Data Acquisition (DAQ) System Market Size, Share, Growth, and Industry Analysis, By Type (Peripheral Component Interconnect (PCI), LAN Extensions for Instrumentation (LXI)/ Ethernet, VME Extensions for Instrumentation (VXI), PCI Extensions for Instrumentation (PXI), Universal Serial Bus (USB) and Standalone), By Application (Telecom and IT Industry, Power and Energy, Automotive Industry, Chemicals, Aviation and Defense and Others), and Regional Insights and Forecast to 2034

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DATA ACQUISITION (DAQ) SYSTEM MARKET OVERVIEW

The global data acquisition (DAQ) system market size was USD 1.942 billion in 2025 and is projected to touch USD 2.441 billion by 2034, exhibiting a CAGR of 2.6% during the forecast period.

Increasing adoption of data acquisition (DAQ) systems for real time data monitoring and analysis. The global market for data acquisition (daq) system is on a robust rise owing to advancing technology across industries such as automotive, aerospace, healthcare, and energy as well as a rising demand for real time data monitoring and analysis. DAQ systems are used to capture signals, process them, and convert physical parameters (temperature, pressure, vibration) into digital values for monitoring, and optimization. As automation, smart manufacturing and Industry 4.0 continue to become more important, companies implement DAQ systems to improve the efficiency of their operations, minimise unplanned downtime and pave the way for predictive maintenance. In light of the widespread assumptions regarding the significance of connected devices, IoT platforms, and cloud access of data, the demand for end-to-end solutions that unify between hardware and software grows, which encourages commercial availability of technology that accelerates market proliferation.

Additionally, sensors, modular instruments, and wireless communication technology are advancing to allow tighter tolerances and less rigidity in DAQ hardware. DAQ systems are increasingly becoming adopted for vehicle testing, emission monitoring and electric vehicle performance evaluation in the automotive industry and for flight testing and structural monitoring in the aerospace and defence. The medical field is another industry that uses DAQ tools in both diagnostics and clinical practice as well as in medical research. Rising investment in renewable energy projects, smart grids, and power distribution monitoring is likely to drive the opportunities of DAQ solutions. With businesses seeking to base their decisions more and more on data in the future, the market for DAQ systems is likely to continue playing an important role in enabling innovation and efficiency in various industrial environments.

COVID-19 IMPACT

Data Acquisition (DAQ) System Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The data acquisition (DAQ) system market was affected by COVID-19, which posed drastic impact with production dropped, business shutdown. In the initial phases, stay-at-home-orders, semiconductor supply chains and restrictions, and logistical challenges resulted in DAQ system production and deployment being delayed. Sectors like automotive, aerospace and construction saw project delays, which curtailed short-term demand. But the pandemic hastened the digitalization and the rollout of automation in many industries. Medical device monitoring and diagnostics became more dependable using DAQ in healthcare organizations and remote operations and real-time data monitoring, were taken up by the energy and utilities. In addition, vaccine development, drug testing, and simulation studies were conducted in research labs with DAQ systems. Increased emphasis on data-driven decision-making, integration with IoT, and Industry 4.0 initiatives in wake of the crisis have propelled the market into future. So, even though the pandemic was acting against the supply chains, it was reinforcing the strategic role of DAQ solutions.

LATEST TRENDS

Rising Adoption of Modular and Cloud-Integrated DAQ Solutions to Drive Market Growth

Shift toward modular and cloud-based DAQ systems is one of the significant trends in the DAQ system market Flexible DAQ systems that can be adapted to new needs have meanwhile become increasingly popular within the industry and are slowly replacing traditional fixed DAQ systems. Turnkey solutions are less flexible and versatile; in this case- modular-based platforms could save time and money. Moreover, the cloud is being integrated for real-time, remote monitoring, storage of data and processing to help complex decision making. Rising Applications of IoT and Edge Computing to Increase Demand for DAQ Systems capable of processing high-speed data with security and low latency. In addition, automotive, aerospace, and renewable applications are also adopting DAQ systems for simulation, testing, and predictive maintenance. This trend is demonstrative of the market’s movement to smart, connected and software-based solutions that enhance performance and enable Industry 4.0 projects.

