The test and measurement (T&M) industry is undergoing a dynamic transformation as it adapts to emerging technologies and shifting market demands. With significant growth in sectors like aerospace, defense, semiconductors, and electric vehicles (EVs), the industry is poised to play a crucial role in shaping the future of innovation. In India, the T&M sector has demonstrated resilience amidst global challenges, driven by government initiatives, a robust focus on technology advancements, and evolving trends like artificial intelligence (AI) and Industry 4.0. As we step into 2025, Baskar Ceri, Managing Director India & Global ADG Business Manager of Emerson’s Test and Measurement business, sheds light on the forthcoming trends that are set to redefine the industry, highlighting opportunities, challenges, and technological breakthroughs across various domains.
Q1. – How have we seen trends evolve throughout 2024, and how are they expected to shift moving into 2025?
Baskar: Overall, the global test and measurement industry faced challenges over the past year, especially with a downturn in the semiconductor market. However, India’s test and measurement landscape remained resilient, bolstered by government initiatives in the semiconductor sector and overall economic growth. In 2024, the Indian test and measurement industry saw growth of around 3 to 4 percent.
As a leading T&M player in India, NI, which was acquired by Emerson in 2023 and is now part of its Test and Measurement business, experienced healthy growth post-COVID, outperforming the overall market growth in India. This momentum has been further supported by Emerson’s added stability and resources, which contributed to our strong performance in 2024.
Q2. – From an industry perspective, were there any specific trends or technologies that stood out as key drivers of market growth? Or were there particular factors contributing to these growth dynamics?
Baskar: Overall, Aerospace and Defence sectors have consistently driven growth across the T&M industry, including in India, where significant investments continue in space, notably through ISRO and private space. This sector remains a key growth area and has shown steady progress in 2024, expected to continue into 2025.
In the semiconductor market, despite a global downturn, India has seen growth with a shift – Indian companies are increasing their investments, while multinationals have scaled back, aligning with global trends. Additionally, the rollout of 4G and 5G infrastructure in India, including BSNL’s recent major ground equipment orders, has spurred investment in communications, semiconductor, and electronic testing sectors.
In the automotive sector, India saw notable growth, particularly in electric vehicles (EVs), which are gaining significant traction. However, traditional automotive players are more cautious amid recent slowdowns, while global EV and autonomous vehicle advancements remain strong.
In education and research, the post-COVID recovery has begun, with renewed government funding and new projects for 6G research and initiatives under the Bharat 6G Alliance, which will see increasing activity through 2025 and 2026. India has performed well across most sectors, with growth ranging from low to high single digits.
Q3. – Any trends that you see in the T&M Industry shaping 2025?
Baskar: These days, almost everyone is talking about AI, whether they fully understand it or not. I recently read an article that compared AI to the early days of literacy in the late 19th and early 20th centuries. Back then, only a few people could read, and many believed literacy shouldn’t be widespread. AI is in a similar stage today, with a few key players dominating, and some think that deep AI knowledge should remain limited. However, that’s likely to change, and this technology is already impacting every industry, including T&M, which won’t be immune.
For the NI brand in T&M, we see AI impacting both workflows and the products our customers are building, from faster testing and design processes to incorporating AI within the products themselves. Engineers will soon deal with two main aspects: using AI to speed up workflows – whether for testing, designing, or overall product development – and integrating AI into their products. This evolution poses unique challenges for test engineers, particularly as AI advancements demand quicker testing solutions and new methodologies.
In automotive, for example, software is taking a central role, with nearly 50-60% of a car’s cost going toward software rather than mechanical or electrical components. This shift requires frequent updates and ongoing testing, especially with AI integration, making it a top challenge for T&M engineers.
Emerson’s Test & Measurement business is focused on helping engineers streamline their workflows by enhancing our AI for test offerings, as introduced at NI Connect. Our commitment is to make test and design processes easier, transparent, secure, and effective for both test and design engineers.
