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Fault Detection and Classification (FDC) Market Size and Forecast, by Offerings (Services, Software, Hardware); Application (Manufacturing, Packaging); End-User (Automotive, Electronics & Semiconductor, Metal and Machinery, Food and Packaging, Pharmaceuticals); Fault Type (Dimensional Fault, Surface Defects, Contamination Faults, Process Variability) - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 5925
  • Published Date: Sep 16, 2025
  • Report Format: PDF, PPT

Fault Detection and Classification Market Outlook:

Fault Detection and Classification Market size was over USD 5.79 billion in 2025 and is projected to reach USD 13.83 billion by 2035, growing at around 9.1% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of fault detection and classification is evaluated at USD 6.26 billion.

Fault Detection and Classification Market Size
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The reason behind the growth is impelled by the growing manufacturing industry across the globe. Over the past ten years, there has been steady growth in the manufacturing sector worldwide driven by changing consumer needs, and technology improvements acting as significant change agents. For instance, in 2022, the manufacturing sector worldwide reached around USD 9 trillion.

The growing integration of AI is believed to fuel the market growth. Numerous AI techniques, such as those for data processing, data mining, feature analysis, and classification, have been used in fault detection and classification since they have become extremely useful for automating error detection and prediction processes.

Key Fault Detection and Classification Market Insights Summary:

  • Regional Highlights:

    • Asia Pacific fault detection and classification (fdc) market will hold more than 35% share by 2035, driven by growing urbanization, economic development, and industrialization, leading to higher adoption of fault detection and classification systems.
    • North America market, with the second largest share by 2035, is propelled by increasing demand for food packaging, utilizing fault detection and classification to ensure product quality.

  • Segment Insights:

    • The automotive segment in the fault detection and classification market is anticipated to see significant growth through 2035, driven by the rising sales of automobiles and the need for fault detection systems.
    • The software segment in the fault detection and classification market is forecasted to hold a notable revenue share by 2035, driven by the increasing complexity of systems requiring data-driven fault detection.

  • Key Growth Trends:

    • Rising Industrial Automation
    • Growing Production of Semiconductors

  • Major Challenges:

    • High cost of implementation
    • Complexity associated with the integration can be difficult and may limit market growth

  • Key Players: KLA Corp., Microsoft Corp., OMRON Corp., Siemens AG, DNV Group AS, Lucy Electric, einnoSys Technologies Inc., elunic AG, INFICON Holding AG, Synopsys Inc., Musashi Seimitsu.

Global Fault Detection and Classification Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 5.79 billion
    • 2026 Market Size: USD 6.26 billion
    • Projected Market Size: USD 13.83 billion by 2035
    • Growth Forecasts: 9.1% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: Asia Pacific (35% Share by 2035)
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, Japan, South Korea
    • Emerging Countries: China, India, Japan, South Korea, Taiwan

    • Last updated on : 16 September, 2025

Growth Drivers

  • Rising Industrial Automation – Industries primarily rely on automation, which is the replacement of humans with machines and processes through the use of technologies such as computer software and robotics, which has increased the need for fault-detection devices to ensure that these systems and machinery operate properly.
  • Growing Production of Semiconductors- Current trends indicate that innovation and rivalry in the semiconductor industry will only increase in the future, leading to a higher demand for fault detection and classification which helps semiconductor manufacturers keep an eye on the state of their equipment and investigate possible causes of malfunctions, fault detection and classification.
  • Increasing Adoption of Application-specific Integrated Circuits (ASICs)- ASICs, or application-specific integrated circuits, are in high demand, which have been specially designed and optimized to meet a particular need and are expected to drive the demand for fault detection and classification.

Challenges

  • High cost of implementation- The significant expenses associated with implementing fault detection and classification technologies in the manufacturing or packaging sector are impeding the growth of the market owing to the high cost of unplanned equipment downtime and as the equipment needs more room to be installed and is related with higher maintenance costs.
  • Complexity associated with the integration can be difficult and may limit market growth- One of the most difficult jobs in the process industries is fault detection these systems are susceptible to disruptions and electrical malfunctions owing to their intricate and ever-changing structure, and an increased likelihood of system faults occurring.
  • Shorter Operational Life as Compared to Traditional Batteries
  • A dearth of skilled professionals is expected to impede the demand for fault detection and classification systems

Fault Detection and Classification Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

9.1%

Base Year Market Size (2025)

USD 5.79 billion

Forecast Year Market Size (2035)

USD 13.83 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)
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Fault Detection and Classification Market Segmentation:

End-User Segment Analysis

The automotive segment in the fault detection and classification market is estimated to gain a robust revenue share of 30% in the coming years owing to the growing sale of automobiles. Owing to government measures, favorable job trends, and rising income levels, automobile sales are predicted to grow flat during the forecast timeframe, leading to a rising demand for fault detection and classification.

