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According to FMI, the Automotive Test Equipment market is estimated to be valued at US$ 3.1 Billion in 2022 and is projected to increase at a CAGR of 4.3% in the forecast period from 2022 to 2032.
Attributes | Details |
---|---|
Market Size (2021) | US$ 3.04 Billion |
Market Size 2022 | US$ 3.1 Billion |
Market Size 2032 | US$ 4.72 Billion |
Value CAGR (2022 to 2032) | 4.3% |
East Asia leads the market, followed by North America and Europe. Due to advancements in technology, the East Asia region is expected to witness high growth in the near future due to increasing domestic demand for automobiles. With growing concerns over the safety and fuel efficiency of the vehicle and the increasing incorporation of industry standards and inspection of vehicles, the passenger vehicle segment is driving growth in the market.
The global automotive industry is highly competitive and developing. To survive in the market for a long period of time, the automotive industry needs to be constantly innovative in terms of quality, durability, etc. Also, the manufacturers of vehicles need to ensure that the systems and components of their automobiles function properly throughout their working life. With the growing innovation in the automotive industry, the demand for test equipment in the automotive industry will grow throughout the forecasted period. A new forecast by FMI analysis estimates that automotive test equipment sales will increase from 2022 to 2032 and is anticipated to create a growth opportunity of US$ 1.62 Billion.
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The analysis of Automotive Test Equipment demand from 2017 to 2021 showed a historical growth rate of less than 3.5% CAGR, with the general expansion of automobile sales, and some industry standards on Automobile inspection driving growth as consumers increased spending amid rising disposable incomes. Initial recessionary downturns brought on by the COVID-19 pandemic in the form of lower Automotive Test Equipment sales, store closures, and service station interruptions momentarily halted growth hopes. However, since infection curves have flattened from 2022, industrial activity in automotive markets has restarted. The implementation of stringent laws by various governments regarding the emission of harmful gases is leading to the rise in requirements for various tests of automotive parts and components, aiding the growth of automotive test equipment. As a result, the automotive test equipment demand projection predicts a CAGR of 4.3% by 2032.
The increasing demand for electric vehicles is expected to put pressure on the automotive test equipment market during the anticipated period. With the growing rate of innovations in the automotive industry, the test engineers have to react accordingly, to offer the best testing solutions accordingly to the fast market changes, new launches, and user-friendly testing solutions that can be implemented easily for the highly advanced and new technological changes. Various environmental conditions, such as wind, humidity, cold, dampness, salt, water, rainwater, heat, and high temperature, affect the quality and appearance of automotive products. These major factors need to be tested periodically, and they act as a driver for the automotive testing equipment market.
The environmental testing standards and highly standardized testing equipment help to authenticate the quality and fitness of automotive components. The range of automotive testing equipment helps create realistic working conditions with different environmental factors.
The automobile sector faces a difficult choice between cost-cutting and technological innovation. Advanced test instruments, which are more expensive when compared to regular test equipment, are used to test electric or hybrid automobiles. Any technology must first become widely used for producers to obtain economies of scale. Automobile manufacturers must provide their products at competitive prices since entry-level passenger automobiles are in demand in developing countries. In this case, providing expensive test equipment can act as a roadblock. The cost savings from generating more widely used products must be weighed against the expense of constantly inventing new products. The difficulty lies in creating vehicle test tools that are both efficient and economical.
Moreover, maintaining an equilibrium between test equipment's high cost and performance acts as a restraint for the automotive test equipment market.
The East Asia region is anticipated to lead the automotive test equipment market during the forecast period of 2022 to 2032. The East Asia region is anticipated to have the biggest market share, 35% by 2032. The area acts as the industry's hub for the vehicle sector. An increase in consumer buying power is fuelling the region's demand for automobiles. Due to the low cost of production and the availability of inexpensive labor, some OEMs have also either developed their own production facilities or collaborated with domestic vehicle makers. Due to continued advancements in safety systems and technology, most suppliers of automobile test equipment are headquartered in East Asia, which is predicted to experience the biggest growth by 2032.
Additionally, the Europe region is expected to grow rapidly at a CAGR of 4.5% during the forecast period from 2022 to 2032. There are a number of reputable auto manufacturers in the region. Due to the acceptance of safety certification, regional manufacturers are also actively engaged in offering superior safety features that are tested in accordance with several safety requirements.
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Key players operating in the Automotive Test Equipment market include Robert Bosch GmbH, Continental AG, Delphi Technologies, Siemens, Honeywell, and ABB.
Major Automotive Test Equipment market players are focusing on expanding their customer base through various strategies such as the expansion of their product portfolio through new product launches and innovations. Key players are also adopting advanced technologies to improve their safety features. Automotive Test Equipment manufacturers are also relying on tie-ups with major original equipment manufacturers and targeted mergers & collaborations to generate lucrative revenues.
Attribute | Details |
---|---|
Growth Rate | CAGR of 4.3% from 2022 to 2032 |
Base Year for Estimation | 2021 |
Historical Data | 2017 to 2021 |
Forecast Period | 2022 to 2032 |
Quantitative Units | Revenue in USD Million, Volume in Units, and CAGR from 2022 to 2032 |
Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
Segments Covered |
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Key Regions Covered |
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Key Companies Profiled |
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Customization & Pricing | Available upon Request |
In 2021, the value of the Automotive Test Equipment market reached over US$ 3.04 Billion.
During the forecast period, the Automotive Test Equipment market is estimated to expand at a CAGR of 4.3% from 2022 to 2032.
The Automotive Test Equipment market is projected to reach US$ 4.72 Billion by the end of 2032.
East Asia is projected to lead the Automotive Test Equipment market in the forecast period.
The key players operating in the Automotive Test Equipment market are Robert Bosch GmbH, Continental AG, Delphi Technologies, and ABB Ltd.
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