The automated test equipment market size is projected to reach US$ 10.6 billion by 2030 from US$ 6.1 billion in 2022. The market is expected to register a CAGR of 7.2% during 2022–2030. Increasing focus on cost-effective testing solutions is likely to remain a key trend in the market.
The expansion of the semiconductor industry is driving the automated test equipment market. The global semiconductor market is expected to upsurge at a yearly growth rate of 11.8% in 2024, reaching US$ 515 billion, according to the latest release from World Semiconductor Trade Statistics. Automotive manufacturers highly adopt semiconductors in their manufacturing and assembling processes. However, noteworthy growth has been observed in the automotive industry’s semiconductor demand due to advancements in automotive electronics, which are fueling the automated test equipment market growth. Furthermore, continuous demand for semiconductors, especially for 3D NAND flash memory and DRAM, in the IT & telecom industry encourages memory semiconductor manufacturers to invest and increase their production capacity.
Technological advancement in the consumer electronic industry, coupled with the introduction of innovative features such as face recognition in mobile phones by Apple Computer, is driving the automated test equipment market growth. The face recognition feature is integrated into many applications such as other mobile phones, access control, automotive, and unmanned vehicles, increasing the demand for various product components in the coming years. The shortage of materials may cause difficulties in fulfilling consumer demand for electronics. This further encourages manufacturers to make significant investments in expanding production, creating demand for related test instruments by propelling the automation test equipment market in the coming years. However, increasing complexity in consumer electronics design and growing automotive demand are projected to fuel the demand for semiconductor-automated test equipment worldwide.
Automated test equipment (ATE), also known as automatic testing equipment, is a computerized machinery that is used to test the performance, functional, qualification, and safety requirements of electronic systems, subsystems, and devices. The ATE system allows manufacturers to validate and verify various electronics integrated into automotive products. The system helps manufacturers to reduce human intervention involved in manual testing by accelerating consistently running cycles of tests in the product development process. Protect testing reduces minimal chances of human errors by increasing the ability for troubleshooting. Organizations use automated test equipment to deliver quality products to customers.
Growing demand for semiconductors among various industries such as consumer electronics, automotive, healthcare, and IT & telecom are driving the automated test equipment market. The automated test equipment market is a highly concentrated market, with only a small chunk of leading semiconductor manufacturers, testing players, and foundries accounting for a larger share of total market revenue in the semiconductor and component testing industry. The market is likely to become even more intense in the near future due to growing merger and acquisition activities. Big players in the market are planning to acquire smaller semiconductor participants for the progression of their business.
The consumer electronics industry is evolving at an exponential pace. The rising demand from consumers has encouraged suppliers to provide differentiated products and be the first movers in the market. A tough competition with peers in the consumer electronics industry has resulted in price wars, leading to decreasing profitability for the manufacturers. As a result of these factors, manufacturers strive continuously for innovations in their product offerings. More manufacturers have been curious about becoming the pioneers of new products in the market. The analog-to-digital conversion brought many new standards in audio and video, which improved the quality and affordability of the multimedia digital experience.
The rise of broadband has made accessing media easy and rewarding for consumers due to the rich quality enabled by the digital revolution. The proliferation of smart products is driving the need for engineers to improve electronic product design and focus on delivering lower cost, lower power, and higher performance through the integration of discrete functions.
The ATE market is changing rapidly as a result of Industry 4.0 concepts like artificial intelligence (AI) and the Internet of Things (IoT). ATE systems are being equipped with smart manufacturing concepts, which allow predictive maintenance, real-time monitoring, and data analytics. This enables manufacturers to decrease downtime, increase efficiency, and optimize their testing procedures. ATE systems are growing increasingly intelligent and networked, offering useful information about product quality and production procedures. The market will likely see more innovation as smart ATE solutions become more in demand as the industry adopts Industry 4.0.
Key segments that contributed to the derivation of the automated test equipment market analysis are type, component and end-user
The geographic scope of the automated test equipment market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
APAC is expected to register sturdy growth in the global automated test equipment market due to the presence of large semiconductor manufacturing hub countries, including Taiwan, China, Vietnam, and South Korea. These countries are engaged in the manufacturing of large-volume semiconductors used in numerous industries, including automotive, healthcare, IT, telecom, and consumer electronics. For instance, according to the Semiconductor Industry Association (SIA), the sale of semiconductors grew by 3.4% in September 2023 compared to August 2023 in the APAC. Rising adoption of future technologies such as advanced Design-For-Test (DFT), fine-pitch probe cards, adaptive testing, faster mixed-signal testers, and design standards are expected to drive market growth. Increasing government initiatives and support by countries such as China, Thailand, Taiwan, Singapore, Malaysia, and Indonesia for developing and advancing manufacturing processes is expected to boost the automated test equipment market during the forecast period.
Governments of various countries in the Middle East & Africa, and South America are implementing various policies & regulations related to the adoption of advanced technologies, and growing manufacturing industries are driving the automated test equipment market. The market in the Middle East & Africa and South America is expected to expand during the forecast period due to the availability of inexpensive labor. The expansion of the automotive and consumer electronics industries is also creating opportunities for the automated test equipment market growth.
The regional trends and factors influencing the Automated Test Equipment Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automated Test Equipment Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 6.1 Billion |
| Market Size by 2030 | US$ 10.6 Billion |
| Global CAGR (2022 - 2030) | 7.2% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Automated Test Equipment Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Automated Test Equipment Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The automated test equipment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the automated test equipment market are listed below:
The “Automated Test Equipment Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
The List of Companies - Automated Test Equipment Market
The automated test equipment market size is projected to reach US$ 10.6 billion by 2030.
North America is expected to dominate the automated test equipment market with the highest market share in 2022.
The leading players operating in the automated test equipment market are ADVANTEST CORPORATION, Anritsu, Astronics Corporation, Averna, Chroma ATE Inc., EXICON, NATIONAL INSTRUMENTS CORP., SPEA S.p.A, Teradyne Inc., and Test Research, Inc.
Increasing focus on cost-effective testing solutions is anticipated to play a significant role in the global automated test equipment market in the coming years.
The global automated test equipment market is expected to grow at a CAGR of 7.2% during the forecast period 2023 - 2030.
Rising demand for robust testing methods and increasing adoption of consumer electronics are the major factors driving the automated test equipment market.