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Test and Measurement Equipment Market: 5G Infrastructure Validation and Semiconductor Complexity Growth to Drive Market Growth

The global test and measurement equipment market was valued at approximately USD 37.62 billion in 2025 and is projected to expand at a compound annual growth rate of approximately 4.54% through 2035, reaching approximately USD 58.66 billion by the end of the forecast period. Test and measurement encompasses the full spectrum of electronic instrumentation — oscilloscopes, spectrum analyzers, signal generators, network analyzers, automated test equipment, data acquisition systems, and associated calibration services — that enables engineers, manufacturers, and researchers to characterize, validate, and troubleshoot electronic systems across the product lifecycle from R&D through serial production. General-purpose test equipment dominated the market in 2025 with approximately 43.6% of product revenues, while calibration services represented approximately 37% of service revenues.

The market experienced a measurable cyclical recovery in 2025 following two years of normalization from elevated 2022 to 2023 demand peaks. Keysight Technologies — the world’s largest T&M vendor by revenue — reported fiscal year 2025 revenue of USD 5.4 billion, up 8%, with CEO Satish Dhanasekaran characterizing the year as “Keysight’s return to growth” with order momentum accelerating through the year. Teradyne reported full-year 2025 revenue of USD 3.19 billion, up 13%, driven by AI-related demand in compute, networking, and memory semiconductor test. These results, anchored in authentic SEC filings, document a T&M market that has moved decisively from post-peak correction into expansion supported by 5G infrastructure rollout, semiconductor complexity growth, electric vehicle validation requirements, and Industry 4.0 automation adoption.

Executive Snapshot

What is the current market size and projected growth trajectory for the global T&M equipment market?
The market was valued at approximately USD 37.62 billion in 2025, projected to reach approximately USD 58.66 billion by 2035 at a 4.54% CAGR. North America dominated with approximately 42% share in 2025, with Asia-Pacific projected as the fastest-growing region driven by semiconductor manufacturing investment and telecom infrastructure deployment.

What did Keysight’s fiscal year 2025 results confirm about T&M market recovery?
Keysight Technologies reported on November 24, 2025 fiscal year 2025 revenue of USD 5.4 billion, up 8% year-over-year, with Q4 revenue of USD 1.42 billion compared with USD 1.29 billion in Q4 2024. The company announced a new USD 1.5 billion share repurchase program alongside results, reflecting confidence in sustained demand. In its FY2025 Annual Report, Keysight disclosed investment of over USD 1 billion in R&D during fiscal 2025 — the company’s largest single-year R&D commitment — to advance its solutions across 5G, semiconductor, aerospace, defense, and automotive end markets.

What did Teradyne’s 2025 results confirm about AI-driven semiconductor test demand?
Teradyne reported in February 2026 full-year 2025 revenue of USD 3.19 billion, up 13% from 2024, with Q4 2025 revenue of USD 1.08 billion — the company’s second-highest quarterly revenue in history. CEO Greg Smith stated that Q4 growth was fueled by AI-related demand in compute, networking, and memory within the Semiconductor Test business. The Semiconductor Test Group grew revenue 19% year-over-year in 2025, representing nearly 80% of Teradyne’s total revenue and documenting how AI semiconductor architecture complexity is directly expanding the addressable ATE market.

How is 5G infrastructure rollout driving T&M equipment demand?
5G network infrastructure deployment requires comprehensive RF signal validation at frequencies above 24 GHz — a testing requirement that demands higher-bandwidth spectrum analyzers, vector network analyzers, and signal generators than 4G validation needed. Rohde & Schwarz’s collaboration with Qualcomm on 6G testbed development, and Keysight’s 5G network testing solutions portfolio expansion, document how 5G and pre-6G infrastructure investment is sustaining elevated RF test equipment demand through the forecast period.

How is the CHIPS Act semiconductor manufacturing investment affecting T&M equipment demand?
The U.S. Commerce Department announced in January 2025 the CHIPS America flagship R&D facility — part of the broader USD 52.7 billion CHIPS and Science Act investment program — directly creating demand for advanced semiconductor test equipment at new domestic chip fabrication facilities. ATE vendors including Teradyne, Advantest, and Keysight are the primary beneficiaries of semiconductor fab capital investment that requires test and measurement infrastructure as a prerequisite for volume production qualification.

Which end-use segment drives the largest T&M equipment demand?
The automotive and transportation segment dominated the T&M equipment market at approximately 23.1% of revenues in 2025, driven by electric vehicle powertrain validation, ADAS radar and camera testing, battery management system characterization, and in-vehicle networking compliance verification. Keysight’s expansion of its automotive test laboratory in Novi, Michigan in Q1 2025 directly reflects this demand concentration, providing dedicated electric vehicle and autonomous driving test infrastructure for automotive OEM customers.

