Automated Test Equipment Market

Lower product prices boost the consumer electronics industry and drive market growth

The rising popularity of system-on-chip (SoC) and high demand for consumer electronics are expected to be the key drivers for the ATE market over the forecast period. Growing electronic components in the automotive industry and penetration of smartphones are expected to drive the market. Miniaturization broadens the application range of ATE. Furthermore, considerable technological advancement coupled with design complexity and the need for efficient testing is expected to drive the market CAGR.

Advancements in semiconductor manufacturing processes and the expansion of wireless networks in developing countries are expected to significantly drive the growth of the automatic test equipment market over the next few years. Furthermore, considerable technological advancement coupled with design complexity and the need for efficient testing are factors expected to favor market expansion.

Recent technological advancements have significantly reduced the cost and time of manufacturing semiconductor ICs and increased companies' profit margins. ATE Manufacturing companies continuously invest in research and development activities to enhance their product portfolio and adapt to the latest improvements in semiconductor equipment. Thus, driving the Automated Test Equipment market revenue.

Regulatory compliance is a driving force in the Global Automated Test Equipment Market Industry, as companies strive to adhere to stringent industry standards. Various sectors, including healthcare and automotive, are subject to rigorous testing and certification processes. Automated test equipment facilitates compliance by providing accurate and repeatable testing results, which are essential for meeting regulatory requirements. As global regulations evolve, the demand for automated testing solutions is likely to increase, further solidifying the market's growth trajectory.

The expansion of emerging markets presents a substantial opportunity for the Global Automated Test Equipment Market Industry. Countries in Asia-Pacific and Latin America are witnessing rapid industrialization and technological adoption, driving the need for automated testing solutions. As local manufacturers seek to enhance their production capabilities, the demand for efficient and reliable testing equipment is expected to rise. This trend may lead to increased investments in automated testing technologies, contributing to the overall growth of the market.

Quality assurance remains a critical focus for manufacturers, propelling the Global Automated Test Equipment Market Industry forward. Companies are increasingly investing in automated testing to minimize defects and enhance product reliability. This trend is particularly evident in sectors such as aerospace and defense, where safety and precision are non-negotiable. The emphasis on quality is expected to contribute to a compound annual growth rate of 3.85% from 2025 to 2035, as organizations recognize the long-term benefits of adopting advanced testing methodologies.

The Global Automated Test Equipment Market Industry is experiencing rapid technological advancements that enhance testing capabilities. Innovations in software and hardware are enabling more efficient and accurate testing processes. For instance, the integration of artificial intelligence and machine learning into automated test systems allows for predictive maintenance and real-time data analysis. This trend is likely to drive the market, as companies seek to improve product quality and reduce time-to-market. The market is projected to reach 7.65 USD Billion in 2024, reflecting the growing demand for sophisticated testing solutions.

The increasing complexity of electronic devices is a significant driver for the Global Automated Test Equipment Market Industry. As consumer electronics, automotive systems, and telecommunications evolve, the need for rigorous testing becomes paramount. Automated test equipment ensures that these devices meet stringent quality standards and regulatory requirements. The market is expected to grow steadily, with a projected value of 11.6 USD Billion by 2035. This growth is indicative of the industry's response to the rising demand for reliable and efficient testing solutions across various sectors.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Rising demand for low-cost consumer products coupled with steadily rising adoption in the semiconductor industry has been identified as the key drivers for the growth of the ATE market in North America, especially in the United States. Although expensive ATEs represent a cost-effective solution in the long run, as they can be used to test large samples with minimal human intervention.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: WEIGHT LOSS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Automated Test Equipment market accounts for the second-largest market share. With its hyper-digitalized cities, Europe is adopting IoT and implementing it in almost all sectors, driving the need for automated test equipment for better deployment. Further, the German Automated Test Equipment market held the largest market share, and the UK Automated Test Equipment market was the fastest-growing market in the European Region.

The Asia-Pacific Automated Test Equipment Market is expected to grow at the fastest CAGR from 2023 to 2030. Future technologies such as adaptive testing, advanced design for testability (DFT), faster mixed-signal testers, fine-pitch probe cards, and design standards are expected to change market dynamics significantly. Increased government efforts to develop advanced manufacturing processes in countries such as China, Indonesia, Malaysia, Singapore, Thailand, and Taiwan are also expected to boost growth. Moreover, China’s Automated Test Equipment market held the largest market share, and the Indian Automated Test Equipment market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Automated Test Equipment market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automated Test Equipment industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Automated Test Equipment industry to benefit clients and increase the market sector. In recent years, the Automated Test Equipment industry has offered some of the most significant medical advantages.

Major players in the Automated Test Equipment market, including Chroma ATE Inc. (Taiwan), Cobham Plc (U.K.), Astronics Test Systems (U.S.), Agilent Technologies Inc. (U.S.), Teradyne Inc. (U.S.), Advantest Corporation (Japan), LTX-Credence Corporation (U.S.), Roos Instrument Inc. (U.S.), National Instrument Corporation (U.S.), Marvin Test Solution Inc. (U.S.) and others, are attempting to increase market demand by investing in research and development operations.

National Instruments Corporation, or NI, is an American multinational company with international operations. Headquartered in Austin, Texas, it produces automated test equipment and virtual instrumentation software. Common applications include data acquisition, instrument control, and machine vision. In April 2022, National Instruments (NI) acquired Kratzer Automation. NI expands its EV testing capabilities with the acquisition of Kratzer Automation. The company can test all important components of electric vehicles, such as batteries, inverters, and engine controls, by providing electric vehicle testing software and fully integrated test equipment.

According to NI, combining NI's flexible EV hardware and software test platform with Kratzer Automation's purpose-built EV software and integration capabilities will enable faster response to changing test needs, accelerate time-to-market and reduce the overall cost of testing more broadly customer range.

Chroma ATE Inc. is a Taiwanese electronic test and measurement instrument company founded in 1984. The company develops and manufactures various electronic test and measurement equipment, automatic test equipment (ATE), signal generators, power supplies, and intelligent manufacturing execution systems (MES). The company is part of the Chroma Group, a Taiwanese conglomerate.