Fault Detection and Classification (FDC) Market by offering type (Software, hardware, services), Application (Manufacturing, Packaging), end use (Automotive, Electronics & Semiconductor, Metal & Machinery) and Region - Global Forecast to 2028

Fault Detection and Classification (FDC) Market by offering type (Software, hardware, services), Application (Manufacturing, Packaging), end use (Automotive, Electronics & Semiconductor, Metal & Machinery) and Region - Global Forecast to 2028

The global fault detection and classification market was valued at USD 4.4 billion in 2022 and is projected to reach USD 7.4 billion by 2028; it is expected to register a CAGR of 8.9% during the forecast period. High demand for application-specific integrated circuits (ASICs) and The increased complexity of systems are driving the growth of the fault detection and classification market. Whereaas,earth of skilled professionals in manufacturing factories are restraining the growth of fault detection and classification market.

The software offering segment is expected to grow at the highest CAGR during the forecast period

The software offering segment is expected to grow at second highest CAGR of 12.9% in the near future. FDC software tends to be more cost-effective than hardware-based alternatives. FDC software typically involves lower initial costs, and ongoing expenses are mainly related to software updates and support. This cost advantage is particularly appealing to organizations aiming to optimize their budget while still benefiting from advanced fault detection capabilities. Also, factors such as flexibility, cost-efficiency, scalability, compatibility, advanced analytics capabilities, remote accessibility, and user-friendly data visualization are boosting the growth of software segment in the coming years.

Automotive end use segment to register growth at the highest CAGR during the forecast period

The automotive segment is expected to grow at a highest CAGR of 9.7% during the forecast period. Safety is paramount in the automotive industry, and vehicles must comply with strict safety regulations globally. FDC systems play a pivotal role in ensuring compliance with these standards by identifying and addressing potential safety-critical faults early in the manufacturing process. Also, the rise of electric vehicles (EVs) and autonomous vehicles has amplified the importance of FDC systems. EVs rely heavily on complex battery systems, and any fault in these systems can have serious safety and performance implications. FDC systems are essential in monitoring battery health, ensuring optimal charging and discharging, and identifying potential faults to prevent critical incidents.

The manufacuting application segment is likely to grow at a higher CAGR during the forecast period

The manufacuting segment is expected to grow at a higher CAGR during the forecast period. In manufacturing processes, faults may originate from design failures, faulty production equipment, metal fatigue, unfavorable working conditions, or any interplay between these factors. Faults like undesired holes, pits, abrasions, and scratches on various pieces that exit the assembly line are unavoidable. Regardless of the source of the defect, defected components spike production costs, degrade product quality, shorten product lifespan, hamper customer satisfaction, and result in an extensive waste of resources. Therefore, fault detection is a core part of any manufacturing quality control and assurance process. Earlier, faults were inspected manually by human inspectors, which is naturally prone to fatigue, inattentiveness, and biases. Later, manual inspection was augmented by rule-based machine vision technologies. Over the past decade, fault detection has become increasingly technology-driven, building on advancements in artificial intelligence, deep learning, and big data. The use of smart cameras and related AI-enabled systems is already helping manufacturers deliver high-quality inspection in shorter cycles, reduce latency and costs, and set new standards that are far beyond the capabilities of even the most experienced human inspectors.

Breakdown of primaries

The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:

By Company Type - Tier 1 – 35%, Tier 2 – 45%, Tier 3 – 20%

By Designation— C-level Executives - 40%, Sales Manager - 30%, Others - 30%

By Region—North America - 20%, Europe - 20%, Asia Pacific - 40%, RoW - 10%

The fault detection and classification market is dominated by a few globally established players such as Keyence Corporation (Japan), Cognex Corporation (US), KLA Corporation (US), Teledyne Technologies (US), OMRON Corporation (Japan). The study includes an in-depth competitive analysis of these key players in the fault detection and classification market, with their company profiles, recent developments, and key market strategies.

Research Coverage:

The report segments the fault detection and classification market and forecasts its size by offering type, device type, deployment, application, end-user, and region. The report also discusses the drivers, restraints, opportunities, and challenges pertaining to the market. It gives a detailed view of the market across four main regions—North America, Europe, Asia Pacific, and RoW. Supply chain analysis has been included in the report, along with the key players and their competitive analysis in the fault detection and classification ecosystem.

Key Benefits to Buy the Report:

Analysis of key drivers (The increased complexity of systems, Strong focus of manufacturers on automating quality control and quality assurance processes, Stringent health and safety measures imposed by governments and standards organizations on global manufacturing firms, High demand for application-specific integrated circuits (ASICs)). Restraint ( Dearth of skilled professionals in manufacturing factories). Opportunity (Increasing adoption of artificial intelligence (AI) technology, Rapid industrialization in emerging economies, along with government initiatives to facilitate adoption of automated tools in manufacturing plants), Challenges (Complexity in implementation of fault detection and classification solution and technologies)

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the fault detection and classification market.

Market Development: Comprehensive information about lucrative markets – the report analyses the fault detection and classification market across varied regions

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the fault detection and classification market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Keyence Corporation (Japan), Cognex Corporation (US), KLA Corporation (US), Teledyne Technologies (US), OMRON Corporation (Japan), Microsoft (US), Tokyo Electron Limited (Japan), Siemens (Germany), Amazon Web Services, Inc. (US), Synopsys, Inc. (US) among others in the fault detection and classification market.