Automated Test Equipment Market Size By Type (Memory Integrated Circuit (IC) Test System, Linear & Discrete Test System, System-on-Chip [SoC] Test System), By Application (Consumer Electronics, Automotive, Aerospace & Defense, Information & Communication

Automated Test Equipment Market Size By Type (Memory Integrated Circuit (IC) Test System, Linear & Discrete Test System, System-on-Chip [SoC] Test System), By Application (Consumer Electronics, Automotive, Aerospace & Defense, Information & Communication Technology (ICT)), COVID-19 Impact Analysis, Application Potential, Competitive Market Share & Forecast, 2023 - 2032

Automated Test Equipment Market is anticipated to showcase massive growth through 2032, owing to the rising initiatives undertaken by several national governments to ramp up semiconductor manufacturing across developed economies, such as the U.S., China, Japan, and Taiwan. The rising use of automated test equipment in industries including aerospace and defense, semiconductor fabrication, automotive and transportation, consumer electronics, telecommunications, and medical technology is further slated to drive the market growth by 2032 end.

Besides, the global industry is likely to foresee hinderance in the coming years due to high costs associated with purchasing and maintaining automated test equipment. However, increasing use of such equipment in energy-efficient integrated circuits is slated to offer several growth opportunities to the market.

The prominent players operating in the automated test equipment industry are undertaking several strategic initiatives such as partnerships, mergers, acquisitions, and unveiling new products to gain a competitive edge in the market. For instance, in 2021, Keysight Technologies, one of the leading technology companies, acquired SCALABLE Network Technologies. The recent move would enable the clients to prototype, model, and assess multi-domain applications and networks via software simulation, thus reducing the risks during development and improving time to market.

Overall, the automated test equipment market is segmented in terms of type, application, and region.

Considering the type, the memory IC test system held over 25% market share in 2022 and is slated to grow exponentially through 2032. The growth can be ascribed to the burgeoning demand for consumer electronic goods such as smartphones, tablets, laptops, gaming consoles, hearables, wearables, digital cameras, and VR and AR devices, along with other embedded devices. Moreover, the ability of memory IC systems to perform automatic search on microprocessors and digital/analog ICs, loopback tests, and algorithm check functions, would further boost the market scenario.

In terms of application, the automotive segment is slated to exhibit over 12% CAGR between 2023-2032. The surging adoption can be credited to the robust digitization and deployment of numerous electronic components in automotive systems. Automotive electronics are increasingly gaining traction as they act as a key component for the cost of an automobile, which is further estimated to pave the way for segmental expansion.

Regionally, the North America automated test equipment market was valued at over USD 800 million in 2022 and is poised to demonstrate substantial expansion through 2032. The growth can be attributed to the investments made by the government to fast-track manufacturing, which have propelled the adoption of automation systems, conveyors, and collaborative and industrial robots in the region. In addition, several leading players are engaging in strategic initiatives to strengthen their foothold in the region, thereby positively influencing the industry's growth in North America by 2032.