LONDON--(BUSINESS WIRE)--Technavio analysts forecast the test and measurement market in South Korea to grow at a CAGR of more than 4% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the test and measurement market in South Korea for 2016-2020. The demand for T&M from various end-user segments has been considered in determining the market size. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors in the market.
Technavio heavy industry analysts highlight the following four factors that are contributing to the growth of the test and measurement market in South Korea:
- South Korea in semiconductor space
- Growth in communication sector
- Increasing production of Li-ion batteries
- Center for innovation
South Korea in semiconductor space
According to Anju Ajaykumar, a lead analyst at Technavio for test and measurement research, “South Korea being the fourth largest importer of semiconductors and the second largest producer of semiconductors (the US being the first) worldwide, experiences high demand for T&M equipment. The semiconductor industry accounted for approximately 30% of the overall T&M market in 2015.”
The presence of two of the largest semiconductor companies, Samsung and SK Hynix, is one of the primary reasons for the growth of the semiconductor industry in South Korea. At present, these companies are ranked second and fourth with respect to semiconductor sales. Their market share is predicted to increase in the coming years due to their investments in R&D in an attempt to gain a competitive edge through the development of new technologies.
Growth in communication sector
End-users, such as mobile device manufacturers, telecommunication service providers, telecommunication service providers, mobile device manufacturers, and network equipment manufacturers, are increasingly adopting communication T&M solutions, which has propelled the market in South Korea.
Telecommunication service providers are anticipated to dominate the communication T&M market during the forecast period. South Korea offers significant growth opportunity for communication T&M equipment as end-users from the communication industry seek to offer their customers high-quality and high-performing services.
Increasing production of Li-ion batteries
The South Korean Li-ion market has grown significantly in the past few years. This is primarily due to efficient performance of li-ion batteries in various consumer and industrial products. High demand can be seen from the automotive industry for the development of electric vehicles (EVs).
The EV market in the country is experiencing rapid growth because of high investment from vendors and shifting consumer focus towards EV. Development of EV will also reduce the dependency on fossil fuels and can eliminate the fuel price fluctuation risk.
Moreover, South Korean companies, such as LG Chem and Samsung SDI, are major suppliers of EV batteries globally. Hence, the demand for EVs from other countries will also boost the Li-ion battery market in South Korea.
Center for innovation
South Korea has already developed into an innovation hub with high R&D activities in various sectors such as consumer electronics, automotive, and telecommunication. The country boasts of high R&D spending and has the highest R&D percentage of GDP. The country has the highest broadband penetration and boasts of high average peak connection speeds of approximately 50Mbps. The country’s tech-savvy population and its success in manufacturing and exporting cutting-edge electronics products has consolidated its position as a leader in technology. “The start-up culture is promoted by the mobile game developers and social media innovators and is further complemented by entrepreneurs with an interest in innovative concepts that are not inherent to the country and a willingness to take risks,” says Anju.
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