Automatic Test Equipment Market

Automatic Test Equipment Market Outlook - 2030

The global automatic test equipment market size was valued at $6.44 billion in 2020, and is projected to reach $9.52 billion by 2030, growing at a CAGR of 4.2% from 2021 to 2030. 

The handler segment has been adversely impacted by the emergence of COVID-19 pandemic.

Automatic test equipment, also known as automated test equipment, is a computerized machinery solution that employs test instruments to assess and conduct findings of quality, performance, functionality, and stress tests performed on electronic equipment and systems. Furthermore, automatic test equipment is used to test devices such as printed circuit boards (PCBs), integrated circuits (ICs), and hard disc drives (HDDs). Furthermore, devices used to test automatic test equipment for PCB are referred to as unit under test, device under test, and equipment under test. Furthermore, automatic test system is designed to reduce broad variability troubleshooting to ensure test and cycle time consistency.

Semiconductor automatic test equipment monitors, controls, and captures data using insights from a wide range of signals and instruments such as digital storage oscilloscopes, digital multi-meters, LCR meters, arbitrary waveform generators, and radiofrequency or vector signal generators. Further, next-generation automatic test equipment is designed to digitize and automate traditional manual testing equipment, procedures, and processes to cut down testing time and money. In addition, rise in use of data diagnostic and acquisition tools for testing electronic applications across the aerospace & defence and industrial automation sector offers significant opportunities for the automatic test equipment market growth. 

The automatic test equipment market share is expected to witness notable growth during the forecast period, owing to rise in penetration of 5G and Internet of Things applications, globally. Furthermore, rise in demand for SoCs in computing and AI-powered applications during the forecast period. Moreover, rise in demand for advanced semiconductor components in consumer electronics is expected to propel the automatic test equipment market analysis.

However, high cost associated with purchase and maintenance is expected to restrain the market growth. Further, surge in government initiatives to propel the semiconductor industry offers significant growth opportunities for automatic test equipment. In addition, surge in adoption of energy-efficient integrated circuits solution is expected to provide a lucrative opportunity for growth of the automatic test equipment market forecast.

COVID-19 Impact Analysis 

Emergence of COVID-19 has immensely affected growth rate of the market in 2020. Further, the market is estimated to witness relatively slow growth till the end of 2021, owing to government regulations globally.

The market was primarily hit by several obstacles created amid the COVID-19 pandemic in the construction industry including availability of raw materials, skilled workforce, and safety measures, deliverables, contractual obligations, and project delays or cancellations. Consequently, it resulted in decrease in demand for automatic test equipment. However, rise in digital infrastructure solutions across consumer electronics and aerospace sectors is expected to drive growth of the automatic test equipment market post pandemic

Segmentation Review

The automatic test equipment market is segmented on the basis of type, component, industry vertical and region. On the basis of type, the market is fragmented into memory (DRAM, Flash Memory, and SRAM), mixed signal, digital, and others. The memory segment dominated the market, in terms of revenue in 2020, and is expected to follow the same trend during the forecast period. On the basis of component, the market is segregated into industrial PC, mass Interconnect, handler, prober, and others. 

The industrial PC segment was the highest revenue contributor in 2020, and is anticipated to garner significant market share during the forecast period. On the basis of industry vertical, it is fragmented into aerospace & defense, automotive & transportation, consumer electronics, information and communication, healthcare & life science, and others. The consumer electronics test equipment market share of aerospace & defense segment garnered the highest in 2020, and is expected to grow at a high CAGR from 2021 to 2030. 

Region wise, the automatic test equipment market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America is expected to develop at highest rate during the forecast period. North America, specifically the U.S., remains a significant participant in the global automatic test equipment market. Major organizations and government institutions in the country are intensely putting resources into the technology. 

Top Impacting Factors

Significant factors that impact growth of the global automatic test equipment market include surge in penetration of 5G and Internet of Things-based applications, coupled with increase in demand for advanced semiconductor components in consumer electronics. Moreover, rise in demand for SoCs in computing and applications is expected to drive the market growth. However, high cost associated with purchase and maintenance of automatic test equipment acts as a major barrier for early adoption, which hampers growth of the market. On the contrary, rise in government initiatives to boost the semiconductor industry paired with a rise in adoption of energy-efficient integrated circuits solutions is anticipated to provide remunerative opportunities for expansion of the automatic test equipment industry during the forecast period.

Competitive Analysis

Competitive analysis and profiles of the major players in automatic test equipment industry are 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. are provided in this report. 

Key Benefits For Stakeholders

• This study comprises analytical depiction of the automatic test equipment market size along with the current trends and future estimations to depict the imminent investment pockets.
• The overall automatic test equipment market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current automatic test equipment market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.
• The report includes the market share of key vendors and automatic test equipment market trends.

Key Market Segments

By Type

• Memory
• DRAM
• Flash Memory
• SRAM
• Mixed Signal
• Digital 
• Others

By Component

• Industrial PC
• Mass Interconnect
• Handler
• Prober
• Others

By Industry Vertical

• Aerospace & Defense
• Automotive and Transportation
• Consumer electronics
• Information and Communication
• Healthcare & Life Science
• Other

Key Players

• Advantest Corporation.
• Cal-Bay Systems, Inc. (Averna)
• Chroma ATE Inc.
• LTX-Credence (Cohu, Inc.)
• Marvin Instruments Corp.
• National Instruments Corp.
• Roos Instruments, Inc.
• Shinbashi, Inc.
• SPEA S.p.A.
• Teradyne Inc.