Automotive Test Equipment Market Outlook 2031
The global automotive test equipment market size was valued at around USD 3.17 billion in 2022 and is estimated to reach USD 4.53 billion by 2031, expanding at a CAGR of around 4.05% during the forecast period, 2023 - 2031. The growth of the market is attributed to the rising demand for safety features in automobiles and the increasing integration of electronic components in automobiles.
Test equipment and testing are key components of any design, development, production, and maintenance of electronics and electrical products. Electronics and electrical devices or equipment can develop failures or some working problems. Test equipment aids in discovering problems in the electronics to help consumers correct them.
Automotive testing placed whole vehicles, their components, and systems through virtual and real-life assessments. These testing and tests ensure that vehicles are safe, reliable, and follow the security and safety regulations. All automotive manufacturers are required to adhere to required global automotive safety regulations.
Automotive testing covers a wide range of automobile vehicles such as emission testing and other components. Automotive testing and test equipment offer several benefits such as ensuring compliance with relevant global overall safety regulations. Test equipment aid in discovering faults development phase of automobiles that facilitates automobile manufacturers to avoid expensive product recalls.
These equipment aids in developing innovative automated mobility technologies to ensure safety from the early stages of automobile development. Test equipment facilitate testing various solutions for different kinds of automobile systems and components. Wide adoption of test equipment help automobile brands to improve their reputation as quality vehicle providers.
COVID-19 Impact
The COVID-19 pandemic situation affected the global automotive test equipment market negatively. The lockdown, social distancing policies, travel restrictions, and other stringent government regulations regarding the pandemic decreased the demand for automobiles affecting the automotive industry negatively.
Key automotive test equipment manufacturers such as Continental AG, Robert Bosch GmbH, and others announced the suspension of the production of test equipment, as the demand for the equipment decreased and the supply chain was broken. These key manufacturers halted production for employee safety in light of the pandemic situation.
The global automotive test equipment market is expected to recover in the coming years, as the stringent restrictions and regulations regarding the pandemic situation are getting slacked.
Automotive Test Equipment Market Dynamics
The global automotive test equipment market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive test equipment market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.
Major Trends:
Wide adoption of electric vehicles is one of the key market trends
Consumers are increasingly aware of carbon emissions and their negative effects on the environment. This factor propels the demand for electric vehicles and drives automobile companies to manufacture environmental-friendly electric vehicles. Manufacturers adopt advanced technologies such as various test equipment to ensure driver safety. Increasing demand for electric vehicles boosts the global automotive test equipment market.
Key Drivers:
Increasing adoption of stringent carbon emission norms drives the global automotive test equipment market
Governments across the globe have formulated stringent policies and regulations to prevent the negative impact of carbon emissions on the environment. Vehicles need to follow emission standards. Automotive test equipment such as vehicle emission test systems are used to see whether vehicles are manufactured according to the standard requirement. Increasing adoption of stringent carbon emission norms boosts the global automotive test equipment market.
Existing Challenges:
High costs hamper the global automotive test equipment market growth
Advanced and innovative technologies used in the automotive industry such as automotive test equipment are expensive to design, develop, manufacture, and adopt. Technologies used for hybrid or electric vehicles are considered to be more expensive than those used in conventional fuel cars. Several automobile manufacturers are coming up with competitive prices, which creates competition in the market. These are the factors, which restrain the global automotive test equipment market
Lack of investment in research and development activities restrains the global automotive test equipment market growth
Automotive test equipment manufacturers need to adhere to several stringent emission norms and regulations that are mandatory across the globe. Many manufacturers outsource the testing of their products, which increases automobile prices affecting automobile sales negatively. Lack of research and development facilities and investments hamper the global automotive test equipment market growth.
Emerging Opportunities:
Increasing demand for onboard diagnostic tools offers growth opportunities
The demand for onboard diagnostic tools is increasing, due to the self-diagnostic abilities of these tools. These tools provide complete control over the vehicle engine including detecting vehicle faults, emission control, troubleshooting, engine status, and others.
