Data Acquisition (DAQ) System Market

Data Acquisition (DAQ) System Market Overview (2022 to 2032)

The global data acquisition (DAQ) system market was valued at US$ 1.7 Billion in 2021 and is projected to be valued at US$ 1.8 Billion in 2022. During the 2022 to 2032 period of assessment, demand is expected to rise at a 5.3% value CAGR, likely to reach US$ 3.0 Billion by the end of the said forecast period.

Overall, the data acquisition system landscape is poised to yield an absolute dollar opportunity worth US$ 1.2 Billion by 2032.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 1.7 Billion
Expected Market Value (2022)	US$ 1.8 Billion
Projected Forecast Value (2032)	US$ 3.0 Billion
Global Growth Rate (2022 to 2032)	5.3% CAGR
Growth Rate of the U.S (2022 to 2032)	5.1% CAGR
Expected Market Value of China (2032)	US$ 215.8 Million
Dollar Opportunity in Japan (2022 to 2032)	US$ 52.0 Million
Key Data Acquisition (DAQ) System Service Providers	Advantech Co. Ltd.; Spectris PLC (HBM and Bruel & Kjaer and Omega); National Instruments Corporation; Schneider Electric SE; ABB Ltd; Honeywell International; Siemens AG; Rockwell Automation Inc.; Keysight Technologies; General Electric Ltd.; Omron Corporation; Yokogawa Electric Co.; Tektronix; AMETEK (VTI Instruments); Bustec; Emerson Electric Co.; Curtiss-Wright Corporation; DAQ Systems Co; Limited; Imc Dataworks; LLC; ADLINK Technology; Inc.; Beijing GEMOTECH Intelligent Technology; DATAQ Instruments

Sales of Data Acquisition (DAQ) System will continue to flourish, with a documented CAGR of 6.0% from 2015 to 2021.

Moreover, hardware data acquisition (DAQ) system and aerospace & defense will continue to remain the primary beneficiaries of the data acquisition systems market, likely to register a CAGR worth 5.7% and 5.5% respectively, from 2022 to 2032. The U.S is projected to represent the highest growth across the global market.

Data Acquisition (DAQ) System Market Revenue Key Trends

The data acquisition system market is expected to grow on account of growing human machine interface applications, which is expected to hold a significant share during the forecast period.

HMIs are used in various locations, such as process control, factory floor, machines, portable handheld devices, etc. Applications of this technology include various appliances, automotive, machine health monitoring, and industrial automation, among others. An HMI solution improves the operator's productivity and provides insights into system control and maintenance. For instance, the HMI function of setting off alarms provides visual indicators of a machine's issue and severity.

Technologies, such as Open Platform Communications Unified Architecture, integrated into PC-based machine controls, have allowed the safe transmission of encrypted data from machine to cloud and enterprise-level systems.

Owing to the broadening of its functionality, through the integration with PLC applications or PC-based multi-user systems, HMI technology has also increased market adoption. In addition, the increasing adoption of Industrial IoT, coupled with these benefits of HMI, is expected to drive market growth.

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.

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.

Key Challenges Prevalent in the Global Data Acquisition (DAQ) System Market

High Degree of Market Competition may pose Challenges for Small-Scale Players

The global data acquisition 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.

CAPEX cost and complexity of Data Acquisition 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.

Comparative View of Adjacent Data Acquisition (DAQ) System Market

Data Acquisition (DAQ) System Market :

Attributes	Data Acquisition (DAQ) System Market
CAGR(2022 to 2032)	5.3%
Market Value (2032)	US$ 3.0 Billion
Growth Factor	One of the primary factors driving the market’s growth is the rising emphasis on data monitoring in end user sectors.
Opportunity	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.
Key Trends	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.