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DATA ACQUISITION (DAQ) SYSTEM MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into Peripheral Component Interconnect (PCI), LAN Extensions for Instrumentation (LXI)/ ethernet, VME Extensions for Instrumentation (VXI), PCI Extensions for Instrumentation (PXI), Universal Serial Bus (USB) and standalone

• Peripheral Component Interconnect (PCI): PCI based DAQ systems are commonly used in industry because of their sufficient high-speed communication and reliability. They are a perfect solution for those industries that need highly robust and accurate data transfer in testing applications.

• LAN Extensions for Instrumentation (LXI)/Ethernet: LXI architectures employ Ethernet connectivity that scale and flex with distributed test requirements. They work well in situations that demand remote capabilities or simple assembly of a module.

• VME Extensions for Instrumentation (VXI): VXI systems have the durability and modularity required for aerospace and defense testing. They are rugged, purposeful devices that add utility in high stress situations.

• PCI Extensions for Instrumentation (PXI): PXI offers modular and software-connected testing for heavy-duty requirements. With its flexibility and compatibility with machines, it is more and more largely employed in industry.

• Universal Serial Bus (USB): USB DAQ systems are low-cost and portable and provide Plug-and-Play operation. They are commonly used in small-scale applications, research, and basic testing.

• Standalone: Standalone DAQ devices include both hardware and software in a single product. These are also applicable for critical tasks where the independence, reliability and freedom from external reference system are important.

By Application

Based on application, the global market can be categorized into telecom and IT industry, power and energy, automotive industry, chemicals, aviation and defense and others

• Telecom and IT Industry: In the telecom and IT industry, DAQ systems ensure the stability of networks, the validation of hardware, and the performance of the entire systems. They allow testing the infrastructure parts in a range of conditions.

• Power and Energy: State-of-the-art DAQ products allow the control of grids and electrical systems that provide sustainable and reliable operation. They can also be useful in predictive maintenance and energy saving initiatives.

• Automotive Industry: The Automotive industry relies on DAQ systems for durable, performance, and safe testing. They are also used when vehicle parts need to be checked during simulation and actual activity.

• Chemicals: DAQ systems for tight control of chemical processes according to safety guidelines. They are also able to improve control on quality by accurate data analyses.

• Aviation and Defense: Aviation and defense areas use DAQ systems for testing, simulation, and defense systems verification. Because they can work in the extreme, they are extremely high in value.

• Others: Refers to the application areas such as education, research and manufacturing industries where DAQ systems are used for training, innovation and measurement. Suitable for many test applications due to their low cost.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Demand for Real-Time Data Monitoring and Analysis to Boost the Market

The increasing focus on real-time data monitoring in various applications is one of the significant factors driving the Data Acquisition (DAQ) system market growth. Data empowerment is becoming a necessity with incremental focus on data-driven decision-making and consequently needs accurate, real-time, and continuous measurement of parameters like temperature, pressure, vibration, electrical signals. For industries including automotive, aerospace, and power generation, DAQ systems are crucial for equipment testing, validation, and performance optimization. Furthermore, with growing trend toward automation and smart manufacturing, the demand for DAQ solutions increases even more, as the solutions can easily be integrated inside Industrial Internet of Things (IIoT) platforms. Real-time monitoring improves not only productivity, but can also aid predictive maintenance, reducing downtime and costs. The fact that DAQ systems can yield immediate action from information and that technology has made high-speed and multi-channel data acquisition systems possible, has made these an essential part of industrial environments today. This overall demand is a key market growth and expansion driver.

Expansion of Aerospace, Defense, and Automotive Testing Needs to Expand the Market

The demand for DAQ systems is at an all-time high across the aerospace, defence, and automotive sectors, which is driving the market growth. In A&D, the demand for accurate data throughout flight and environmental testing as well as defence system validation heavily depends on DAQ technologies. In much the same way, the automotive industry is going through substantial change due to EVs, autonomous driving and tougher safety standards. These advances demand ongoing testing of vehicle parts, battery systems, and real-world performance in a variety of circumstances. With the precision and scalability of DAQ systems, these complex test needs can be met to ensure compliance and drive innovation. Besides, the trend for lightweight materials and energy-efficient solutions for aviation and automotive application will increase further the demand for robust measurement tools.   Increasing R&D investments and regulatory focus on safety and performance standards will bolster the penetration of DAQ systems in these industries.

