The automated testing equipment market is expected to grow at a compound annual growth rate of 4.37% over the forecast period to reach a market size of US$4.723 billion in 2026 from US$3.501 billion in 2019.
Automatic test equipment (ATE), often known as automatic testing equipment, is computerized machinery that performs and evaluates functionality, performance, quality, and stress tests on electronic devices and systems using test instruments. ATE automates typically manual electronic test equipment and processes with minimum human input, as the name implies. Automated test equipment, or automated testing equipment, is another name for automatic test equipment. They both use the acronym ATE.
Electronic devices are tested by ATE in order to ensure the performance, functionality, and safety of individuals who are using such electronic equipment. Electronic devices that are examined by ATE are- ICs, PCBs, HDDs, electronic systems, and line-replaceable units that support the aircraft, spacecraft, and satellites.
The growing demand for Automated Test Equipment (ATE) by various end-user industries such as the automotive and semiconductor industry is anticipated to drive the growth of the market. An increase in the number of connected devices and consumer electronics, as well as a growing emphasis by companies on quality improvement and end-to-end testing solutions, are expected to drive the market further. The implementation of ATE in the semiconductor industry is found to improve the performance capability, speed of operation which ultimately, lowers the cost of semiconductor devices which is expected to positively affect the market growth.
The rise in adoption of System on Chip (SoC) and growing demand for consumer electronics due to the rising population is expected to be the primary driving forces in the ATE market. Advances in semiconductor manufacturing processes, as well as the expansion of wireless networks in developing countries, are expected to drive the automatic test equipment market in the coming years. Furthermore, significant technological advancements, as well as design complexity and the need for effective testing, are expected to benefit market expansion.
The rising adoption of automated testing devices in aerospace and defense is expected to drive the market during the forecast period. Changing regulatory environment rules are expected to be the major driving factor for market growth. New specifications for civil airborne software and hardware standards have been made by the government of U.S. – (RTCA/DO-178B is a software specification in Airborne Systems and Equipment Certification and RTCA/DO-254 Level C, Design Assurance Guidance is a specification for Airborne Electronic Hardware), military radios are increasingly being tested on the basis of these specifications.
In 2020, the system-on-chip (SoC) test system segment dominated more than 55 percent of the ATE market share due to its several high-end features such as precision measurements and testing capabilities, low-error margins provided by the SoC test systems. SoC test systems are built on a ‘block-by-block' architecture and are densely integrated with multiple components on a single chip. Integration of SoCs is a complex process that can result in significant error margins which increases the testing time because of which Market players are focusing and making efforts to develop technically advanced SoC test systems that can perform functions without any error possibility. For instance, Qorvo and National instruments have collaborated to test the 5G RF front end module for the deployment of 5G in mobile devices.
Consumer electronics is expected to hold the major revenue share in the ATE market, owing to the increasing adoption of semiconductor memory ICs and SoC chipsets in consumer electronics devices such as wearable electronic devices, smart speakers, smartphones, tablets, iPad, etc. Automated test equipment contributes to a shorter overall testing life cycle and increased production capacity in consumer electronics manufacturing facilities. Growing demand for back-end testing across consumer electronics manufacturing plants will have a positive impact on the growth of the market. Consumer electronics manufacturers are aggressively expanding their production plants to meet the growing demand of consumers.
The COVID-19 pandemic has had a negative impact on many markets, including the ATE market. Because of the strict lockdowns imposed due to the rapid spread of the virus, the ATE market had to suffer in terms of production. In the second quarter of 2020, the demand for ATE and related products has increased across the IT and Telecom segments. The ongoing trend of remote working has increased demand for connectivity and IT products, driving the demand for automated test equipment.
The increasing demand for Automated testing equipment has led to the entry of several new market players in the automated testing equipment market. The entry of these new players in a market where traditional players like Averna, ATS Automation Tooling Systems, Inc, and Teradyne, Inc. already exist, is expected to lead to further innovation in the Automated testing equipment market. Moreover, in order to further increase their clientele as well as increase their market share in the upcoming years, many of these market players have taken various strategic actions like partnerships and the development of novel solutions, which is expected to keep the market competitive and constantly evolving.
|Market size value in 2019||US$3.501 billion|
|Market size value in 2026||US$4.723 billion|
|Growth Rate||CAGR of 4.37% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Component, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Averna, ATS Automation Tooling Systems, Inc, Teradyne, Inc., MEL Systems and Services, Ltd., WEETECH GmbH, Chroma Systems Solutions, Inc., AMETEK Programmable Power, Automated Testing Solutions, Inc., National Instruments, Astronics Corporation|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the automated testing equipment market size by 2026?
A1. The automated testing equipment market is expected to reach a market size of US$4.723 billion in 2026.
Q2. What is the size of the global automated testing equipment market?
A2. Automated Testing Equipment Market was valued at US$3.501 billion in 2019.
Q3. What are the growth prospects for the automated testing equipment market?
A3. The global automated testing equipment market is expected to is projected to grow at a CAGR of 4.37% during the forecast period.
Q4. What factors are anticipated to drive the automated testing equipment market growth?
A4. The growing demand for automated testing equipment by various end-user industries such as the automotive and semiconductor industry is anticipated to drive the market growth.
Q5. How is the global automated testing equipment market segmented?
A5. The automated testing equipment market has been segmented by component, end-user industry, and geography.
ATS Automation Tooling Systems, Inc
MEL Systems and Services, Ltd.
Chroma Systems Solutions, Inc.
AMETEK Programmable Power
Automated Testing Solutions, Inc.
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