Data Classification Market :

Attributes	Data Classification Market
CAGR (2022 to 2032)	7.4%
Market Value (2032)	US$ 2.7 Billion
Growth Factor	Major growth drivers for the market include regulatory compliance, growth in uncontrolled data volumes, and increased security risks.
Opportunity	The major market players are significantly investing in Research and Development (R&D) activities in areas of strategic focus, such as advertising, cloud, machine learning, and search, as well as in innovative products and services.
Key Trends	The high demand for the standalone solution segment to grow at a higher CAGR during the forecast period, which in turn is expected to propel the market growth.

Enterprise Data Management Market :

Attributes	Enterprise Data Management Market
CAGR (2022 to 2032)	9.5%
Market Value (2032)	US$ 220.5 Billion
Growth Factor	Key growth factors for the market include the need to effectively manage the hierarchical master data generated across departments, adoption of Internet of Things (IoT) devices, and digitalization.
Opportunity	The growing need to ensure regulatory compliance that is driven by the new regulations such as General Data Protection Regulation (GDPR), Act on the Protection of Personal Information (APPI) to drive the growth of enterprise data management market.
Key Trends	The Cloud deployment mode will grow at a higher CAGR during the forecast period, which in turn is expected to fuel the market growth.

Country-wise Analysis

What is the Growth Outlook for Data Acquisition (DAQ) System in the U.S?

United States to Hold the Largest Market Share

The demand for Data Acquisition (DAQ) System services in the U.S is likely to expand at a 5.1% value CAGR until 2032, forecast to yield an opportunity worth US$ 1.1 Billion.

The United States is on the verge of the fourth industrial revolution, where data is being extensively used for production and integration with a wide range of manufacturing systems across the supply chain. The country has been one of the leading automotive markets in the world and is home to over 13 major automobile manufacturers.

The automotive manufacturing industry has been one of the largest revenue generators for the country in the manufacturing sector.

Industrial automation is the primary driving factor, which is expected to drive the demand for the DAQ systems, as the increasing adoption of controlling processes without human interference is heavily reliant on data to provide instructions, and hence any minor misdirection may lead to drastic losses to the industry.

The US is a key market for factory automation and advanced devices and equipment installation within the North American region. The demand for advanced manufacturing technologies may further enhance the demand for DAQ products in the market.

How do Growth Prospects Appear in the Chinese Market?

Rising demand for automobile production in the country

Rapid advancements in technologies, increasing manufacturing units, stringent regulatory policies pertaining to testing and measurement of products, strong government support towards manufacturing and adoption of new technologies such as AI and IoT, and significant presence of key industry players in the country are a few major factors driving the DAQ system market growth in China.

China is expected to reach US$ 215.8 Million by 2032, growing at a 4.6% CAGR.

Moreover, China is the largest vehicle manufacturer in Asia Pacific region. Increasing penetration of different automotive OEMs/plants in the country, attributed to the rising demand for automobile production is driving the Data Acquisition System market in the country.

Is Japan likely to emerge as an Opportunistic Data Acquisition (DAQ) System Industry?

Rising adoption of Cloud Services

Factors such as huge technological advances, high market penetration of automation, and the early adoption of advanced technologies influence the DAQ system market growth. Besides, the spurring rise in the manufacturing sector and the presence of key industry players in Japan are expected to boost the Data Acquisition System market over the analysis period.

In addition, stringent regulatory policies for product testing and measurement, alongside the strong government support for the manufacturing sector and promoting new technologies such as AI and IoT, create the vast market demand. Japan is expected to grow at a CAGR of 3.6% and is expected to represent a market share of US$ 174.0 Million by 2032.

Further, high manufacturing infrastructure investments and increased cloud services adoption boost the growth of the Data Acquisition System market in the country. The high adoption of automation and control systems and the growing power sectors in this country fuel the market growth.

Country-wise Forecast CAGRs in the Data Acquisition (DAQ) System Market

Country	CAGR
US	5.1%
China	4.6%
Japan	3.6%
UK	4.0%
South Korea	3.0%

Category-wise Insights

Why is the Market Demand Rising Rapidly?