Restraining Factor

High Implementation Costs and Complex Integration Challenges to Potentially Impede Market Growth

The high initial investment for advanced hardware and software and the need for maintenance will continue to act as a significant restraining factor for the DAQ system market. For many SMEs, it is a struggle to justify an appropriate budget for these systems, particularly when less expensive and less advanced options are on offer. The costs are compounded by the necessary expertise for configuring, operating, and interpreting data generated. Additionally, the expansion of DAQ systems with published legacy gear and IT support can be complicated, involving customization and compatibility modifications. In sectors like manufacturing and energy, for instance, where there are still older systems running, migrating from legacy to modern DAQ platforms could result in downtime and incurred added costs. These fear factors therefore have a tendency to hamper adoption, especially where cost is an issue. Although DAQ systems provide long term benefits in efficiency and performance, the initial costs and complexities in adoption serve as strong obstacles for its widespread deployment.

Rising Demand for IoT and Industry 4.0 Integration To Create Opportunity for the Product in the Market

Opportunity

Huge potential in the DAQ system market is the fast adoption of internet of things (IoT) and industry 4.0 trends in industries. With a move for businesses towards digital transformation, the demand for real-time data monitoring, predictive analytics and intelligent automation has never been greater, all of which depend on a reliable and precise DAQ system. Smart sensors have been adopted Among manufacturers, energy companies, and automotive companies, which have been employing smart connected sensors with the help of DAQ platforms to achieve effective operations and avoid failures.

The trend towards networked factories and smart grids also increases the need for scalable as well as flexible DAQ that can process high data throughputs. Furthermore, advancements in wireless connectivity and distributed tools make operating DAQ systems easier and more affordable. Thanks to this merging of DAQ with IoT and Industry 4.0 techniques, the future market is opening with promising prospects, both stabilised and mind-blowing, especially in up-and-coming markets which carry out industrial modernisation.

High System Complexity and Integration Issues Could Be a Potential Challenge for Consumers

Challenge

The daunting task of integrating sophisticated hardware and software across multiple applications remains a major concern for the DAQ system market. Typical modern industry requires DAQ systems to gather data from different sensors, devices, and networks that spread over various protocols and standards. This creates a problematic situation whereby it is both time consuming and expensive to seamlessly integrate them. Furthermore, applicational domains as aviation, defence, energy, request a high accuracy and reliability, that significantly rises the level of complexity of the design and testing.

Small and medium business entities may find it difficult to implement these systems since they tend to have lesser budgets and technical experience. The speed at which technology is changing is also a problem, with systems becoming quickly outdated and needing to be replaced or updated frequently. These integration challenges, including high deployment and maintenance costs, become obstacles for the large-scale adoption, thus hindering the market growth, even though the demand is strong.

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DATA ACQUISITION (DAQ) SYSTEM MARKET REGIONAL INSIGHTS

• North America

The United States Data Acquisition (DAQ) system market is witnessing strong growth owing to its advanced industrial and technological infrastructure. A significant share is contributed by aerospace, defense, and automotive industries, where high-performance testing and monitoring are essential. The presence of key players and robust R&D investments ensures rapid adoption of modern DAQ solutions. Additionally, the country’s focus on smart grids, renewable energy integration, and industrial automation enhances the demand for reliable data acquisition platforms. Strong regulatory frameworks and government-backed technological initiatives further support adoption across critical sectors. With continuous advancements in IoT and AI, DAQ systems in North America are being increasingly integrated into intelligent manufacturing and predictive maintenance applications. As a result, the United States remains a leader in innovation and early deployment, positioning the region as a dominant market player with substantial opportunities for future expansion in various industries.

