3D Metrology Market by Product Type
(CMM, ODS, VMM, 3D AOI, 3D X-ray &CT), Application (Quality Control & Inspection, Reverse Engineering, Virtual Simulation), Offering, End-user Industry and Geography (2022-2027)
According to MarketsandMarkets, the 3D metrology market is projected to grow from USD 10.6 billion in 2022 to reach USD 15.9 billion by 2027 ; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.4% from 2022 to 2027.
The growing use of 3D data for modeling and analysis in various industries, increased research and development (R&D) investments in 3D metrology is expected to fuel the growth of the 3D metrology market.
Impact of COVID-19 on 3D metrology market size and forecast
The outbreak and the spread of COVID-19 have affected the 3D metrology market. The impact of the COVID-19 outbreak impacted global operations across various industries in different regions. The adverse effects of the virus became more prevalent in locations where customers, suppliers, or manufacturers conduct business, as the companies experienced constrained supply or curtailed demand that provided material impacts, thereby impacting the overall 3D metrology market.
This is due to personnel restrictions, limited production, delayed purchases, and disruptions in the supply chain, coupled with restrictions on cross-border trade, resulting in delays in the completion of raw material and component consignments, particularly from China. The spread of COVID-19 has affected various industries such as automotive, heavy machinery, electronics manufacturing, and aerospace & defense due to the minimal operations of companies.
However, the medical industry is the least impacted industry due to COVID-19. Public health measures such as complete lockdowns and social distancing have affected the operations and businesses of the 3D metrology service providers. COVID-19 has led to the decline in demand for 3D metrology systems from the Americas and Europe. Also, there is a decline in capital investment across industries in 2020.
Despite the short-term effects of COVID-19 in 2020, the companies in the 3D metrology market are expecting to make recovery, especially from the APAC market. Localizing businesses and promoting digitalization are a few challenges that the companies will face in 2022 post-COVID-19.
3D metrology Market Dynamics
Driver : Increased research and development (R&D) investments in 3D metrology
The investments in R&D for developing new metrology products and solutions have increased across the globe. Hexagon, FARO Technologies, Nikon Corp., and ZEISS Group, the major companies in the 3D metrology market, have been consistently investing in R&D (~10% of their overall revenue) for developing 3D metrology systems over the past 3 years (2018 to 2021), as per the information stated in their annual reports.
Constant R&D in the field of electronics is leading to rapid technological changes. With the advancements in measurement technology, new products are replacing traditional electronics. The ongoing miniaturization of electronic components has consequently fueled the adoption of 3D metrology systems for precision measurement and inspection applications. Electronics manufacturers are expanding their manufacturing facilities to achieve a higher output in terms of productivity and meet the increased demand. Metrology solutions are widely used across the consumer electronics industry to ensure the quality of parts and products, such as actuators, printed circuit boards (PCBs), smartphone enclosures, lead frames, sensors, speakers, smart home devices, and white goods.
Restraint : High cost associated with setting up 3D metrology facility
Manufacturers usually set up their 3D metrology facilities or contract third parties to incorporate metrology into their product development and production processes. The overall cost associated with setting up a 3D metrology facility includes measuring equipment cost, installation cost, and maintenance cost, which is an extensive investment for small- and medium-sized enterprises. The setting up of a complete 3D metrology department makes it difficult for companies to achieve the targeted return on investment (ROI). Besides, it is a time-consuming and complicated process. In addition, a high cost is incurred in maintaining, upgrading, and standardizing metrology tools and software, hiring meteorologists, and providing regular training.
Opportunity : Rise in demand for industry 4.0
Industry 4.0 or smart factory is a new phase of the industrial revolution, which has linked the manufacturing sector and information technology. It is being adopted in manufacturing facilities to increase productivity by maximizing asset utilization, minimizing downtime, and improving labor efficiency. The evolution of smart factories has led to a growth in demand for 3D metrology systems. The robots used in manufacturing plants are being integrated with in-line inspection systems to provide real-time measurement data analysis. This enables easy measuring in the measurement labs and frequent quality testing. The advent of the Industrial Internet of Things (IloT) is fueling the adoption of automation and in-line metrology, which is expected to drive the growth of the 3D metrology software market from 2022 to 2027.
Challenge : Lack of simplified software solutions
Companies employ new and updated 3D metrology software that enable noncontact, fast, accurate, and automated testing. The updated software—comprising both analogous and conventional technologies—provide an advanced user interface to metrology system operators to improve the quality of the analysis. However, new 3D metrology software solutions available in the market are complex to operate and require appropriate training. This has led 3D metrology systems manufacturers to undertake training sessions and provide clients with customer support engineers who can deliver on-demand information about the product
“3D metrology market for 3D automated optical inspection (AOI) is expected to grow at the highest CAGR during the forecast period.”
3D AOI inspection technology is expected to exhibit the highest growth during the forecast period. 3D AOI inspection technology serves as an effective tool for volumetric and co-planarity inspections. It also provides details on the height information of lead tips, ball grid arrays (BGAs), chip components, and reflowed solder fillets, as well as the critical dimensional information of any height-sensitive component. Major factors driving the segmental growth include rising demand for high-quality electronic parts, demand for better efficiency by electronics manufacturing (EMS) firms, and increasing demand for 3D AOI systems in automotive electronics. Automated optical inspection is a significant tool used in the manufacture and testing of PCBs. The 3D metrology market for the 3D AOI segment is expected to witness the highest growth during the forecast period.
“3D metrology market for services offering is expected to grow at the highest CAGR from 2022 during forecast period”
The 3D metrology market for services offering is expected to grow at the highest CAGR from 2022 to 2027. The high cost incurred in setting up a 3D metrology facility and the lack of 3D metrology experts are the major factors for the growth of the market for 3D metrology services. Manufacturing companies are outsourcing their 3D metrology measurement and inspection work to service providers to achieve short measuring times, reduced measurement uncertainty, and process stability, thereby driving the 3D metrology services market.
“ 3D metrology market for hardware offering is expected to hold the largest share of the market during the forecast period”
The high demand for 3D metrology equipment in the aerospace & defense and automotive industries for quality control and inspection applications is one of the major drivers for the growth of the 3D metrology market for hardware. For instance, Volvo Car Body Components (VCBC), an automotive production plant based in Olofström, Sweden, is utilizing several metrology solutions, including AT960, LAS-XL, and T-Scan 5 offered by Hexagon (Sweden). The company is engaged in the production of car body parts ranging from hoods and roofs to doors and subassemblies. Moreover, the growing use of 3D metrology equipment for dimensioning and inspection applications is also contributing to the growth of the 3D metrology market for hardware.
“3D Metrology market in APAC estimated to grow at the fastest rate during the forecast period”
The 3D metrology market in APAC is expected to grow at the highest CAGR during the forecast period. 3D metrology companies are expanding their presence in APAC, where China, Japan, and India are expected to be the major countries driving the growth of the 3D metrology market. Funding for R&D and an extensive industrial base are some of the major factors that make APAC a dynamic region for 3D metrology, with China and Japan being the major contributors.