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From precision manufacturing and smart factories to AI-powered diagnostics and automation, businesses across sectors are redefining their operations around real-time data collection and analysis. This digital transformation is fueling a quiet revolution—one led by manufacturers of instruments and related products.
These manufacturers design and produce the measuring devices, sensors, and systems that serve as the backbone of modern industry. Their tools enable everything from factory automation and environmental monitoring to surgical precision and aerospace navigation. As industries grow more reliant on accurate, connected, and compliant systems, the demand for specialized instruments is surging.
This rising importance is translating into tangible growth. While the instruments and related products sector remains largely composed of small, specialized firms, it's showing impressive resilience and adaptability in a competitive global market. In this article, we'll explore the latest trends and statistics in the industry.
Data compiled by MNI, compiler and publisher of the industrial data that powers IndusrySelect, reveals a diverse industry where businesses tend to remain small but specialized.
MNI data finds there are currently 10,769 manufacturers of instrument and related products in the United States that employ 747,558 workers. Over the past year, employment in the sector has grown 1.3%.
Average total reported sales add up to $845 billion, a number that illustrates the strong demand for specialized tools.
Imports and distribution trends show that the U.S. instruments and related products industry is more open to foreign markets than other industries. While 11% of all manufacturers rely on imports, this percentage increases to 18% for instruments and related products manufacturers. The market is also more diverse than average, with 57% of manufacturers relying on exports for distribution compared to 29% for all manufacturers.
Ownership numbers align with broad trends for the entire manufacturing sector, with women owning 2% of these businesses and minorities making up 1% of owners. Company structures are more varied, with 17% of businesses being publicly owned, compared to 5% for all manufacturers. This difference is likely due to the needs of the defense and aerospace industries for specialized tools.
Geographical distribution for instruments manufacturers in the U.S. is evenly spread out, with 27% of these companies in the South, 25% in the Midwest, another 25% in the West, and 23% in the Northeast.
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These subindustries are a non-exhaustive list of the many niches that comprise the U.S. instruments and related products industry. Each plays a unique role in enabling precision, automation, and innovation across the industrial, healthcare, defense, and consumer sectors.
Thanks to strong and sustained demand from the aerospace and defense industries, search and navigation equipment manufacturers remain a key subindustry. These companies produce highly specialized tools such as radar and sonar systems, flight data recorders, GPS tracking devices, and heads-up displays (HUDs) used in both military and commercial aviation. Innovation in autonomous navigation and satellite-based systems continues to drive R&D investment in this space.
This broad subindustry includes a wide array of tools that help businesses monitor, test, and control physical variables such as temperature, pressure, humidity, flow rate, and force. Products include meteorological instruments, fatigue testing systems, gauges, drafting tools, and surveying equipment. These devices are critical in industries ranging from energy and construction to automotive and manufacturing, where precision and repeatability are essential.
The heathcare industry depends heavily on this subindustry for surgical instruments, diagnostic equipment, imaging devices, lab testing tools, and research apparatus. These products are subject to rigorous quality and regulatory standards, making compliance and precision manufacturing top priorities. Continued growth in medical diagnostics, biotech R&D, and aging demographics is sustaining demand, even as manufacturers navigate a complex regulatory landscape.
Vision care remains a growing market as eye health awareness increases and digital screen exposure rises. Manufacturers in this niche produce eyeglass frames, contact lenses, sunglasses, and optical instruments. There’s also a significant B2B segment, providing diagnostic tools and devices to optometrists, ophthalmologists, and vision care centers. Trends like smart glasses and AR/VR integration may further transform this subindustry.
Once dominated by consumer demand, this subindustry is evolving to serve new markets such as digital content creation, industrial imaging, and medical or scientific imaging. Manufacturers produce cameras, lenses, film, lighting equipment, and advanced imaging systems used in automated inspection and quality control. Growth in e-commerce, marketing, and virtual content is reshaping demand dynamics here.
This niche specializes in time-keeping devices, producing the movements and other minute parts used in watches, clocks, timers, and chronometers. There is a consumer-facing market, but many industrial processes also need precise time-keeping products.
The following trends are shaping the industry and reflect what manufacturers should prioritize to unlock future growth.
Experts are predicting a CAGR of 3.19% between 2024 and 2028 for the industrial products and services sector as a whole.
There is a link between this projected growth and automation. As more businesses look for ways to streamline processes and cut costs, the need for accurate sensors and other measuring instruments increases. Manufacturers able to deliver reliable products that reduce the need for human input will maintain their edge for the foreseeable future.
As automation becomes a priority for many businesses, the demand for smart devices that can record and share data with a more extensive system increases.
IoT is currently one of the most important technologies for the industrial sector. Manufacturers who can deliver connected features and support integration with digital systems will stand out.
Demand for products that can interact with AI and robotics will keep growing as more manufacturers leverage this technology to cut costs. Labor shortages are another trend pushing businesses to adopt automation and remote monitoring.
Cutting costs is a priority for many businesses. Measuring and testing systems that can grow over time and adapt to changing needs are in high demand. Rather than developing individual products, manufacturers can deliver more value by designing systems that integrate modular components based on the needs of each business.
For manufacturers, designing scalable systems often means offering hardware that can support software updates in the future. This approach requires an updated business model that emphasizes ongoing support and product development.
More than half of businesses are looking into spending more on risk compliance. Many industries are facing tighter regulations, with rules that address cybersecurity, transparency, and quality. These rules are even stricter for businesses that deliver solutions for the public sector, such as the defense industry.
Manufacturers with a thorough understanding of the latest rules and their potential challenges can stand out by developing tools that help meet these requirements. Instruments and related products manufacturers are also adapting to meet stricter compliance requirements on their end.
The instruments and related products industry is facing a promising future. If you're ready to connect with industry professionals to promote products and services that support the changing needs of this sector, IndustrySelect can help.
With detailed profiles for close to half a million U.S. manufacturers, identifying the most relevant prospects and developing a tailored approach has never been easier. See for yourself how our detailed profiles can make a difference with a free demo.
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