Market Trends of Failure Analysis Industry
This section covers the major market trends shaping the Failure Analysis Market according to our research experts:
Automotive Sector is Driving the Demand for Failure Analysis
- The automotive industry has constantly faced new challenges as the demand for inexpensive, high-quality components has repeatedly increased. Extreme diligence must be imparted to ensure that such components are designed and manufactured with sufficient quality to withstand various service environments.
- The automotive industry has witnessed rapid advancements in ADAS systems, connected vehicles, IoT devices, and smart sensors, which could prevent potential accidents due to malfunctioning of some of the vehicle's vital parts. According to a report published by the WHO in July 2021, approximately 1.3 million people lose their lives yearly due to road traffic crashes. Between 20 and 50 million more people suffer non-fatal injuries, with many incurring a disability due to their injury.
- Potential causes for automotive device failure may include product design, manufacturing processes, contamination of the source materials, product packaging, improper handling, and improper calibration. These factors have raised concerns over the quality of manufacturing automotive parts and the preventive measures that can be implemented to avoid such incidents.
- Recently, the Asia-Pacific witnessed considerable growth in the automotive industry due to the increasing demand for passenger and advanced vehicles. Passenger vehicles find increased usage due to population density in the region. Therefore, the growing production of passenger and luxury cars is driving the market's growth in the region.
- The automobile component may fail in different failure modes, causing severe accidents. Therefore, it is essential to identify the failure mode for which the automobile component fails more frequently.
- Failure analysis is also done to establish the cause of an accident. The analysis is employed to see which component in the automobile caused the accident.
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North America Occupies the Largest Market Share
- North America, majorly due to the United States, is one of the earliest adopters of failure analysis techniques, introduced originally to ensure no significant disruptions in the existing business models. The region is home to most of the prominent organizations in the world. For instance, the automotive sector in the country is ruled by General Motors and Ford, which rely heavily on automation.
- Furthermore, the United States is one of the leaders in crude oil production and has several oil rigs spread out across North America. The need for failure analysis techniques is being felt more acutely after the devastating effects of various oil rig accidents, the most notable being the Deepwater Horizon oil spill that occurred in 2010, discharging over 4.5 million barrels of oil into the sea due to a mechanical failure.
- The country has been witnessing critical infrastructure failures for the last few years. In 2021, significant pieces of US infrastructure, the Texas power grid, the East Coast’s main gasoline pipeline, and a freeway bridge over the Mississippi river, failed three times. The crises disrupted businesses and lives, cost billions, and led to the death of 150 Texans.
- To overhaul the US infrastructure, in November 2021, the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) was passed by Congress and signed into law by President Biden, seeking to invest significant investments in critical infrastructures. It emphasized on key sectors to modernize the country’s infrastructure landscape, including improving and rebuilding roads, public transit, bridges, ports, rail, and airports.
- Similarly, according to Statistics Canada 2021, Canada invested CAD 81.6 billion in infrastructure assets in 2020, continuing the investment trend of the previous four years. These investments are crucial to address the country’s infrastructure gap, the estimate of which ranges from USD 111 billion to USD 770 billion.
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