Automotive Test Equipment Market Snapshot (2022 to 2032)
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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Historic Market Outlook for Automotive Test Equipment
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.
What are the Various Factors Driving the Automotive Test Equipment Market?
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.
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Which Factors May Hinder the Automotive Test Equipment Market Growth?
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.
What is Regional Analysis of Automotive Test Equipment Market Share?
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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Market Competition
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.
In February 2020, Continental Builds New Plant for Advanced Driver Assistance Systems in the USA, Continental announced the construction of a new plant in New Braunfels in the USA state of Texas. The purpose of the new building is to expand its capacity for the production of radar sensors. Advanced driver assistance systems save lives. Continental is one of the world’s market leaders in this area.
In March 2020, Actia set up its vehicle inspection center in the Philippines and Laos, with the test seat for hefty good vehicles, light vehicles, and bikes. In the Philippines, the initial 40 inspection centers were opened under the name QWIK. Then again, in Laos, Actia set up two inspection lines for light and substantial products vehicles.
Scope of the Report
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
Product Type
Vehicle Type
Technology
Application
Region
Key Regions Covered
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East & Africa
Key Companies Profiled
Delphi Technologies
Robert Bosch GmbH
Continental AG
DENSO
ABB Ltd.
Honeywell
Siemens
Softing
Horiba
SGS
Vector
Customization & Pricing
Available upon Request
Key Segments Profiled in the Automotive Test Equipment Market Report
By Product Type, Automotive Test Equipment Market is segmented as:
Chassis Dynamometer
Engine Dynamometer
Vehicle Emission Test System
Wheel Alignment Tester
Fuel Injection Pump Tester
Transmission Dynamometer
By Vehicle Type, Automotive Test Equipment Market is segmented as:
Passenger Cars
Commercial Vehicles
By Technology, Automotive Test Equipment Market is segmented as:
ADAS Testing
ECU Testing
Data Logger System
Simulation Testing
EV Testing
By Application, Automotive Test Equipment Market is segmented as:
Mobile Device Based Equipment
PC/Laptop Based Equipment
Others
By Region, Automotive Test Equipment Market is segmented as:
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East & Africa
Frequently Asked Questions
What was the value of the Automotive Test Equipment market in 2021?
In 2021, the value of the Automotive Test Equipment market reached over US$ 3.04 Billion.
At what rate is the Automotive Test Equipment market projected to expand during the forecast period?
During the forecast period, the Automotive Test Equipment market is estimated to expand at a CAGR of 4.3% from 2022 to 2032.
By 2032, what will the value of the Automotive Test Equipment market?
The Automotive Test Equipment market is projected to reach US$ 4.72 Billion by the end of 2032.
Which region is set to lead the Automotive Test Equipment market?
East Asia is projected to lead the Automotive Test Equipment market in the forecast period.
Which are the top players in the Automotive Test Equipment market?
The key players operating in the Automotive Test Equipment market are Robert Bosch GmbH, Continental AG, Delphi Technologies, and ABB Ltd.