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Market Dynamics: Test and Measurement Equipment Market

  • Keysight’s return to 8% revenue growth in FY2025 confirms T&M market cyclical recovery with order momentum accelerating. Keysight’s Q4 FY2025 results and USD 1.5 billion share repurchase program signal management confidence in sustained demand recovery, with the company’s USD 1 billion+ R&D investment positioning it for multi-year growth across 5G, semiconductor, and automotive test.
  • AI semiconductor architecture complexity is expanding the automated test equipment addressable market faster than traditional chip scaling trends. Teradyne’s 19% semiconductor test revenue growth in 2025, driven by AI compute, networking, and memory chip test demand, demonstrates how AI-driven semiconductor complexity creates incremental ATE demand beyond what unit volume growth alone would generate.
  • 5G and pre-6G infrastructure rollout is sustaining elevated RF test equipment demand through the forecast period. Multi-band 5G infrastructure deployment across North America, Europe, and Asia-Pacific, combined with early 6G technology development programs at Rohde & Schwarz, Nokia, and Ericsson, is maintaining RF test equipment procurement at above-historical growth rates.
  • EV powertrain and battery validation testing is creating a structural new automotive T&M demand category. Electric vehicle OEM quality and safety certification requirements for battery management systems, power electronics, and charging infrastructure create dedicated T&M investment that conventional combustion powertrain testing did not require, structurally expanding the automotive T&M addressable market.
  • Software and T&M-as-a-service models are creating recurring revenue streams that improve T&M vendor economics. The shift from capital equipment sales toward software-defined instruments, managed test services, and T&M rental models is improving T&M vendor revenue predictability while enabling budget-constrained customers to access advanced test capability without capital expenditure.
  • Asia-Pacific semiconductor and telecom manufacturing investment is creating the fastest-growing regional T&M demand pool. CHIPS Act-equivalent semiconductor manufacturing investment programs in South Korea, Japan, Taiwan, and India — combined with China’s domestic semiconductor capability development — are creating structurally elevated Asia-Pacific T&M procurement at semiconductor fabs, component manufacturers, and network equipment suppliers.

Market Segmentation: Test and Measurement Equipment Market

By Testing Type
  • Equipment Testing
  • Software Testing
By Product Type
  • General Purpose Test Equipment
    • Oscilloscopes
    • Signal Generators
    •  Multimeters
    •  Logic Analyzers
    •  Spectrum Analyzers
    • Bert (Bit Error Rate Test)
    • Network Analyzers
    • Others
  • Mechanical Test Equipment
    • Non-Destructive Test Equipment
    • Machine Vision Inspection
    • Machine Condition Monitoring
By Service Type
  • Calibration Services
  • Repair Services/After-Sales Services
By Testing Lifecycle Stage
  • Research & Development (R&D) Testing
  • Design Validation Testing (DVT)
  • Production Testing
  • Field Testing
  • Service & Maintenance Testing
By Vertical
  • Data Centers
  • Aerospace & Defense
    • Commercial Aviation
    • Space
    • Defense
  • Automotive
  • Telecommunications
  • Semiconductors
  • Industrial Manufacturing
  • Healthcare & Medical Devices
  • Others
By Geography
  • North America: United States, Canada, and Mexico
  • Europe:  Germany, U.K., France, Italy, Spain, Russia, Benelux, Nordics, and Rest of Europe
  • Asia Pacific: China, Japan, India, South Korea, Australia, New Zealand, Taiwan, South East Asia, and Rest of Asia Pacific
  • Latin America: Brazil, Argentina, Columbia, Chile, Peru, and Rest of Latin America
  • Middle East: Saudi Arabia, United Arab Emirates, Oman, Qatar, and Rest of Middle East
  • Africa: Nigeria, Egypt, Ethiopia, South Africa, and Rest of Africa

Key Growth Drivers: Test and Measurement Equipment Market

  1. AI semiconductor complexity growth is expanding ATE demand beyond historical unit volume-driven procurement. Teradyne’s 19% semiconductor test growth in 2025 documents how AI chip architecture complexity creates incremental test equipment demand per unit that conventional semiconductor test market models did not anticipate.
  2. 5G and 6G infrastructure rollout is sustaining RF test equipment demand above historical averages. Multi-band 5G deployment requiring millimeter-wave test capability, combined with 6G technology development investment, is maintaining RF T&M demand at elevated procurement levels through the forecast period.
  3. CHIPS Act domestic semiconductor manufacturing investment creates captive T&M equipment demand at new U.S. fabs. USD 52.7 billion in U.S. semiconductor manufacturing investment creates captive ATE, metrology, and process control T&M demand at new domestic fab facilities that must be equipped before volume production qualification.
  4. EV powertrain and battery validation creates a structural new automotive T&M demand category. Electric vehicle quality and safety certification requirements for battery management, power electronics, and charging systems create dedicated T&M investment independent of conventional automotive production volumes.
  5. Keysight’s USD 1 billion+ R&D investment in FY2025 is sustaining innovation pipeline depth across the T&M product spectrum. The industry’s largest vendor investing over USD 1 billion in R&D in a single year signals commitment to sustained product innovation that expands both the addressable market and the competitive moat of leading T&M platform vendors.
  6. Industry 4.0 and IIoT adoption is increasing in-line and predictive maintenance testing needs across manufacturing. Factory automation and IIoT sensor network deployment are creating new in-line measurement and quality control T&M demand that supplements traditional end-of-line testing with continuous process monitoring investment.

Regional Outlook: Test and Measurement Equipment Market

  • North America: Largest established market at approximately 42% of global revenues in 2024. Keysight’s USD 5.4 billion revenue and Teradyne’s USD 3.19 billion 2025 results anchor the region’s dominant T&M vendor concentration. CHIPS Act semiconductor investment and automotive EV test expansion are the primary near-term growth drivers.
  • Asia-Pacific: Fastest-growing regional market, projected highest CAGR through 2035. Asia-Pacific accounted for approximately 41.7% of T&M revenues in 2025 and is expected to maintain or grow this share through semiconductor manufacturing investment, 5G infrastructure rollout, and electronics manufacturing expansion.
  • Europe: Significant established market at approximately USD 8.0 billion in 2025. Germany leads with approximately 23.8% of European revenues through its automotive and industrial manufacturing T&M base. Rohde & Schwarz — anchored in Munich — leads European T&M technology development with revenue exceeding EUR 3 billion for the first time in fiscal 2024.

Competitive Landscape: Test and Measurement Equipment Market

Notable key players include Keysight Technologies, Rohde & Schwarz, Tektronix (Ralliant), NI (National Instruments), Fluke Corporation, Anritsu Corporation, Advantest, Yokogawa Electric, Teradyne, Fortive Corporation, VIAVI Solutions, AMETEK Inc., EXFO Inc., Spirent Communications, HIOKI E.E. Corporation, RIGOL Technologies, and Robert Bosch GmbH.

Recent Developments

  • Keysight Technologies reported on November 24, 2025 fiscal year 2025 revenue of USD 5.4 billion, up 8% year-over-year, with Q4 revenue of USD 1.42 billion — its strongest quarterly performance since FY2023 — and announced a new USD 1.5 billion share repurchase program, confirming management confidence in sustained demand recovery across 5G, semiconductor, automotive, and aerospace end markets.
  • Teradyne reported in February 2026 full-year 2025 revenue of USD 3.19 billion, up 13% year-over-year, with Q4 2025 revenue of USD 1.08 billion — the second-highest quarterly revenue in company history — driven by exceptional AI-related demand in compute, networking, and memory semiconductor testing, with the Semiconductor Test Group growing 19% year-over-year.
  • The U.S. Commerce Department announced in January 2025 the CHIPS America flagship R&D facility as part of the USD 52.7 billion CHIPS and Science Act investment program, directly creating captive domestic demand for advanced semiconductor test equipment at new U.S. chip fabrication facilities that must be instrumented before volume production qualification.

Consultant POV

The T&M equipment market has completed its 2024 inventory correction and moved into a demand-driven expansion phase anchored by three structural growth vectors: AI semiconductor complexity expanding ATE demand beyond unit volume-driven procurement, 5G and pre-6G RF infrastructure sustaining millimeter-wave test equipment investment, and electric vehicle powertrain validation creating an entirely new automotive T&M category. Keysight’s 8% revenue growth and USD 1 billion+ R&D commitment in FY2025 represent the clearest vendor-level confirmation that the market recovery is real and broad-based rather than segment-specific. The market is expected to grow at a sustained mid-single-digit pace through 2035, with premium growth available in ATE, software-defined instrumentation, and T&M-as-a-service models that address the increasing budget and speed-to-market pressures facing T&M customers across all end markets.

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About Constancy Researchers Private Limited

Constancy Researchers is a global market intelligence and strategic advisory firm helping organizations navigate complex markets and make high-impact decisions with confidence. In an environment defined by rapid technological change, shifting demand patterns, and evolving competitive dynamics, we provide clarity where it matters most—at the point of decision-making. By combining deep industry understanding, rigorous analytics, and structured thinking, we enable leadership teams to identify opportunities, mitigate risks, and build strategies that drive sustainable growth.

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