Automated Test Equipment Market To Reach A Befitting USD 11.5 Billion From 2021 to 2027


Ravi Bankar

5 months ago | 3 min read

The automated test equipment market is anticipated to see robust growth by 2027 owing to surging adoption of rising penetration of 5G and IoT devices. The need for electronic systems with high-quality standards and improved functionalities is influencing the adoption of computerized machinery like automated test equipment. As compared to manual testing methodology, automatic test systems can reduce the incidence of failure or error, resulting in their widespread acceptance in industries like consumer electronics.

One of the major factors bolstering automated test equipment market expansion is the growing investment in electronic production facilities. To cite an instance, in February 2022, Samsung unveiled its plans to invest $920 million to upgrade a smartphone manufacturing factory in North Vietnam, taking the company’s investment in the factory from nearly $1.35 billion to $2.27 billion. Since semiconductor-based parts are used in a variety of electronic devices, the potential increase in smartphone production could boost the demand for semiconductor automated test equipment.

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To prevent faulty devices from entering the market, the use of automatic testing equipment has skyrocketed across myriad industry landscapes, including avionics. Listed below are three major industrial sectors where the use of automated test equipment is growing:

1. Strong focus on airport expansion in India

In the aerospace and defense industry, automatic test equipment is deployed to calibrate and verify complex electronics. This is necessary to meet the mission-critical needs of running complex systems with zero defects. In consequence, the automated test equipment industry is expected to register commendable growth over the years ahead, considering the strong focus on advancing aircraft manufacturing, especially in emerging nations.

In December 2021, Jyotiraditya Scindia, Civil Aviation Minister of India, revealed that civil aviation in the country is slated to expand, with the government planning to increase the number of airports from over 138 to 220 over 4–5 years. Factors such as these could boost aircraft manufacturing and consequently augment the need for automated devices to test complex electronic systems used in the aviation industry.

2. Increase in automobile production in the U.S.

Semiconductor-based components are used in a range of products like automobiles. Since these components become more and more sophisticated, there has been a growing need for highly accurate and stable automated test equipment to conduct electrical tests to verify their quality, performance, and reliability.

Over recent months, there has been a significant increase in auto production in the U.S. According to the Federal Reserve, overall automotive production rose by 0.9% in March 2022, keeping pace with the upwardly revised pace of February. This favorable growth trajectory of the U.S. factory activities due to the sharp rebound in automobile output could amplify the usage of automated test equipment market.

3. Growing emphasis on robotic automation for food industry applications

Apart from automobiles, semiconductor devices are gaining widespread adoption in automated systems like industrial robots. Over the years, there has been increased funding in technology companies to boost robotic automation, which could therefore enhance the demand for automated test equipment market.

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To cite an instance, in June 2021, Soft Robotics secured over $10 million in funding as an extension to the $23 million funding round announced in January 2020. These funds were intended to address challenges associated with food supply chain disruptions and labor shortages through the deployment of robotic automation to transform the food industry. Initiatives such as these could bolster the automated test equipment market expansion to ensure superior flexibility, long life, scalability, minimal maintenance, as well as reliability of electronics used in robots.

With the advancement in technology and innovation in electronic components, there have been escalating requirements for accurate testing services to prevent faulty devices from entering the market. The commendable expansion of industrial sectors like automotive, which rely on chip-based components, could therefore proliferate the demand for automated test equipment for electronics.

Partial Chapter of the Table of Content

Chapter 1 Methodology and Scope

1.1 Scope & definition

1.2 Methodology

1.3 Data Sources

1.3.1 Primary

1.3.2 Secondary

Chapter 2 Executive Summary

2.1 Automated test equipment market 3600 synopsis, 2016–2027

2.1.1 Business trends

2.1.2 Regional trends

2.1.3 Type trends

2.1.4 Application trends

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Created by

Ravi Bankar







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