A vast number of consumers prefer smartphones and other wireless devices to carry out functions of the onboard diagnostic tools, which propels automotive test equipment manufacturers to develop innovative applications that work with onboard diagnostic tool systems. Growing demand for onboard diagnostic tools offers growth opportunities to market players.
Scope of The Automotive Test Equipment Market Report
The report on the global automotive test equipment market includes a detailed analysis of the market trends, market segments, market share, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Automotive Test Equipment Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Engine Dynamometer, Wheel Alignment Tester, Chassis Dynamometer, Fuel Injection Pump Tester, and Vehicle Emission Test System), Vehicle Types (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles), Applications (Smartphones-based Equipment, Computer & Laptop-based Equipment, Handheld Scanning Equipment, and Others), and End-users (OEM Assembly Plants, Authorized Service Centers, OEM Research & Development Centers, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Robert Bosch GmbH; BorgWarner Inc. (Delphi Technologies); Honeywell International Inc.; Aptiv; Siemens; Horiba, Ltd.; ABB; ACTIA Group; SGS SA; Sierra Instruments, Inc.; Softing AG; SPACE S.R.L.; AVL List GmbH; Moog Inc.; Freese Enterprises Inc.; ADVANTEST CORPORATION; Continental AG; Nanoscale Integration and Modeling (NIMO) Group, ASU (PTM Electronics); DENSO CORPORATION; TÜV SÜD; Vector Informatik GmbH; Millbrook Proving Ground; Teradyne Inc.; Anritsu Corporation; PCE Instruments; Fluke Corporation; Alfamation S.p.A.; ETAS; Snap-on Incorporated; TASI Group; and Others
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Automotive Test Equipment Market Segment Insights
Chassis dynamometer segment to witness rapid growth
On the basis of types, the global automotive test equipment market is divided into engine dynamometer, wheel alignment tester, chassis dynamometer, fuel injection pump tester, and vehicle emission test system. The chassis dynamometer segment is projected to obtain a high CAGR during the forecast period, owing to the increasing usage of chassis dynamometers to measure torque and speed parameters in vehicle performances.
Chassis dynamometers aid in determining overall vehicle performance, including mileage accumulation and emission testing. Increasing research and development activities in the automotive industry spur the demand for chassis dynamometers, boosting segment growth.
The vehicle emission test system segment is anticipated to expand in the coming years, due to the growing demand for safety features in automobiles. Increasing awareness regarding carbon emission and its negative effects on the environment propels the demand for vehicle emission test systems across the globe, driving the segment growth.
Passenger vehicles segment holds a key market share
In terms of vehicle types, the global automotive test equipment market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger vehicles segment is expected to drive the global automotive test equipment market during the forecast period, owing to the rising demand for passenger vehicles in developing and developed countries across the globe.
Growing disposable income among consumers supports increasing automobile sales in developing and developed countries. Stringent government rules regarding carbon emission and automobile safety performance across the globe contribute to the global automotive test equipment market growth.
The light commercial vehicles segment and the heavy commercial segment are anticipated to expand during the forecast period, as these types of commercial vehicles need to adhere to stringent mandates for performance and driver safety, especially for long hauls.
Computer & laptop-based equipment segment expands rapidly
Based on applications, the global automotive test equipment market is segregated into smartphones-based equipment, computer & laptop-based equipment, handheld scanning equipment, and others. The computer & laptop-based equipment segment is estimated to spur the market during the forecast period, as these equipment come primarily in hardware and software bundles including all the necessary components such as cables and others.
The computer & laptop-based equipment has the abilities to calculate fuel efficiency, estimate torque and horsepower, and plot and log sensor data. Several technicians prefer to use computer & laptop-based equipment for extracting data and analyzing automobile components.
The handheld scanning equipment segment is anticipated to garner a large revenue share in the coming years, owing to the ease in usage of handheld scanning equipment. Fuel pressure testers, gas analyzers, thermometers, air pressure testers, battery testers, and emission analyzers are some of the examples of handheld scanning equipment.
Authorized service centers segment registers significant growth
In terms of end-users, the global automotive test equipment market is divided into OEM assembly plants, authorized service centers, OEM research & development centers, and others. The authorized service centers segment is projected to hold a key market share during the forecast period, due to rising demand for driver safety and vehicle diagnosis services across the globe.
Authorized service centers offer complete vehicle diagnostics, vehicle component repairs, vehicle features update, and other safety services to customers. Growing electronics functions in automobiles and stringent government policies for carbon emission drive the authorized service centers segment growth.
Asia Pacific to dominate the market
On the basis of regions, the global automotive test equipment market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, as Asia Pacific is considered as an emerging hub for automobile production.
Rising demand for automobiles in countries such as India and China and increasing purchasing power of consumers in these countries are the major factor boosting the automotive test equipment market in Asia Pacific. Low automobile penetration in several areas in the region, an increasing number of production plants in countries such as Japan, India, and China, growing automobile production, availability of low-cost labor, and favorable government initiatives boost the automobile industry in Asia Pacific, propelling, in turn, the automotive test equipment market growth.
The automotive test equipment market in Europe held a significant market share in 2019 and is anticipated to expand during the forecast period. The presence of several automobile companies, government policies regarding public safety, a necessity to clear safety certification, and various manufacturers providing enhanced safety features are some of the major points propelling the automotive test equipment market in Europe.
Segments
The global automotive test equipment market has been segmented on the basis of
Types
- Engine Dynamometer
- Wheel Alignment Tester
- Chassis Dynamometer
- Fuel Injection Pump Tester
- Vehicle Emission Test System
Vehicle Types
- Passenger Vehicles
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Applications
- Smartphones-based Equipment
- Computer & Laptop-based Equipment
- Handheld Scanning Equipment
- Others
End-Users
- OEM Assembly Plants
- Authorized Service Centers
- OEM Research & Development Centers
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Robert Bosch GmbH
- BorgWarner Inc. (Delphi Technologies)
- Honeywell International Inc.
- Aptiv
- Siemens
- Horiba, Ltd.
- ABB
- ACTIA Group
- SGS SA
- Sierra Instruments, Inc.
- Softing AG
- SPACE S.R.L.
- AVL List GmbH
- Moog Inc.
- Freese Enterprises Inc.
- ADVANTEST CORPORATION
- Continental AG
- Nanoscale Integration and Modeling (NIMO) Group, ASU (PTM Electronics)
- DENSO CORPORATION
- TÜV SÜD
- Vector Informatik GmbH
- Millbrook Proving Ground
- Teradyne Inc.
- Anritsu Corporation
- PCE Instruments
- Fluke Corporation
- Alfamation S.p.A.
- ETAS
- Snap-on Incorporated
- TASI Group
- Others
Competitive Landscape
Key market players competing in the global automotive test equipment market are Robert Bosch GmbH; BorgWarner Inc. (Delphi Technologies); Honeywell International Inc.; Aptiv; Siemens; Horiba, Ltd.; ABB; ACTIA Group; SGS SA; Sierra Instruments, Inc.; Softing AG; SPACE S.R.L.; AVL List GmbH; Moog Inc.; Freese Enterprises Inc.; ADVANTEST CORPORATION; Continental AG; Nanoscale Integration and Modeling (NIMO) Group, ASU (PTM Electronics); DENSO CORPORATION; TÜV SÜD; Vector Informatik GmbH; Millbrook Proving Ground; Teradyne Inc.; Anritsu Corporation; PCE Instruments; Fluke Corporation; Alfamation S.p.A.; ETAS; Snap-on Incorporated; TASI Group; and others.
Some of these major companies have adopted a series of business development strategies including mergers and acquisitions, entering into partnerships and collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
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In November 2019, Robert Bosch GmbH, a Germany-based multinational technology and engineering company, updated its BEA 950 emission tester and other diagnostic trolleys. The enhanced trolleys are equipped with technologically advanced devices that aid in wounding up cables and hoses after use and stowing them away easily.
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In March 2020, ACTIA Group, a leading company in the design, manufacture, and diagnostics of electronic systems in the automotive industry, set up vehicle inspection centers in the Philippines and Laos. The test centers are set up with test benches for light vehicles, heavy commercial vehicles, and motorcycles. The test centers offer solutions to independent dealerships, public bodies, and vehicle inspection center networks.
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