Data Acquisition System Market Size Global Forecast to 2026

Posted by Steve Stark on November 24th, 2021

The global data acquisition system market is estimated to grow from USD 1.7 billion in 2021 to USD 2.3 billion by 2026, at a CAGR of 5.5%.

Rising emphasis on data monitoring in end user sectors, Increasing implementation of Industry 4.0 as well as rising demand for high-speed connectivity technologies like implementation of 5G and so on are driving the growth of DAQ system market. Moreover, growing adoption of DAQ solutions in automotive & transportation, aerospace & defense, power & energy and other verticals will drive the demand for this market in the near future..

Driver: Rising emphasis on data monitoring in end user sectors

In the aerospace & defense, government, energy, and automotive sectors, data monitoring improves the quality of operations and helps in early fault detection at the production stage. In addition, data monitoring helps increase the operational efficiency of equipment with minimum human intervention. In the energy sector, data monitoring helps in evaluating the performance of assets such as solar PV, wind turbines, and other power generation equipment. For instance, monitoring wind turbine data has become critical to wind power generation operations in the US in recent years. According to British Petroleum, the total wind generation in the US was 340.9 TWH in 2020, which was the highest to date. Also, the US was ranked second in terms of total wind consumption after China in 2020. With increasing wind power capacity, wind turbines need to be constantly monitored for parameters such as vibrations, wind speed, and temperature for efficient and reliable operations. In the aerospace industry, data monitoring helps in analyzing the flight aerodynamics characteristics and validating the design and safety parameters of the engine and other aircraft components.

Restraint: CAPEX cost and complexity of DAQ systems

Consumers of DAQ systems are highly price-conscious and demand low-cost DAQ systems that have a higher quality. However, a DAQ system’s cost depends on key parameters such as sensors, channel counts, and the necessity to design a DAQ system to survive harsh working environments. The more the channel count and speed, the higher will be the cost. DAQ systems are becoming increasingly complex due to technological advancements in the design and development of these equipment. This creates the demand for higher testing capabilities, and manufacturers are continuously required to upgrade their existing technology to cater to the demands of specific applications. Manufacturers of DAQ systems also need to adhere to various technical standards, and this increases the cost of a DAQ system.

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Opportunity: Surging demand for high-speed connectivity technologies like 5G

Industries such as aerospace, wireless communication, automotive, and manufacturing are increasingly adopting 5G technology. In the automotive sector, for instance, the current 4G technology is not fast enough to support the development and adoption of autonomous cars. The devices used in autonomous vehicle development, such as the image recognition system, voice detection system, and other digital devices, require 5G technology to boost high-speed connectivity. Similarly, in the aerospace sector, 5G technology is used to increase the reliability of the avionics equipment by reducing latency and increasing the connectivity speed. Further, various countries have already been investing in 5G technology to enhance the digital infrastructure and stay competitive in the digital economy. South Korea, China, the US, and Germany are some major countries adopting and deploying 5G infrastructure of wireless technology. These countries are expected to provide opportunities for DAQ systems in different end user industries, including wireless communication & infrastructure. This is expected to create new opportunities for the DAQ system market during the forecast period.

Challenge: Highly competitive market

The global DAQ system market is highly competitive, with several manufacturers trying to develop new systems to meet the growing demand for applications through innovation, quality, and service. This is further driven by the increased competition among OEMs to adopt new technological advancements in the automotive, aerospace & defense, and energy sectors. The engineers and designers of these technological solutions often need to test and upgrade their equipment to remain competitive in the market. In recent years, the adoption of 5G and IoT in manufacturing has been the key focus of development for major OEMs in the aerospace and automotive sectors in North America and Europe. For instance, top aerospace manufacturers such as Airbus and Boeing use IoT technology to perform advanced analytics, which enhances the manufacturing performance through live tracking and advanced simulations to determine the lifecycle of the equipment.