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The Automated Test Equipment (ATE) Market size is estimated to grow at a CAGR of 5% between 2022 and 2027. The size of the market is forecast to increase by USD 2,049.89 million. 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.
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.
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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.
Augmented production of electronic goods is a major factor driving the Automated Test Equipment Market growth. An increase in the exports of electronic goods has been recorded in China, Japan, and Singapore. Mostly moderately-priced and low-priced electronic equipment is exported by APAC. Furthermore, the strong growth in the semiconductor and electronics industry in APAC will drive the growth of the market in the region. The increasing sales of smartphones are the highest motivation factor in this segment. China, Hong Kong, Vietnam, Singapore, and Taiwan are the major producers of smartphones, and the growing smartphone market will foster the sales of automated test equipment in this region.
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 for automated test equipment during the forecast period.
Automotive wireless technologies are another factor supporting the Automated Test Equipment 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 for automated test equipment.
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 the demand for automated test equipment in the automobile sector during the forecast period.
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 the raw material 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.
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 Automated Test Equipment Market Customer Landscape
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:
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.
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 1,751.73 million in 2017 and continue 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.
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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.
In 2020, the COVID-19 pandemic significantly impacted the growth of the ATE market in the region. However, the telecommunication industry gained high prominence even during the pandemic due to the increased number of Internet users, penetration of 5G, and the adoption of cloud and hybrid infrastructure services, along with significant government initiatives. For instance, during the COVID-19 pandemic, most of the demand for colocation services in APAC was from cloud-service providers that host their data in colocation data centers, which spurred investments in data centers. Such factors will fuel the growth of the global automated test equipment (ATE) market in APAC during the forecast period.
The Automated Test Equipment 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.
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 inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our 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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