Beyond AI, we see significant growth in areas like unmanned air mobility (UAM), especially with air taxis and other advanced aerospace projects. In India, there’s growing interest in standards for UAM, while defense applications like drones continue to develop. Space commercialization is another major trend, with recent approvals for India’s reusable launch vehicles, GPS systems, and even a future Indian space station. These projects, which span from 2025 into the next decade, represent huge growth opportunities for Emerson’s T&M business as we support testing across launch vehicles, satellites, and other payloads.
The electric vehicle (EV) industry is also set to grow, with India targeting 30% EV adoption by 2030. This policy is spurring developments in battery farms and giga-factories, which will resemble Tesla’s U.S. setup and are in planning stages here as well. The role of Emerson Test & Measurement in testing for these initiatives will be crucial as we support the industry’s transformation.
The semiconductor sector is another area of excitement, especially with government support for new fabs and the associated infrastructure. Emerson’s Test & Measurement group is currently in talks with multiple companies as they plan these partnerships, and we’re ready to support them as these fabs are developed. These trends, which began in 2024, are expected to continue into 2025, driving growth across multiple sectors.
Q4. – Do you see significant trends in aerospace & defence sectors, are there any specific developments you’d like to highlight?
Baskar: The aerospace and defence sector is a vital part of the worldwide economy, fostering creativity, generating employment and industries, and exerting a significant influence on both international and national security. The aerospace manufacturing and defence industry comprises the testing and manufacturing of aircraft, space vehicles, engines and parts, as well as maintenance, repair, and overhaul (MRO) services.
Well, there are several challenges, and particularly global ones that are shared among different countries. The current global challenges we face include increasing system complexity, longer platform life cycles, budget constraints, and shorter system development timelines. Additionally, the expanding reliance on software introduces new challenges such as cybersecurity and the shortage of skilled engineers. To address these challenges, we need to prioritize modernizing infrastructure, accelerating government reforms, promoting in-house production and technologies in India, and encouraging private companies to play a more significant role. We need to think bigger and aim to create technology and defense giants in India, like Lockheed Martin. Shifting focus back to engineering and investing in aerospace engineering education and training programs will help develop this ecosystem.
A few years ago, the U.S. Department of Defense released a list named “Advanced Capability Enablers” (ACE) which identified technologies that are expected to significantly impact defense and aerospace systems. These included autonomy, robotics, unmanned systems, sensor fusion, artificial intelligence, electric aircraft, hypersonics, multi-domain operations, and cybersecurity with data sharing. Additionally, other technologies such as large satellite constellations, additive manufacturing (3D printing), quantum computing, and augmented/virtual reality were highlighted. These advancements are not only important for aerospace but will also have a broader impact across various industries and even for India’s indigenous defense projects like LCA and AMCA.
India aims to become a developed country, with a focus on the aerospace and defense industry. The government has implemented programs such as “Make in India” and “Digital India” to encourage indigenous manufacturing and increased foreign investment in the sector. Collaboration between foreign and Indian companies is on the rise, with promising developments in space initiatives and startups. The government plays a crucial role in fostering this growth through policies and support. The vision should be to create the next SpaceX, Boeing, or Lockheed Martin in India within the next 20 to 30 years.
Q5. – Do you see significant trends in energy or industrial sectors, particularly around smart factories and industrial machinery? And within the semiconductor space, where wireless connectivity and chipsets are frequently discussed, are there any specific developments you’d like to highlight?
Baskar: Industry 4.0 and smart factories have been around for some time, but the exciting development now is how AI will accelerate this transformation. There’s even a shift toward discussions on Industry 5.0. The role of Emerson’s T&M business here is focused on testing and condition monitoring, areas where our components contribute significantly. Emerson’s strong presence in automation positions Emerson’s Test & Measurement group well for Industry 4.0 and the upcoming Industry 5.0, allowing us to leverage Emerson’s expertise and explore where tools of the NI brand can add unique value.
