Automated Test Equipment (ATE) Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Automated Test Equipment (ATE) Market Forecast 2023-2027

The Automated Test Equipment (ATE) Market size is estimated to increase by USD 2.04 billion, at a CAGR of 5% between 2022 and 2027. The growth of the market depends on several factors, including the augmented production of electronic goods, the growing telecommunications industry, and the test equipment evolving into software-defined platforms supported by an open software ecosystem. ATE, also known as automatic test equipment, is used to conduct tests on various devices, equipment, or units. The entire testing process involves automation, which quickly executes the necessary measurements and evaluation of test results. ATE can be as simple as a simple computer-controlled digital multimeter to a highly complicated system that houses several test instruments, such as real or simulated electronic test equipment. These complex systems can automatically test and diagnose errors in sophisticated devices such as electronic packaged parts or wafers that comprise systems on chips and ICs.

What will be the size of the Automated Test Equipment Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (consumer electronics, telecommunications, aerospace and defense, and others), product (non-memory ATE, memory, and discrete), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. 

By End-user

The market share growth by the consumer electronics segment will be significant during the forecast period. In this segment, the increasing year-over-year growth rate of the global ATE market is mainly attributed to the high demand for mobile devices such as smartphones and tablets due to the advantages of mobility and multi-functionality offered by mixed-signal ICs. The shorter replacement cycle of mobile devices due to technological advances and the changing preferences of consumers have boosted the sales of mobile devices, proportionally growing the demand for mixed-signal ICs. Also, increasing laptop sales will contribute to the growth of the market, as consumers are increasingly shifting from desktop personal computers (PCs) to laptops.

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The consumer electronics segment was valued at USD 1.75 billion in 2017 and continued to grow by 2021. The major consumer electronic products comprise smart televisions, laptops, smartphones, digital cameras, digital watches, and smart home appliances, among several others. Such products are incorporated with technologically enhanced ICs and semiconductor devices, which make these devices into smart devices. To ensure that the basic electronic components function reliably, consumer electronics manufacturers resort to the adoption of ATE, which runs a necessary diagnosis on these components and helps in analyzing and identifying faulty components before they are incorporated into the actual production process. Hence with robust growth in the demand for such smart consumer electronic products, Technavio estimates that the ATE market in the consumer electronics segment will witness significant growth during the forecast period.

Key Region

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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Major electronics manufacturers across the world are currently outsourcing the manufacturing and assembling of components to Asian countries, especially China and India. The shift is more significant in segments such as passive electronic components, semiconductor assembly, and testing facilities, which have a substantial requirement of labor. In APAC, governments of various countries such as India and China are promoting various initiatives such as the 'Make in India' and 'New Open-Door policy' to promote the growth of the economy, besides attracting investments from several foreign companies to expand their businesses in respective nations. The China-based Xiaomi has started its cellular phone manufacturing units in India to capture its potential market. Similarly, many other big companies, including Samsung Electronics Co. Ltd., have started investing in these initiatives. This will be a major demand driver for the ATE market.

Market Dynamics and Customer Landscape

The Market is witnessing significant growth, driven by the relentless pursuit of quality improvement and technological advancements in semiconductor manufacturing. Semiconductor manufacturing companies are increasingly adopting end-to-end testing solutions to enhance the performance capability and speed of operation of their devices. In the fiercely competitive landscape, controlling the cost of semiconductor devices is crucial for maintaining profit margins. The Asia Pacific Market, propelled by the region's burgeoning semiconductor industry and developing nations' demand for electronic components, is experiencing exponential growth. R&D activities focus on developing effective testing methodologies to address the design complexity and reliability testing requirements of modern semiconductor manufacturing processes. As consumer demands for reliable and efficient electronic devices continue to rise, the ATE market plays a pivotal role in ensuring the quality and performance of semiconductor ICs across diverse applications and industries. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The Market is experiencing significant growth, driven by augmented production of electronic goods and technological advancements in semiconductor manufacturing processes. Semiconductor manufacturing companies are increasingly adopting end-to-end testing solutions to enhance quality improvement and ensure effective testing of semiconductor devices. With a focus on performance capability and reliability testing, ATE solutions play a crucial role in optimizing the speed of operation and reducing the cost of semiconductor devices. The Asia Pacific Market is witnessing substantial expansion, fueled by the burgeoning semiconductor and electronics industry in developing nations like China, Japan, and Singapore. The region's strong growth in smartphone sales further propels the demand for ATE solutions, positioning China, Hong Kong, Vietnam, Singapore, and Taiwan as major producers in this dynamic market landscape.

A substantial number of people use the internet with the help of smartphones. Moreover, the increased use of the internet through smartphones has induced manufacturers to introduce new technologies like LTE, 4G, and 5G to these platforms. Therefore, due to the growing availability of inexpensive smartphones, the number of people with access to the internet is increasing. This will, in turn, propel the demand during the forecast period.

Significant Market Trends

Automotive wireless technologies are another factor supporting the Market share in the forecast period. The automotive sector is undergoing a drastic change from manufacturing traditional vehicles to cars that are equipped with the latest electronic devices, which enhance vehicle performance and address the entertainment needs of people. Several manufacturers in the region have embedded cellular technologies, which automatically alert emergency centers in the event of serious accidents. Passenger cars are now being equipped with advanced GPS systems and internet connectivity through 3G, 4G, or Wi-Fi. The use of such wired and wireless systems in vehicles will increase the demand.