Hardware Data Acquisition (DAQ) System to be Top Offering in the Coming Years

By Offering, the Hardware Data Acquisition (DAQ) System is likely to remain the top category, growing at a value CAGR of 5.7% from 2022 to 2032.

Data Acquisition hardware is widely used due to its modular design and the possibility of arranging various combinations to satisfy a wide range of customized experimental setups. The adoption of Ethernet is gaining momentum owing to factors such as interoperability and ease of integration, thereby fueling the demand for DAQ hardware.

The demand for DAQ hardware is rising as they are widely deployed in manufacturing applications—in both process and discrete, laboratory/R&D, automotive, and aerospace & defense markets.

The external chassis and module increase productivity and performance in DAQ and control applications in industries. The continued migration to USB- and ethernet-based front-end systems that offer PC computing power and functionality is resulting in faster adoption rates, ultimately driving the market for external chassis and modules.

Which Vertical is expected to Leverage Data Acquisition (DAQ) System the Most?

Aerospace & Defense to leverage the Market Growth

The Aerospace & Defense vertical of the Data Acquisition (DAQ) System Market is expected to grow at a value CAGR of 5.5% from 2022 to 2032.

The growth of the Data Acquisition system market for the aerospace & defense vertical is driven by the need for testing aircraft and their components with real-time monitoring features against various parameters and extreme environmental challenges.

The Data Acquisition systems play a vital role during various testing procedures in ensuring that the aerospace products and components meet the desired functional specifications.

These tests are carried out during the design, development, and manufacturing stages of aerospace components and play an important role in confirming if aerospace components, subsystems, and complete flight systems meet the specified requirements. These factors have contributed to the increased demand for DAQ systems in the aerospace & defense vertical.

Competitive Landscape

The global market for data acquisition systems is characterized by the presence of multiple vendors, aiming to offer extensive products to consumers. Additionally, key makers are focusing on developing the devices supported by the implementation of stringent government regulations, and are offering solutions tailor-made to suit their business objectives. In addition, the vendors are likely to leverage upgradation and product differentiation to gain an edge over other competitors in the market.

• In July 2021, Dewesoft signed a sales contract with an Austrian company ELIN Motoren GmbH. The company had fully integrated a mandatory vibration measurement of each produced machine, motor or generator – as part of the final inspection procedure. When searching for a suitable DAQ system, the requirements were to keep it portable, measure vibration and electrical power with just one system (raw data), and that the delivery of the data during the test should flow flawlessly to the KS Tornado testbed. Dewesoft provided the right solution – DewesoftX data acquisition software, and fulfilled its requirement.
• In July 2021, Spectris acquired Concurrent Real-Time, a provider of high-performance real-time computer systems, solutions, and software for commercial and government markets. Concurrent Real-Time’s RedHawk Linux solutions deliver hard real-time performance in support of the world’s most sophisticated hardware-in-the-loop and man-in-the-loop simulation, high-speed data acquisition, process control, and low-latency transaction processing applications. This will expand Spectris’s abilities to provide sales and support from offices throughout North America, Europe, and Asia.
• In February 2021, Teledyne SP Devices, a business unit of Teledyne Technologies, announced the release of ADQ32, a fourth-generation modular data acquisition board optimized for high-throughput applications.

Key Segments Covered in the Data Acquisition (DAQ) System Industry Report

• By Offering :

  • Hardware
    • External Chassis and Modules
    • Plug In I/O Analog Boards
  • Software
    • Bundled
    • Third Party

• By Speed :

  • High-Speed (>100 KS/S)
  • Low-Speed (>100 KS/S)

• By Application :

  • R&D
  • Field Applications
  • Manufacturing

• By Vertical :

  • Automotive & Transportation
  • Aerospace & Defense
  • Power & Energy
  • Wireless Communication & Infrastructure
  • Environmental Monitoring
  • Healthcare
  • Food & Beverage
  • Other Verticals

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa