Automated Test Equipment Market Forecasts to 2028 – Global Analysis By Product (Memory ATE, Discrete ATE and Other Products), Type (Printed Circuit Board (PCB) Testing, Hard Disk Drive Testing and Other Types), Component (Handlers/Probers, Industrial PCs

Automated Test Equipment Market Forecasts to 2028 – Global Analysis By Product (Memory ATE, Discrete ATE and Other Products), Type (Printed Circuit Board (PCB) Testing, Hard Disk Drive Testing and Other Types), Component (Handlers/Probers, Industrial PCs and Other Components), End User (Consumer Electronics, Aerospace & Defence and Other End Users), and Geography

According to Stratistics MRC, the Global Automated Test Equipment Market is accounted for $7.61 billion in 2022 and is expected to reach $10.38 billion by 2028 growing at a CAGR of 5.3% during the forecast period. Automated test equipment is designed to perform testing on various gadgets. It is a computer-controlled device used to evaluate the performance and capabilities of gadgets. Using automated information technology and control systems, this equipment conducts tests to measure and assess devices under test (DUT). Automated test equipment's main purpose is to verify the DUT's operation and look for flaws. Utilizing automated test equipment reduces manufacturing costs and helps stop defective products from reaching the market. Automated test equipment is used, among other things, in the production of electronic components, wireless communication, and radar. Testing of semiconductors, avionics, hardware, software, and electronics are other uses for automated test equipment.

According to India Brand Equity Foundation, an Indian government export promotion agency, the consumer electronics industry is expected to reach $21.18 billion by 2025.

Market Dynamics:

Driver:

Growth in Consumer Electronics

The consumer electronics sector had a significant growth when revenue was taken into account. The expansion of the consumer electronics industry is being driven by an increase in smartphone sales. The demand for smartphones is expected to increase in the future years as a result of technical advancements and the rollout of 5G technology. Demand for ATE goods has grown as a result of rising customer demand for products with more features, greater flexibility, and higher quality at lower prices. The typical mobile phone user updates their model almost every two years to benefit from new features. However, problems like lower battery life have proliferated as gadget capabilities have improved and their sizes have dropped. Therefore, it is anticipated that the application of test solutions and testing techniques will continue to develop in the consumer electronics industry.

Restraint:

Growing competition among players

Over the past few years, a lot of ATE manufacturers have been involved in mergers and acquisitions. Currently market is dominated by Teradyne Inc. and Advantest Corporation. Many smaller companies have made a name for themselves in the industry. The market ecosystem was altered with the arrival of National Instruments and Intel Corporation into the testing business (limited to semiconductor testing). To stay up with technological advances, many organisations are focusing on updating their testing assembly lines. Existing ATE enterprises may be threatened by heightened competition and the arrival of new ATE businesses. Businesses choose to buy ATEs rather than construct their own since they offer a substantial return on investment.

Opportunity:

Emerging innovations in the autonomous vehicles

The demand of autonomous vehicles has increased significantly. Deep Reinforcement Learning (DRL) and Simultaneous Localization and Mapping (SLAM), two recent advancements in autonomous cars, have had a significant impact on the ATE sector. Recent developments in the field of autonomous vehicles have led to frequent testing of these vehicles by well-known manufacturers. Due to the numerous electrical sensors and circuitry that autonomous vehicles contain, substantial testing is required prior to their commercialization. The failure rate in autonomous vehicles must be kept to a minimum because failure can have devastating repercussions for both the end-user and the reputation of the business. Testing is now a crucial component of the launch, which is expected to bring about prosperous chances for the ATE industry.

Threat:

High cost associated with testers and testing components

The high cost of automated test equipment systems prevents many manufacturers from implementing them. Many start-ups in the semiconductor business cannot afford the testers and testing equipment, such as handlers and probers. The price of the automated test system handler, which is used to test memory, is more than the price of the memory tester. The handlers utilised are quite expensive, even when using automated test equipment for MEMS and sensor testing. As a result, not every manufacturer of semiconductor devices can employ automated test equipment testing. As a result, certain manufacturers favour different testing techniques, like manual testing. This has limited the use of automated test equipment systems and restrained the market's overall growth for automated test equipment.

