The global automated test equipment market size is estimated to reach USD 8.68 billion by 2027, expanding at a CAGR of 3.4% over the forecast period, according to a new study conducted by Grand View Research, Inc.
One of the main factors fuelling its growth is the increasing adoption of System on Chip (SoC) coupled with high demand for consumer electronics is anticipated to drive the growth.
Furthermore, growing electronic content in the automotive sector and the penetration of smartphones is expected to drive the market. Also, the demand for Automated Test Equipment (ATE) in the manufacturing industry as the test equipment save the manufacturing cost and helps in eliminating the defective devices is projected to continue fueling the market.
Key suggestions from the report indicate that the growth of the automated test equipment market is driven by the significant use of the test equipment in the automotive and semiconductor industry but there is more.
In the product segment, Non-memory ATE held the largest market share in 2019 and is estimated to witness the second-fastest growth over the forecast period owing to the expansion of consumer electronics, a growing number of microcontroller-based application, and other such factors
In the vertical segment, IT and telecommunication is estimated to continue holding the largest market share in the forthcoming years, owing to the increased focus on effective communication
The automotive segment is expected to witness considerable growth over the forecast period owing to the increasing integration of the electronic devices in the automobile industry
North America is estimated to witness substantial growth over the forecast period owing to the high investment in aerospace and defense coupled with technological innovations
Miniaturisation has spurred demand across various semiconductor manufacturing companies.
Additionally, considerable technological advancements coupled with design complexity and the need for adequate testing is expected to positively impact the growth. Developments in semiconductor manufacturing processes along with the expansion of wireless networks in developing nations is expected to provide significant growth opportunities for the global market.
The growth of the ATE market is primarily driven by semiconductor manufacturing companies that focus on cost-effective testing. Semiconductor manufacturing companies no longer consider fabrication costs as a factor for profit margin in semiconductor chip manufacturing. Semiconductor companies focus on improving their fabrication technology and look for efficient ways of testing to reduce losses due to damages.
Advancements in smartphones, tablets, and SoC-based products is creating demand for greater functionality in ATE. As connected devices get smaller, more powerful, and multifaceted; they face design, application, and fabrication challenges, increasing the product demand.
Increasing design complexities along with major technological inventions such as advanced Design for Test (DFT) and adaptive testing are some of the key factors driving the automatic test equipment market. Moreover, recent innovations in Internet of Things (IoT) devices, autonomous vehicles, along with significant changes in the defense and aerospace sectors have significantly transformed the market dynamics.
Non-memory automated test equipment product segment is expected to hold significant market share over the forecast period owing to the increasing number of microcontroller-based applications and demand of the automotive sector. Revenue from the IT and telecommunications sector is projected to witness significant growth in the forthcoming years.