Fault detection and classification (FDC) systems are crucial in automotive applications as they aid in monitoring various vehicle components such as engines, transmissions, brakes, and sensors to detect any abnormalities or malfunctions, and to identify issues that may affect performance, such as engine misfires or fuel system faults to optimize vehicle performance and fuel efficiency.

Early detection of faults allows for timely maintenance or repairs, which helps to minimize vehicle downtime and reduces the time required for repairs.  These systems can provide real-time monitoring of vehicle components, which allows for immediate action to be taken in case of any abnormalities.

Offerings Segment Analysis

The software segment in the fault detection and classification market is set to garner a notable share shortly. Across sectors, fault detection and classification (FDC) is a data-driven method and technology, which becomes increasingly important as systems get more complex to identify and categorize errors.

Our in-depth analysis of the global market includes the following segments:

          Offerings
  • Services
  • Software
  • Hardware

          Application
  • Manufacturing
  •  Packaging

          End-User
  • Automotive
  •  Electronics & Semiconductor
  •  Metal and Machinery
  •  Food and Packaging
  •  Pharmaceuticals

            Fault Type
  • Dimensional Fault
  •  Surface Defects
  •  Contamination Faults
  •  Process Variability
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Fault Detection and Classification Market Regional Analysis:

APAC Market Insights

Fault detection and classification market in Asia Pacific is predicted to the largest share of 35% by 2035 impelled by the growing urbanization. In 2022, almost one-third of India's inhabitants called its cities home owing to the population's fast growth. This is expected to lead to development in the region as economic development, urbanization, and industrialization are anticipated to coexist, leading to a higher adoption rate of fault detection and classification. For instance, in India, more than 43% of the population will live in urban areas by the middle of 2035.

North American Market Insights

The North American fault detection and classification market is estimated to be the second largest, during the forecast period led by increasing demand for food packaging. This has led to market growth in the region since packaging industries employ fault detection and classification (FDC), a technological and data-driven procedure, to find packaging flaws and guarantee product quality. For instance, food packaging demand in the US is expected to reach over USD 58 billion in 2027, growing at a rate of around 2% annually.

Fault Detection and Classification Market Share
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Fault Detection and Classification Market Players:

    • Cognex Corp.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Clockworks Analytics
    • Keyence Corp.
    • KLA Corp.
    • Microsoft Corp.
    • OMRON Corp.
    • Siemens AG
    • DNV Group AS
    • Lucy Electric
    • einnoSys Technologies Inc.
    • elunic AG
    • INFICON Holding AG

Recent Developments

  • Lucy Electric combined Advanced grid monitoring capabilities and AI for subterranean cable asset management and fault detection by utilizing a "digital twin" and sensors at the feeder and substation levels to identify irregularities in grid operation. Furthermore, combining this innovative technology with the GridKey monitoring system enhances fault management, resulting in considerable cost savings and fewer customer interruptions, and is regarded as a very successful method of identifying cable faults since it can locate little transients that are indicative of the beginning of a cable fault.
  • A novel machine-learning model for forecasting the maintenance requirements of large-scale solar PV installations has been created by scientists from Malaysia and Thailand, which will aid in detecting irregularities in the expected electrical current of string modules, the tool seeks to circumvent "fault detection and classification," which is frequently present in standard operating systems and notifies operators when repair is necessary.
  • Report ID: 5925
  • Published Date: Sep 16, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of fault detection and classification is evaluated at USD 6.26 billion.

The global fault detection and classification market size was worth over USD 5.79 billion in 2025 and is poised to grow at a CAGR of more than 9.1%, reaching USD 13.83 billion revenue by 2035.

Asia Pacific fault detection and classification (fdc) market will hold more than 35% share by 2035, driven by growing urbanization, economic development, and industrialization, leading to higher adoption of fault detection and classification systems.

Key players in the market include KLA Corp., Microsoft Corp., OMRON Corp., Siemens AG, DNV Group AS, Lucy Electric, einnoSys Technologies Inc., elunic AG, INFICON Holding AG, Synopsys Inc., Musashi Seimitsu.

Fault Detection and Classification Market Report Scope

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