The automated test equipment market is anticipated to reach US $7.75 billion by 2025 from US$ 5.06 billion in 2017 thereby registering a moderate CAGR growth rate of 5.5% during the forecast period.
The automated test equipment (ATE) market used for the testing of semiconductor and component is a highly concentrated market, with only small chunk of leading semiconductor manufacturers, foundries and testing players accounting for a hefty share of total market revenue in the semiconductor and component testing industry. It is expected that the market will become even more intense in the near future with big players in the market acquiring smaller semiconductor market participants, and progression in corporate restructuring of business. Therefore, to sustain and grow in the industry, companies will have to obtain or increase their orders for customers doing large volume production. As a result, the automated test equipment market to witness an attractive growth rate during the coming years and provide numerous profitable opportunities for the market players in the forecast period. The Rest of World (RoW) automated test equipment market region is expected to witness a CAGR growth rate of 2.3% in the coming years.
Exhibit: Automated test equipment Market by Region
Surge in volume of consumer electronic devices to propel the demand for automated testing equipment
Today's smart products contain complex electronic systems that require flawless operation in the real world. Device miniaturization, support for multiple wireless technologies, faster data rates, and longer battery life, demand rigorous analysis. Additionally, demand for numerous feature integrations onto a single device have led to complex circuit board designs of these electronics. As an example, a smartphone today includes features such as camera, calling function, torch, storage drives, and connectivity with other devices, compatible ports for connections, a multimedia player, and many other functions etc. Similarly, other consumer electronic devices have been improving on similar lines propelling the semiconductor manufacturers for more miniaturization of the chips and integration of more functionalities. Moreover, the increase in demand for ensuring superior product quality the product undergoes substantial technical and product quality inspection during the value chain and can be challenging through convention equipment testing approaches. Subsequently, driving the growth for automated test equipment market in the coming years.
Emerging popularity of IoT and growing demand for various electronic components & devices to boost the demand of automated testing equipment market
The advent of IoT has enabled each device to be connected over the internet and the rising adoptions globally would result in more than billions of devices connected over the internet. Also, validating to the above mentioned point is the fact that the data traffic rate on a global level, has grown at an annual rate of more than 65% over the last five years. Also, between 2018 and 2023, the data traffic is anticipated to grow at a compound annual growth rate of close to 40 percent. This exponential growth in data traffic over the internet is out rightly attributed to the growing penetration of smartphones and other consumer electronic devices that can be connected over the internet as a result of the growing popularity of IoT. As a result, this is anticipated to boost the production of numerous electronic devices, components and products in the coming years and subsequently boosting the demand for efficient and automated testing equipment. Thus, the automated test equipment market is expected to provide numerous profitable opportunities for the market players in the coming years.
In the global automated test equipment market for the automotive industry, automated tests are performed in areas including testing of radio & infotainment system, HVAC dashboard & display, automotive ECU, active wheel speed sensors, active wheel speed sensors, Automatic gearbox controllers, body controllers, active safety controllers, and ABS among others. Further, there is high growth in the percentage of electronic devices in passenger cars, as well as continuous addition of new applications. For instance, mechatronic or electronic components are replacing mechanical components such as steer-by-wire systems, radar-based safety systems for collision evasion, and new telematics systems enabling complete traffic flow control. This further creates a demand for appropriate testing requirements to ensure proper function of devices. Thus, propelling the growth of automated test equipment market. Also, rise in sales of electric vehicles (EVs) and hybrid electric vehicles (HEVs) has bolster the demand for automated test equipment market by the manufacturers. Thus, the automotive industry for automated test equipment market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
Germany being the one of the leading producer of automobiles in the world and several major car manufacturing companies are located in the country including Volkswagen, BMW AG, Audi and others. Germany produces over 6 Mn vehicles every year, which includes both passenger cars and commercial vehicles. Approximately 70% of most of the premium brands vehicles across the globe are manufactured by German companies. Also, the country has a recognized medical device manufacturing industry, as well as industrial electronics manufacturing. The presence of these industries in Germany is expected to boost the demand for automated test equipment market. Also, some of the companies located in Germany produce semiconductor manufacturing equipment but their share in global IC manufacturing equipment sales is less than 3%. The Germany automated test equipment market is expected to grow with a attractive CAGR growth rate of 3.4% from 2019 to 2027.
Exhibit: Automated Test Equipment Market by Automotive
The market initiative and new development was observed as the most adopted strategy in global automated test equipment market. Few of the recent strategies by some of the players automated test equipment market landscape are listed below-
2018: Advantest Corporation launched T5503HS2 memory tester. This new system is the industry's most productive test solution for the fastest memory devices as well as next-generation, super-high-speed DRAMs.
2018: Anritsu Corporation Released PCI Express® Test Solution in Collaboration with Granite River Lab and Teledyne LeCroy. This product enables connection of customers' oscilloscopes with the MP1900A by supporting real-time oscilloscopes from the three main manufacturers, permitting automation of complex receiver tests required for evaluating devices in accordance with the PCI Express standards.
2018: Advantest Corporation opened a new sales office in Kumamoto Prefecture, Japan. Thus, this new office enables Advantest to provide even more prompt and comprehensive support to its customers in the region.
GLOBAL AUTOMATED TEST EQUIPMENT - MARKET SEGMENTATIONAutomated Test Equipment Market - By Types
Automated Test Equipment Market - By Component
Automated Test Equipment Market - By End-User
Automated Test Equipment Market - By Geography
Automated Test Equipment Market - Company Profiles
The List of Companies