Furthermore, owing to the restructuring of the production process, the automotive sector has seen the sales volumes of commercial vehicles and passenger cars returning to pre-crisis levels in these countries. The improving economic situation, together with the rising consumer confidence, has resulted in a higher demand for new, fuel-efficient, and technologically advanced cars equipped with more safety and advanced features such as MOST150 and Broad R-Reach Ethernet. The increase in the implementation of these technologies is expected to generate demand in the automobile sector during the forecast period.

Major Market Challenge

A necessity for price-sensitive and multiple technology solutions will be a major challenge for the ATE market during the forecast period. The continuously increasing cost of raw materials coupled with the increasing import duties by several countries had resulted in the increased production cost of test equipment, which is further restricting new purchases by end-users, as price-sensitive end-users seek low-cost products. Furthermore, developing test equipment that is compatible with a wide range of technologies is a major concern for providers of testing solutions. Therefore, developing a testing solution that is compatible with various technologies is important.

Furthermore, smartphones are equipped with Wi-Fi, Bluetooth, cellular Global Positioning System (GPS), and FM radio technologies functioning at different bandwidths. Some of these technologies have simultaneous radio signals. These factors may restrict the compatibility of the test equipment, with all the technologies functioning simultaneously. The growing need for constant product development with additional features and technology, high brand image, after-sales services, and continuous product support has become critical for companies to sustain in the market. These factors add to the overall cost of test equipment, thereby restricting new investments in the market by end-users, which will hinder the market growth during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Automated Test Equipment Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Advantest Corp.: The company offers automated test equipment solutions such as V93000, T2000, T6391.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ADVINT LLC
• Aemulus Holdings Bhd
• Aimil Ltd.
• Anritsu Corp.
• Astronics Corp.
• Averna Technologies Inc.
• BAE Systems Plc
• Chroma ATE Inc.
• Cobham Ltd.
• Cohu Inc.
• INNOTECH Corp.
• Keysight Technologies Inc.
• National Instruments Corp.
• Rohde and Schwarz GmbH and Co. KG
• ROOS INSTRUMENTS Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The Market analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Consumer electronics
  • Telecommunications
  • Aerospace and defense
  • Others

• Product Outlook 
  • Non-memory ATE
  • Memory
  • Discrete

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market is witnessing significant growth, driven by the automotive and semiconductor industries' demand for quality improvement and end-to-end testing solutions. Semiconductor manufacturing companies are increasingly adopting ATE to enhance performance capability and reduce the cost of semiconductor devices. In the Asia Pacific region, the Market is expanding rapidly, fueled by the penetration of smartphones and technological advancements. With the rise of connected devices and the need for effective testing, ATE plays a crucial role in ensuring the reliability and quality of semiconductor ICs. Companies like Aemulus Corporation are leading innovation in the field with products like the 5D MEMS micro-cantilever probe card for Wafer Acceptance Test (WAT). As R&D activities continue to drive innovation and testing efficiency, the ATE Market is poised for further growth across various verticals, including automotive, aerospace & defense, healthcare, and IT & telecommunication.

Moreover, the market is witnessing rapid growth driven by the automotive and semiconductor industries. With increasing demand for faster operations and miniaturization, especially in the Asia Pacific region, the market for System on Chip (SoC) testing is expanding. Semiconductor manufacturers face challenges such as design complexity and reliability testing, necessitating sophisticated ATE solutions. Developing nations are embracing ATE to enhance semiconductor manufacturing processes and meet consumer demands. The non-memory ATE segment is gaining traction, particularly with the proliferation of IoT devices and autonomous vehicles. ATE plays a crucial role in various sectors including defense, aerospace, healthcare, and IT. As industries prioritize product quality and time-to-market, ATE solutions ensure low testing costs and customer satisfaction, driving further adoption in verticals like BFSI, entertainment, e-commerce, and telecommunications.

The automotive industry in the Asia Pacific region is witnessing a surge in demand for Automated Test Equipment (ATE), particularly in the realm of manufacturing semiconductor ICs. With the proliferation of wireless networks, the automatic test equipment market is experiencing exponential growth, fueled by advancements in technology. Companies are focusing on enhancing their profit margins by diversifying their product portfolios and investing heavily in Research & Development (R&D). This investment aims to improve the physical characteristics of ATE systems, ensuring efficient testing of Devices Under Tests (DUT). As the automotive industry evolves, the Asia Pacific Automated Test Equipment Market is poised for significant expansion, driven by the need for reliable and high-performing testing solutions. Companies are prioritizing innovation and collaboration to stay competitive in this dynamic market landscape.

Automated Test Equipment Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5%
Market growth 2023-2027	USD 2,049.89 million
Market structure	Fragmented
YoY growth 2022-2023(%)	4.36
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 43%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advantest Corp., ADVINT LLC, Aemulus Holdings Bhd, Aimil Ltd., Anritsu Corp., Astronics Corp., Averna Technologies Inc., BAE Systems Plc, Chroma ATE Inc., Cobham Ltd., Cohu Inc., INNOTECH Corp., Keysight Technologies Inc., National Instruments Corp., Rohde and Schwarz GmbH and Co. KG, ROOS INSTRUMENTS Inc., SPEA Spa, Teradyne Inc., TESEC Inc., and The Marvin Group
Market dynamics	Parent market analysis, market growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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