Digital Multimeter Market Trends

Growth Drivers

• Rising integration of IoT- The Internet of Things (IoT) is connecting a wide range of items, including test instruments such as digital multimeters (DMM). The internet of things (IoT) has progressed from a simple concept to a tangible reality. This can be linked to the widespread use of Internet Protocol (IP), the emergence of ubiquitous computing, and the continual growth of data analytics, among other development drivers. According to a report, it is expected that IoT devices are expected to grow by 2x and cross 25.44 billion by 2030.
  
  Furthermore, IoT hardware components have become much more affordable over time, owing to their increasing accessibility for both consumers and companies, and other key components have made it possible to create an increasing number of Internet of Things devices.
• Increasing demand for automation - Digital multimeters are one of the essential measurement tools that are becoming necessary as automation spreads. Engineers and technicians frequently utilize digital multimeters due to their versatility and ease of use, as they can measure a wide range of characteristics, including voltage, current, resistance, and capacitance, which can be extensively utilized in automation systems to keep an eye on and manage electrical components and systems.
  
  Moreover, according to a report, the global increase in industrial process automation was USD 58 million in 2022. Digital multimeters, for instance, are used to test the voltage and current in industrial machinery and equipment to guarantee proper and effective operation. Hence, digital multimeters are going to gain more demand as the need for automation increases.
• Expansion in investments in the 4.0 industry - From 2011 to 2021, the amount of money allocated annually to startups involved in Industry 4.0 climbed by over 318%. A total of about USD 3 billion in funding was allocated to emerging businesses in 2021 for the development of Industry 4.0-related technology. Hence, with this, the adoption of digital multimeters is estimated to observe tremendous growth.

Challenges

• Poor power factor - The power factor of a digital multimeter represents a system's voltage-ampere loss caused by reactance. Poor power factor results in utility penalty fines, which can be addressed by installing power factor correction systems. Short voltage changes, commonly caused by lightning strikes and load switching, can cause equipment to shut down.
• Digital values of the digital multimeters can occasionally vary quickly before stabilizing, which makes them more challenging to read.
• Cost sensitivity of the device can impact the market growth