Automatic Test Equipment Market Expected to Reach $9.52 Billion By 2030

According to a new report published by Allied Market Research, titled, “Automatic Test Equipment Market By Type, Component, And Industry Vertical: Global Opportunity Analysis And Industry Forecast, 2021–2030,” the automatic test equipment market size was valued at $6.44 billion in 2020, and is projected to reach at $9.52 billion by 2030, growing at a CAGR of 4.2% from 2021 to 2030.

Automatic test equipment is a vital element of electronics test scenes designed to enable conduct of tests on various devices known as devices under test. Advanced automatic test equipment for PCB uses automated information and control system technology to perform an enhanced test that calculates and quantifies devices under test.

Moreover, semiconductor automatic test system  can range from a simple computer-controlled digital multimeter to a complex computer system with dozens of complex test instruments capable of testing and diagnosing or detecting errors in sophisticated electronic packaged parts such as integrated circuits and systems on chips. Moreover, rise in concerns related to error-free electronics application and supply chain across consumer electronics, offering significant growth opportunities for the market in coming years.

Surge in demand for advanced semiconductor components across consumer electronics sector and rise in penetration of 5G and Internet of Things drive the market growth. Moreover, surge in demand for SoCs in computing and AI applications propels the market growth. However, high cost associated with purchase and maintenance of automatic test equipment is anticipated to restrain the automatic test equipment market share. Further, surge in government initiatives to propel the semiconductor industry paired with surge adoption of energy-efficient integrated circuits solution is expected to provide lucrative opportunities for the automatic test equipment industry during the forecast period.

According to the automatic test equipment market trends, the industrial segment was the highest contributor to the market in 2020. The consumer electronics and information and communication segments collectively accounted for around 46.4% market share in 2020. Surge in adoption of advanced semiconductor technology application across the consumer electronics sector has led to growth of industrial PC segment; thereby, enhancing the automatic test equipment market growth.

COVID-19 Impact Analysis

Emergence of COVID-19 has significantly impacted the global automatic test equipment industry. Delay caused for construction projects due to partial or complete lockdown in various regions of the world has significantly reduced production of drones in agriculture during the pandemic. However, surge in demand for error free electronics applications has propelled demand for automatic test equipment. Hence, consumer electronics and medical industries has seen potential opportunities in deployment of automatic test equipment and is expected to drive the automatic test equipment market analysis post-pandemic.

Region wise, North America holds a significant share in the global automatic test equipment market size. The adoption of sustainable automatic testing equipment’s solution in aerospace a& defense sector is expected to propel the automatic test equipment industry in this region. Moreover, presence of prime vendors paired with advanced technological solutions in North America is anticipated to boost growth of the automatic test equipment market in this region.

Key Findings Of The Study

• In 2020, the industrial PC segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 3.5% during the forecast period.
• The memory and mixed signal segments together accounted for around 59.7% of the automatic test equipment market share in 2020.
• The healthcare & life science segment is projected to growth at a CAGR of 6.7% during the forecast period.
• North America contributed for the major share in automatic test equipment market, accounting for more than 35.1% share in 2020.

The key players profiled in the report include Advantest Corporation, Cal-Bay Systems, Inc. (Averna), Chroma ATE Inc., LTX-Credence (Cohu, Inc.), Marvin Test Solution, Inc., National Instruments Corp., Roos Instruments, Inc., Shinbashi Inc., SPEA S.p.A., and Teradyne Inc. Market players have adopted various strategies such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the automatic test equipment market.