Failure Analysis Industry Anticipated to Expand at 8.9% CAGR During the Forecast Period

November 13, 2025 by The Business Research Company

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#What Is The Projected Market Size Of The Failure Analysis Market By 2029?

The failure analysis market has shown significant growth over recent years. It is anticipated to increase from $4.86 billion in 2024 to $5.33 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.7%. This expansion in previous periods can be linked to factors such as the rising intricacy of products, rigorous regulatory mandates, increased focus on quality control, and a growing necessity for reliability engineering.

The failure analysis market is anticipated to experience robust expansion over the coming years. By 2029, its valuation is projected to reach $7.5 billion, demonstrating an 8.9% compound annual growth rate. This projected increase is driven by factors such as the proliferation of new industries, the worldwide integration of supply chains, and an escalating need for predictive maintenance services. Significant developments expected during this period involve failure analysis for medical devices, tailored industry solutions, enhanced cooperation and information exchange, and the application of failure analysis in additive manufacturing.

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Which Industry Drivers Are Expected To Accelerate The Failure Analysis Market From 2025 To 2029?

The projected expansion of the failure analysis market is anticipated to be driven by the rising uptake of automation. This involves employing technology and machines to execute tasks or processes with limited human involvement. Automation enhances efficiency and productivity across diverse industries by streamlining operations, decreasing the need for manual labor, and lowering human errors. Within automated processes, failure analysis plays a crucial role in pinpointing the root causes of system failures, malfunctions, or breakdowns. As an illustration, a survey of 321 manufacturers carried out by Rockwell Automation, Inc., an industrial automation firm based in the US, in May 2022 revealed a significant 50% year-over-year increase in the embrace of smart factory technologies. Furthermore, 74% of the manufacturers surveyed are currently using these technologies or intend to incorporate them into their manufacturing activities. Additionally, 83% of professionals in manufacturing plan to evolve their modernization efforts into smart factory setups. Consequently, the expanding implementation of automation is serving as a catalyst for the growth of the failure analysis market.

What Are The Emerging Segments Gaining Attention In The Failure Analysis Market?

The failure analysis market covered in this report is segmented –

1) By Equipment: Scanning Electron Microscope (SEM), Focused Ion Beam (FIB) System, Transmission Electron Microscope (TEM), Dual Beam System

2) By Technology: Secondary ION Mass Spectrometry (SIMS), Energy Dispersive X-ray Spectroscopy (EDX), Chemical Mechanical Planarization (CMP), Other Technologies

3) By End-User Vertical: Automotive, Oil And Gas, Defense, Construction, Manufacturing, Other End-User Verticals

Subsegments:

1) By Scanning Electron Microscope (SEM): Conventional SEM, Field Emission SEM (FESEM), Environmental SEM (ESEM), Desktop SEM

2) By Focused Ion Beam (FIB) System: FIB-SEM Systems, FIB For Circuit Editing, FIB For Milling, FIB For Imaging And Analysis

3) By Transmission Electron Microscope (TEM): Conventional TEM, Scanning TEM (STEM), High-Resolution TEM (HR-TEM), Analytical TEM (ATEM)

4) By Dual Beam System: Dual Beam FIB-SEM Systems, Dual Beam For Milling and Imaging, Dual Beam For Micro-machining And Analysis

What Trends Are Redefining The Failure Analysis Market Dynamics?

Leading companies in the failure analysis market are integrating AI and ML technologies into their analysis processes and solutions, such as AI-powered test failure analysis, to enhance efficiency, accuracy, and speed in identifying and diagnosing failures. AI-powered test failure Analysis is a utility that utilizes artificial intelligence to identify and categorize errors within test case failures. It processes test logs and provides a comprehensive overview of the underlying reasons for failures, enabling developers to quickly pinpoint and resolve issues. For example, in January 2023, LambdaTest, a US-based operator of an AI-powered unified enterprise test execution cloud platform, launched an AI-powered test failure analysis feature within its smart test orchestration platform, HyperExecute. This innovative capability empowers digital businesses to streamline troubleshooting and remediation procedures for test case failures, thereby saving time and improving developer feedback velocity. It is engineered to simplify test execution processes, categorize errors, and offer structured approaches for efficiently resolving test failures. HyperExecute also incorporates intelligent features such as auto-grouping, auto-retry, and fail-fast mechanisms to boost testing productivity and accelerate time-to-market for digital businesses.

Who Are The Top Performing Companies In The Failure Analysis Market In Recent Years?

Major companies operating in the failure analysis market are Hitachi Ltd., Thermo Fisher Scientific Inc., Applied Materials Inc., KLA Corporation, Eurofins Scientific SE, Agilent Technologies, Ametek Inc., Keysight Technologies, Advantest Corporation, Shimadzu Corporation, Bruker Corporation, Carl Zeiss AG, Leica Microsystems GmbH, Renishaw plc, Veeco Instruments, A&D Company Ltd., Rigaku Corporation, Park Systems Corp., Oxford Instruments, Tescan Orsay Holding, JEOL Ltd.

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What Regional Growth Trends Are Shaping The Failure Analysis Market Outlook?

North America was the largest region in the failure analysis market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the failure analysis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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