Automotive Test Equipment Market Analysis

Automotive Test Equipment Market Overview:

The Automotive Test Equipment Market size was valued at USD 3.3 Billion in 2023. The Automotive Test Equipment industry is projected to grow from USD 3.43 Billion in 2024 to USD 4.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.44% during the forecast period (2024 - 2032). Growing automotive electronics complexity and a greater focus on vehicle safety are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Test Equipment Market Trends

Rising demand for electric vehicles propels market growth.

The rising demand for electric vehicles is driving up the market CAGR for automotive test equipment. As electric vehicles become more popular around the world, automakers are investing in new technology and testing equipment to improve their performance and efficiency. Automotive testing equipment is required for the development and testing of electric vehicle components like as batteries, motors, and power electronics. These components necessitate the use of specialist testing equipment capable of measuring power output, efficiency, and durability. The demand for this specialist testing equipment is projected to increase as manufacturers continue to create new electric car models.

In addition, automotive test equipment is employed in the development and testing of classic gasoline-powered automobiles. As automakers continue to improve these vehicles' performance and economy, they will need more complex testing equipment to verify that they fulfill new emissions and safety criteria.

The growing emphasis on vehicle safety is another driver of market expansion for automotive test equipment. Governments throughout the world are enacting stricter vehicle safety laws, and automakers are investing in new testing technology to ensure that their vehicles meet these requirements. As an example, Crash testing is an important component of car safety testing. Automobile manufacturers utilize sophisticated testing equipment to simulate various types of collisions and assess the impact on the vehicle and occupants. This testing is critical for enhancing vehicle safety and lowering the risk of injury or death in the case of an accident.

Other safety elements, including as airbags, seat belts, and electronic stability control systems, are also tested using vehicle test equipment. These features are growing increasingly advanced and complex, necessitating the use of specialist testing equipment to ensure that they function effectively.

The increasing complication of automotive electronics. Modern vehicles include a variety of electronic systems, such as infotainment, navigation, driving aid, and safety systems. These systems necessitate specialized testing equipment to verify correct operation and compliance with safety and performance criteria. Electronic systems and components such as sensors, controllers, and wiring harnesses are tested using automotive test equipment. This testing is critical for discovering and diagnosing faults with these systems, as well as ensuring that they are operationally sound and meet regulatory requirements.

The demand for specialist testing equipment is likely to rise as vehicles become more complicated and incorporate more electrical systems. To ensure that their electrical systems are trustworthy and operate effectively in all situations, automakers want specialized testing equipment that can replicate various driving conditions and environmental elements.

Automotive Test Equipment Market Segment Insights:

Automotive Test Equipment Product Type Insights

The global Automotive Test Equipment Market segmentation, based on Product Type includes Wheel Alignment Tester, Engine Dynamometer, Chassis Dynamometer, and Vehicle Emission Test System. In 2022, the chassis dynamometer had the highest revenue share. This is attributed to low-cost production and an increase in the number of automobile manufacturing facilities in developing countries. It also aids in determining the overall functioning of a vehicle's drivetrain and is widely utilized for pollution testing and mileage accumulation.

Automotive Test Equipment Vehicle Type Insights

The global Automotive Test Equipment Market segmentation, based on Vehicle Type, includes Passenger Cars, Light Commercial Vehicle, and Heavy Commercial Vehicle. In 2022, the passenger car category held the largest market share. By 2030, the category is expected to maintain its dominance by experiencing the fastest growth rate in the market for automotive test equipment. Customers' rising spending power, combined with rising demand for passenger automobiles in developed and emerging markets, have all contributed to category expansion.

Automotive Test Equipment Application Insights

The global Automotive Test Equipment Market segmentation, based on application, includes Mobile Device-Based Scan Tool, Handheld Scan Tool, PC/Laptop-Based Scan Tool And Others. The handheld scan tool segment had the highest revenue share in 2022 and is expected to maintain its dominance in the automotive test equipment market over the forecast period. Vacuum and air pressure testers, thermometers, battery testers, gas analyzers, fuel pressure testers, and emission analyzers are examples of handheld scan devices.

Figure1: Global Automotive Test Equipment Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Test Equipment Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America is the most important market for automotive test equipment, accounting for a large portion of the global market. There are several major automakers and automotive testing companies in the region, and there is a considerable emphasis on vehicle safety and emissions laws. This has resulted in a significant need for automobile test equipment, both classic and modern.

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

Figure2: Global Automotive Test Equipment Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Automotive Test Equipment Market accounts for the second-largest market share because of the acceptance of safety certification. Further, the German Automotive Test Equipment Market held the largest market share, and the UK Automotive Test Equipment Market was the fastest growing market in the European region

The Asia-Pacific Automotive Test Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to low production costs and the availability of inexpensive labour. Moreover, China’s Automotive Test Equipment Market held the largest market share, and the Indian Automotive Test Equipment Market was the fastest growing market in the Asia-Pacific region.

Automotive Test Equipment Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Test Equipment Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global 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, Automotive Test Equipmentindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Test Equipment industry to benefit clients and increase the market sector. In recent years, the Automotive Test Equipment industry has offered some of the most significant advantages to medicine. Major players in the Automotive Test Equipment Market, including ABB Ltd (Switzerland), Delphi Automotive PLC (UK), Actia S.A. (France), Advantest Corp (Japan), Horiba Ltd. (Japan), Softing AG (Germany), Teradyne Inc. (US), and Siemens (Germany). and others, are attempting to increase market demand by investing in research and development operations.

Siemens AG is a global technological firm based in Germany. Its operations include process and manufacturing automation and digitalization, intelligent infrastructure for buildings and distributed energy systems, rail transportation solutions, health technologies and digital healthcare services. Siemens is Europe's largest industrial manufacturer and the world leader in industrial automation and industrial software. In 2019, Siemens AG has announced the purchase of TASS International, a Dutch business specializing in autonomous car testing. Siemens' offering in the field of autonomous vehicle testing will be expanded as a result of the acquisition.

Horiba, Ltd. is a Japanese maker of precision measurement and analysis devices. They manufacture equipment for measuring and analyzing car exhaust gas (80% of the global market),[4] as well as environmental, medicinal, and scientific uses. Horiba is one of the world's top 25 analytical and life sciences instruments firms. For more than 50 years, the company has been active in measurement technologies. It is divided into five sectors: automobile testing systems (36% activity), environmental (11% activity), medical (17%), semiconductor (19%), and scientific subjects (17%). Today, the group, led by Atsushi Horiba, employs 5,965 people worldwide and generates $1,294 million in revenue. January 2020, Horiba Ltd. purchased FuelCon AG, a German firm specializing in battery and fuel cell testing. Horiba's offering in the field of electric vehicle testing has been expanded as a result of the acquisition.

Key Companies in the Automotive Test Equipment market include

• Robert Bosch GmbH (Germany)


• Honeywell International Inc. (US)


• ABB Ltd (Switzerland)


• Delphi Automotive PLC (UK)


• Actia S.A. (France)


• Advantest Corp (Japan)


• Horiba Ltd. (Japan)


• Softing AG (Germany)


• Teradyne Inc. (US)


• Siemens (Germany)

Automotive Test Equipment Industry Developments

June 2021, National Instruments Corporation has released a new ADAS test solution to aid manufacturers and suppliers in testing and validating advanced driver assistance systems.

November 2019, MTS Systems Corporation purchased E2M Technologies B.V., a Dutch electric car testing company. MTS's portfolio in the field of electric vehicle testing has been expanded as a result of the purchase.

December 2019, AB Dynamics plc, a firm established in the United Kingdom that specializes in automobile testing equipment, has gone public on the London Stock Exchange. The company's initial public offering raised £50 million ($65 million).

Automotive Test Equipment Market Segmentation:

Automotive Test Equipment Market By Product Type Outlook

• Wheel Alignment Tester


• Engine Dynamometer


• Chassis Dynamometer


• Vehicle Emission Test System

Automotive Test Equipment Market By Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicle


• Heavy Commercial Vehicle

Automotive Test Equipment Market By Application Outlook

• Mobile Device-Based Scan Tool


• Handheld Scan Tool


• PC/Laptop-Based Scan Tool


• Others

Automotive Test Equipment Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America