In energy, Emerson T&M contributes in testing and component areas, but for Emerson overall, energy is a key focus, with a presence in most of the energy companies in India. Emerson supports various energy types, including coal, nuclear, solar, wind, and hydro. With AI’s significant energy and water needs, there’s a growing interest in India’s potential to host data centers for AI servers, a discussion in which Emerson is actively involved and has ambitious growth plans. For Emerson’s T&M group, the focus will be more on supporting these initiatives in specific areas rather than taking a front-line role.
Q6. – Let’s discuss the wearable technology industry. Given the high demand, do you see that trend slowing down in 2025? Wearable devices keep getting smaller and more advanced, with new versions frequently launching. How do you view the future of this industry?
Baskar: In life sciences, our focus is more on core medical equipment than on wearables. We play a significant role in designing and testing medical systems for major clients like Philips and GE, including x-ray machines, ventilators, and other essential healthcare devices. We’re also involved in supporting innovation centers, such as HDIC at IIT Chennai, where we’ve helped advance programs for manufacturing low-cost healthcare equipment.
While wearable technology continues to evolve with more AI and predictive capabilities, we primarily view this as part of the semiconductor space. Our role is less about the wearables themselves and more about testing the chips within them during manufacturing. In healthcare, our largest impact is in medical device design and manufacturing, starting from syringes to complex CT scan machines and beyond.
Q7. – In addition to this, what about surgical technologies?
Baskar: In the surgical sector, we contribute significantly to the manufacturing processes. For instance, we assist a syringe manufacturer with their production and testing. Generally, our involvement is strongest in areas where electronics play a crucial role.
This includes designing, testing, and validating devices like MRIs, ECGs, ultrasounds, X-ray machines, and ventilators. Emerson’s T&M technology is extensively utilized in both the design, validation and manufacturing testing of these products. Major customers in this space include GE Vernova and Philips.
Q8. – Moving on to transportation, we wanted to touch on ADAS. Are there any trends you’re seeing in this space? One challenge we’ve noted is that implementing ADAS in India can be difficult due to the current road conditions. From an ADAS perspective, are there any emerging trends to highlight that you anticipate in the coming years?
Baskar: Regarding ADAS, there’s considerable scepticism about it in India. The joke goes that a vehicle equipped with ADAS wouldn’t move an inch in Bangalore traffic! However, a significant trend we’re observing is that automotive companies in India are not just developing ADAS for local use, but for global markets.
We are collaborating extensively with automotive OEMs and Tier 1 companies, supporting ADAS development that goes beyond India. Recently, we’ve achieved some notable successes, although I can’t disclose the names. Internally, we’ve demonstrated that our test systems for ADAS are the most comprehensive test solutions in marketOur sophisticated software testing capabilities are enabling thousands of hours of reliable internal testing for ADAS, a critical requirement as testing evolves from rudimentary methods to highly advanced testing.
Another area to watch is connected vehicles and software-defined vehicles (SDVs), especially V2X (vehicle-to-everything) communication. While this sector has taken a bit of a backseat in 2024, I believe it’s poised for resurgence, with new investments likely in 2025-26.
In the meantime, Emerson’s Test & Measurement business has been enhancing its capabilities in design and testing for these emerging technologies, positioning us to continue supporting these innovations. In India, the focus remains more heavily on EVs, as that’s where immediate growth is. However, with multinational companies’ design centers established here, we’re providing solutions that cater to broader, global ADAS development needs.
Q9. – Regarding transportation, does it include metro projects? Is metro transportation part of the focus alongside other modes?
Baskar: We do work with partners in this space who provide solutions using our software and hardware platform. Globally, Siemens is one of our largest customers in connected rail. They presented at NI Connect 2024 in Austin, showcasing how Emerson Test & Measurement has helped them significantly reduce costs and improve testing processes as they roll out new train sets, covering everything from simulation to implementation.
So, while we do provide solutions in the rail sector and collaborate with customers and partners such as Siemens and Alstom, our main focus in transportation is on automotive, including electric vehicles (EVs), autonomous vehicles, and connected vehicles, along with various testing methods in CV’s too like hardware-in-the-loop and device testing.
