Failure Analysis Market Report 2026

The failure analysis market size has grown strongly in recent years. It will grow from $5.33 billion in 2025 to $5.83 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to increasing complexity of industrial components, growth in high-precision manufacturing, rising safety and compliance requirements, expansion of semiconductor and electronics production, increased focus on quality assurance.

The failure analysis market size is expected to see strong growth in the next few years. It will grow to $8.06 billion in 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to increasing adoption of ai-enabled failure analysis tools, rising demand for predictive maintenance solutions, expansion of electric vehicle and electronics testing, growing investment in reliability-focused design, increasing use of digital twins in failure investigations. Major trends in the forecast period include increasing adoption of advanced microscopy techniques, rising use of data-driven failure diagnostics, growing integration of root cause analysis software, expansion of predictive failure analysis methods, enhanced focus on reliability engineering.

The rising adoption of automation is expected to drive the growth of the failure analysis market in the coming years. Automation involves using technology and machinery to perform tasks or processes with minimal human intervention. It streamlines operations, reduces manual labor, and minimizes human error, thereby improving efficiency and productivity across various industries. Failure analysis plays a critical role in identifying the root causes of system failures, malfunctions, or breakdowns in automated processes. For example, in April 2024, the International Federation of Robotics, a Germany-based international organization, reported that manufacturing companies in the United States significantly increased their automation efforts, with total industrial robot installations rising 12% to 44,303 units in 2023. Therefore, the growing adoption of automation is contributing to the expansion of the failure analysis market.

Key players in the failure analysis market are integrating AI and ML technologies into 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 employs artificial intelligence to identify and classify errors in test case failures, analyzing test logs to provide a comprehensive overview of underlying failure causes, facilitating swift issue identification and resolution for developers. For example, in January 2023, LambdaTest, a US-based provider of an AI-powered unified enterprise test execution cloud platform, introduced an AI-powered test failure analysis feature within its smart test orchestration platform, HyperExecute. This innovative feature enables digital businesses to streamline troubleshooting and remediation processes for test case failures, saving time and boosting developer feedback velocity. It simplifies test execution, categorizes errors, and offers structured approaches to efficiently address test failures. HyperExecute incorporates intelligent functionalities such as auto-grouping, auto-retry, and fail-fast mechanisms to enhance testing productivity and accelerate time-to-market for digital businesses.

In July 2023, Spirit Electronics, a US-based electronics company, acquired Insight Analytical Labs, a US-based provider of electronics analysis and failure analysis services catering to the integrated circuit and semiconductor industry, for an undisclosed sum. This acquisition enables Spirit Electronics to expand its service portfolio with digital process automation (DPA) capabilities crucial for detecting production defects in high-reliability electronic components and bolstering aerospace and defense programs.

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.

North America was the largest region in the failure analysis market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the failure analysis market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The failure analysis market consists of revenues earned by entities by providing services such as root cause analysis, chemical analysis, microscopic examination, non-destructive testing, and fracture analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. The membership management software market also includes sales of analytical instruments, sample preparation equipment, and mechanical testing equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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