Covid-19 Impact

The COVID-19 pandemic had a significant effect on the world's healthcare system, social structure, and economy. Both during the epidemic and after it ended, technological advancements were essential in making it possible for digital health services to be widely used and accessible. In addition to the growing desire for telemedicine, 5G-enabled e-health solutions and Internet of Health Things (IoHT) apps aimed at linking patients to healthcare facilities have positively impacted the development of the business.

The system-on-chip (SoC) test system segment is expected to be the largest during the forecast period

The system-on-chip (SoC) test system segment is estimated to have a lucrative growth, due to it offers high-end characteristics such as high-precision measurements, parallel test options, and low tolerances compared to semi-automatic test systems, the system-on-chip (SoC) test system sector commands a substantial market share. The SoC test system is closely integrated with several components on a single chip and is built with a ""block-by-block"" architecture. The fault tolerance and debugging capabilities of the system-on-chip (SoC) test system can be greatly increased, which accelerates the market growth of automated test equipment.

The aerospace and defense segment is expected to have the highest CAGR during the forecast period

The aerospace and defense segment is anticipated to witness the fastest CAGR growth during the forecast period, due to rising government spending on defence in the area, the aerospace industry is seeing a boom in the development of complicated equipment, which accounts for the segment's substantial market share. This will enable technology to advance quickly, innovating to enhance the effectiveness of current instruments and further encompassing new scopes that serve a wide variety of characteristics, which accelerates the expansion of the market for automated test equipment.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the considerable presence of the semiconductor industries in that region. The largest regional revenue share is anticipated to go to China and Taiwan. Future innovations that are anticipated to drastically alter market dynamics include adaptive testing, enhanced Design-For-Test (DFT), quicker mixed-signal testers, fine-pitch probe cards, and design standards, among others. Growth is also anticipated to be boosted by an increase in government initiatives by nations like China, Indonesia, Malaysia, Singapore, Thailand, and Taiwan to develop innovative manufacturing techniques.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to wearable healthcare gadgets are becoming more and more popular, thanks to their features like small size, high connection, and performance. Additionally, it is anticipated that the growing interest among healthcare device manufacturers in creating wirelessly connected small medical devices will increase the demand for power semiconductors, sensors, PCBs, and other components, which will propel regional industry growth over the anticipated period.

Key players in the market

Some of the key players profiled in the Automated Test Equipment Market include Astronics Corporation, Chroma ATE Inc., Aemulus Holdings Bhd, LTX-Credence Corporation (Xcerra Corporation), Teradyne Inc., Advantest Corporation, Aeroflex Inc., Tesec Corporation, Marvin Test Solutions Inc., Danaher Corporation, STAr Technologies Inc., Roos Instruments, Inc., Cobham Plc, National Instrument Corporation, Agilent Technologies Inc. and Lear Corporation.

Key Developments:

In November 2022, Lear Corporation, one of the global leaders in seating and e-systems technology, announced the strategic acquisition of InTouch Automation, a supplier of Industry 4.0 technologies and complex automated testing equipment utilized in manufacturing automobile seats.

In May 2022, National Instruments Corporation (NI) released its newest Battery Test System (BTS) for testing electric vehicles (EVs). The solution is intended to assist Tier 1 suppliers and automakers in adapting to the complexity and size of EV battery testing by enhancing customization, automation, and data linkage across the whole battery test process to assure performance and expedite time to market.

Products Covered:
• Memory ATE
• Discrete ATE
• Non-Memory ATE
• Mixed Signal
• Flash Memory
• Digital ATE
• Dynamic Random Access Memory (DRAM)
• Static Random Access Memory (SRAM)
• Other Products

Types Covered:
• Printed Circuit Board (PCB) Testing
• Hard Disk Drive Testing
• Integrated Circuit (IC) Testing
• Modules
• System-on-Chip (SOC) Test System
• Logic Testing
• Other Types

Components Covered:
• Handlers/Probers
• Industrial PCs
• Mass Interconnects
• Other Components

End Users Covered:
• Consumer Electronics
• Aerospace & Defence
• Medical
• Semiconductor Fabrication
• Automotive & Transportation
• IT & Telecommunications
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements