The UK calibration services market is projected to reach £7.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.4% between 2024 and 2032. This growth is fuelled by several key factors, including the rise of advanced driver-assistance systems (ADAS) in vehicles and increased military spending in the Asia-Pacific region.
The demand for calibration services in the automotive sector is rapidly increasing due to the widespread adoption of ADAS features. Data reveals that the need for calibration in newer vehicles has quadrupled since 2014, surging from 6% to 27.6% in 2023. This reflects the increasing complexity of vehicles equipped with cameras, sensors, lidar, and radar systems, all of which require precise calibration for optimal performance.
Beyond the automotive sector, the calibration services market is benefiting from heightened geopolitical tensions in the Asia-Pacific region. China's military expansion has spurred significant defence spending in the region, exemplified by Australia's 'Top Gun' exercise, involving 140 aircraft and over 4,400 personnel. Maintaining the accuracy and reliability of this high-tech military equipment is crucial for efficient operations and safety, and calibration services are playing a vital role in ensuring these standards are met.
Key drivers of growth in the UK calibration services market include:
Increasing demand for vehicle comfort: As the need for vehicle comfort persists, the global demand for car leaf springs will rise, further boosting the need for calibration services.
Advancement of ADAS technology: The ongoing development of ADAS necessitates specialised calibration services, opening up new opportunities for industry players.
The UK calibration services market can be segmented into:
By Proofreading:
In-house: Calibration services conducted internally by manufacturers.
OEM: Calibration provided by the original equipment manufacturer.
Third-Party Vendor: Independent providers offering impartial calibration services for diverse equipment across various sectors. This segment dominated the market in 2023, accounting for 41% of market share.
By Service Type:
Mechanical: Calibration of mechanical components and systems.
Electrical: Calibration of electrical equipment and systems. This segment holds the largest market share, at 30% in 2023.
Dimensional: Calibration of measurements related to length, width, and thickness.
Thermodynamics: Calibration of temperature, pressure, and flow-related equipment.
By Application:
Industrial & Automation: Calibration services for industrial machinery, automation systems, and process control equipment.
Electronics: Calibration of electronic devices, test equipment, and components used in various industries.
Aerospace & Defence: Calibration services for aircraft, military vehicles, and defence-related equipment.
Communication: Calibration of telecommunication infrastructure, including antennas, base stations, and other communication systems.
Others: Calibration services for various other sectors, including healthcare, energy, and research & development.
Regional Analysis:
In 2023, the Asia-Pacific region dominated the global calibration services market, accounting for 34% of market share. The region's rapid industrial growth, coupled with the increasing demand for regulatory compliance and quality improvement, are driving this growth. Key markets in the region, including China, Japan, and India, are leading this trend.
Europe emerged as the fastest-growing region in 2023, with a 22% market share. The strong manufacturing and technology sectors in Europe, particularly in industries like automotive, aerospace, and electronics, are boosting demand for accurate calibration services. The region's focus on innovation and technological advancement is further propelling the market growth.
Key players in the UK calibration services market include:
Keysight Technologies Inc.
ABB Ltd.
Agilent Technologies Inc.
Endress+Hauser AG
Sulzer AG
Micro Precision Calibration Inc.
Optical Test and Calibration Ltd
Simco Electronics
Rohde & Schwarz GmbH & Co KG
Siemens Aktiengesellschaft
Tradinco Instruments
Transcat Inc.
Trescal Holdings Inc.
Key Takeaways for Industry Players:
Identify regions and segments with the highest potential for growth and competitive advantage.
Focus on service areas with the greatest profit potential and consider specialisation opportunities.
Invest in necessary equipment, technology, and staff to remain competitive.
Understand customer needs and tailor service offerings accordingly.
Recent Developments:
Trescal, a global leader in calibration services, has made several acquisitions in recent years, including A.A. Jansson in the United States, Lumadae and ACCI in Brazil, Q&Q in South Korea, and SP Metrology System in Thailand. These acquisitions represent a significant investment in the company's global expansion and market share.
The UK calibration services market is set to witness continued growth in the coming years, driven by the ongoing technological advancements, increased focus on quality and compliance, and rising global military spending. Industry players need to remain agile, invest in innovation, and cater to specific customer needs to stay ahead in this competitive landscape.