids to optimize maintenance schedules and cycles.
Demand for ATE
“Many semiconductor IC vendors are going fabless in an attempt to minimize the overheads in the functioning and maintenance of foundries. These vendors prefer to focus on the design and development; hence, they frequently outsource their fabrication and other foundry-related activities to companies or fabs specialized in providing such foundry solutions,” says Anju.
According to Thai Electrical and Electronics Institute, import of IC reached USD 10 billion and export to USD 8 billion in 2014.
As a result, the ratio of foundries to fabless companies in the global semiconductor IC market has become almost 1:11. Therefore, fabless companies have become increasingly dependent on the limited number of fabs available worldwide. To meet the expectations of fabless companies and maintain a positive customer relationship, foundries are increasingly purchasing ATE. The increasing importance of ATE in semiconductor fabs is a major trend that is expected to drive the ATE market in Thailand during the forecast period.
Development of integrated and application-specific test equipment
The demand for integrated test equipment has increased significantly. End-users of test equipment prefer integrated test equipment that can perform multifunctional operations better than traditional standalone equipment. Modular test equipment is growing more rapidly than traditional test equipment in terms of adoption. The ability to perform multiple tests simultaneously is a key feature of the modular test equipment that helps reduce costs and time. This has created an increase in the need for integrated test equipment worldwide. GPTE vendors encompassing various geographies have sensed the need for this equipment worldwide and have started providing the same to their customers to differentiate themselves from their competitors.
The need for test equipment of new users, other than the traditional communications and aerospace and defense industries, will contribute to the growth of the T&M market in Thailand. Vendors have started manufacturing application-specific test equipment to meet customers' needs. They have also started incorporating additional features into standard equipment based on the intended usage of end-users. The demand for test equipment is expected to increase in fields such as green engineering, where the equipment would be used to measure product conformance and for design testing.
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