Q10 – Can you share more insights into the TENMIC aspect, particularly regarding the opportunities we anticipate following its launch. What new opportunities do we foresee that weren’t available to us before?
Baskar: I believe a significant development in 2024 was the establishment of the TENMIC lab at Tata Elxsi, marking a major milestone in the relationship with Tata Elxsi and Emerson’s Test & Measurement group in India. Tata Elxsi plans to leverage this lab for pitching diverse solutions internally and has also expanded its reach beyond the Tata Group, using the lab to engage with the broader industry.
We’re looking at great contributions for the industry stemming from this initiative, not only within the Tata Group but also externally. Overall, we anticipate that the impact generated from this lab will increase exponentially over the next few years. We plan to continue investing in and upgrading the lab, focusing on automotive and other emerging areas.
Q11. – We know AI will continue to play a significant role across various industries. However, looking beyond technology, considering the global landscape, it’s not all positive -there are ongoing conflicts and uncertainties. Do you see any potential impacts on the Indian market?
Baskar: I think 2024 has highlighted significant instability in the market. If you look at ASEAN or our local markets, like the BSE, people have previously felt confident about our economy. However, the past few weeks have shown us that stability is elusive, and any sudden changes can disrupt the landscape.
From an economic perspective, the industry is witnessing a shift in the typical cycle. Historically, downturns would last four to five quarters followed by a recovery, creating a sinusoidal pattern. However, over the last five to six quarters, we’ve seen rapid fluctuations – one quarter might show growth, only for the next to decline sharply. This situation presents challenges for economists trying to predict trends, whether regarding potential recessions or economic recoveries.
We are in an environment where changes can happen rapidly. Despite these global uncertainties, India is in a favorable position.
Forecasts indicate that India’s GDP will likely remain robust, with projections above 5-6% for the next few years, despite some variation among agencies. Overall, I believe India is more stable than many global markets, and I foresee positive growth for the country.
In terms of our work at Emerson’s Test & Measurement group, we’re still just scratching the surface, and our customers are eager for our offerings. With Emerson’s involvement, we’re building stability and focusing on broadening our customer base in sectors like aerospace, defense, transportation, and semiconductors. We’ve made significant investments in 2024, and I anticipate that these will continue to pay off.
Q12. – Could you share your thoughts specifically on startups? There are dedicated publications that focus exclusively on this sector.
Baskar: India is currently one of the fastest-growing startup ecosystems in the world, recently rising to fifth place and likely to secure the third position soon. Despite facing various external challenges, India has become an excellent market for entrepreneurship, supported by a robust ecosystem that includes seed funds, angel investing, venture capital, and private equity.
While there are occasionally negative stories, like those surrounding Byju’s, they don’t reflect the entire startup ecosystem or the technology sector. Our main interest lies in deep tech startups, where we can make a significant contribution to industry growth. We’ve always been a part of the startup landscape, having initiated support programs for startups in India through programs like “Planet NI” several years ago. After a brief hiatus during the COVID pandemic, we are now relaunching those initiatives and restructuring our resources to focus specifically on the startup sector.
In 2024, we’ve collaborated with several startups, including signing MOUs and assisting them in launching their products like Piersight, a space startup. . We plan to intensify our efforts in deep tech by identifying resources to support startups and reinitiating our programs in this space.
One of the key ways we support startups is by providing access to technology. Many startups struggle to access the testing systems they need for their products during design and prototype stages. Our Engineering Innovation Center in Bangalore has been instrumental in helping startups design and test their prototypes. In 2024 alone, we’ve hosted around seven to ten startups at our center, allowing them to refine their products before launch.
Additionally, we facilitate connections within the industry. We collaborate with Government organizations and private industries for space projects and engage with various technology companies, positioning ourselves as effective connectors between startups, technology firms, and the market. This approach enhances our support for startups beyond just providing tools; we aim to help them develop and test their innovations effectively.