• Europe

Europe represents a stable yet steadily expanding Data Acquisition (DAQ) system market share, driven by diverse applications across automotive, power and energy, and chemicals sectors. Germany, in particular, plays a vital role due to its leadership in automotive manufacturing and research. The growing adoption of electric vehicles has led to higher demand for advanced testing systems, which directly drives DAQ market growth. The United Kingdom and France also contribute significantly, with a strong focus on aerospace and renewable energy testing solutions. Europe benefits from stringent regulatory standards that ensure high-quality monitoring, safety compliance, and energy efficiency. This regulatory environment encourages industries to deploy sophisticated DAQ systems, especially in laboratories and large-scale manufacturing facilities. Additionally, European companies are actively adopting DAQ solutions to support sustainability initiatives and digital transformation projects. With continued technological investments, Europe is expected to maintain a strong position in the global DAQ system market.

• Asia

Asia holds the fastest-growing share of the global DAQ system market, with China, Japan, and India leading the adoption. Rapid industrialization, infrastructure expansion, and the growing automotive and electronics sectors are driving demand for advanced testing and monitoring solutions. China is investing heavily in smart manufacturing and digital industry development, which strengthens its reliance on DAQ systems. Japan continues to innovate in electronics and automotive testing, while India’s energy and IT sectors are adopting these solutions to support modernization. The region also benefits from government initiatives promoting industrial automation and renewable energy integration, which further boost demand. Asia’s cost-effective manufacturing capabilities attract global companies to establish testing facilities and production bases, fueling market expansion. Moreover, the increasing adoption of Industry 4.0 and IoT-based monitoring solutions is pushing the adoption of cloud-integrated DAQ systems. With sustained economic growth and industrial innovation, Asia is poised to dominate future global market expansion.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Leading industry players in the DAQ system market are focusing on innovation, strategic partnerships, and product advancements to strengthen their positions. Significant investments are being made in developing modular and scalable solutions that integrate seamlessly with IoT and cloud-based platforms, enabling real-time monitoring and predictive analytics. Companies are also emphasizing R&D efforts to design high-speed, multifunctional DAQ systems that cater to demanding applications in aerospace, automotive, energy, and industrial automation. Collaborations with universities, research institutes, and technology providers are helping expand system capabilities and ensure compliance with evolving standards. Many players are also targeting emerging markets in Asia and the Middle East, establishing local partnerships and production facilities to address growing industrial demand. Sustainability is another key area, with manufacturers integrating energy-efficient designs to support green initiatives. Through acquisitions, alliances, and continuous innovation, these players aim to expand their customer base and capture a larger global market share.

List Of Top Data Acquisition (Daq) System Companies

• ABB Ltd. (Switzerland)
• Schneider Electric (France)
• Honeywell International (U.S.)
• Siemens AG (Germany)
• Rockwell Automation (U.S.)
• Yokogawa Electric Co. (Japan)
• Emerson Electric Co. (U.S.)
• General Electric (U.S.)
• Omron (Japan)
• Agilent Technologies (U.S.)
• Advantech (Taiwan)
• Campbell Scientific (U.S.)
• Data Translation (U.S.)
• MathWorks (U.S.)

KEY INDUSTRY DEVELOPMENT

April 2023: Siemens AG (Germany) launched an upgraded version of its Simatic Data Acquisition System with enhanced connectivity to cloud platforms and industrial IoT environments. This development aims to provide industries with improved real-time monitoring, predictive maintenance, and integration with digital twin solutions. The update reflects Siemens’ focus on supporting smart factories and Industry 4.0 initiatives by enabling faster, more accurate, and scalable data collection across industrial operations.

REPORT COVERAGE

The report provides a comprehensive analysis of the Data Acquisition (DAQ) System Market, covering key aspects such as market size, growth drivers, restraints, opportunities, and challenges influencing the industry. It includes detailed segmentation by type and application, offering insights into how various technologies such as PCI, PXI, USB, and standalone systems are being adopted across industries. The study further examines the impact of global disruptions like the COVID-19 pandemic and geopolitical tensions, highlighting how these events have reshaped supply chains, technology adoption, and investment patterns in automation and digitalization.

Additionally, the report emphasizes competitive dynamics by evaluating strategies adopted by major players, including product launches, collaborations, and R&D initiatives to strengthen their market position. It also provides regional insights, analyzing demand trends in North America, Europe, and Asia, along with emerging markets. The coverage ensures stakeholders gain a clear perspective on current market scenarios, future opportunities, and strategic pathways for sustainable growth.