The Automated Test Equipment Market was valued at $6.44 Billion in 2022 and is estimated to reach $9.52 billion by 2028, with a CAGR of 4.2% from 2023 to 2028.
Automated test equipment, sometimes referred to as automated test equipment, is a category of computerized gear used to assess and perform stress tests on electronic systems and equipment as well as quality, performance, and functionality tests. Moreover, automated test equipment is used to evaluate electronics, including printed circuit boards (PCBs), integrated circuits (ICs), and hard disk drives (HDDs). Devices used to test automatic test equipment for PCBs are referred to as unit under test, device under test, and equipment under test, among other names. Furthermore, in order to ensure consistency in test and cycle times, the autonomous test system is designed to avoid broad variability troubleshooting.
Data is monitored, controlled, and gathered by semiconductor automation test equipment using a range of signals and devices, including as digital storage oscilloscopes, digital multimeters, LCR meters, arbitrary waveform generators, and radiofrequency or vector signal generators. Also, in order to reduce time and money when conducting tests, next-generation automatic test equipment is designed to digitize and automate the currently used manual testing tools, techniques, and processes.
The market for automatic test equipment has significant growth potential as a result of the rising use of data diagnostic and acquisition tools for testing electronic applications in the aerospace and military, industrial automation, and other sectors.
Market Drivers and Restraints:
The use of automated test equipment (ATE) in the semiconductor and automotive industries is propelling the growth of the automated test equipment market. The market for automated test equipment is expected to expand further as a result of the large increase in the number of connected household appliances and electronics, as well as the increasing focus of businesses on performance optimization and end-to-end testing solutions. During the forecast period, the adoption of contemporary technologies in semiconductor manufacturing businesses to improve dynamic performance, quick response, and ultimately reduce the cost of semiconductor devices is anticipated to positively affect the growth of the global market for automated test equipment.
The price of automation test equipment is a major barrier to the growth of the automated test equipment industry globally. Significant barriers to the growth of the worldwide automated test equipment market include high capital costs and the challenge of integrating the device under test (DUT) with other systems. The unpredictable demand for semiconductors is anticipated to hinder the market for automated test equipment over the forecast period.
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The report is segmented as follows:
The Automated Test Equipment Market is segmented by Product Outlook; the Market is segmented by Vertical Outlook:
By Product Outlook (Non-Memory, Memory, Discrete)
By Vertical Outlook (Automotive, Consumer, Aerospace & Defense, IT & Telecommunications, Others)
With more than 75% of global revenue coming from the automated test equipment market in 2020, the Asia Pacific region was in the lead. As there are so many semiconductor companies in the region, it is expected to be quite dominant during the projection period. The biggest revenue share in the region is anticipated to be shared by China and Taiwan. Upcoming innovations in design standards, faster mixed-signal testers, fine-pitch probe cards, and adaptive testing are expected to significantly alter market dynamics. In nations like China, Indonesia, Malaysia, Singapore, Thailand, and Taiwan, increased government efforts to develop new manufacturing methods are also anticipated to boost growth.
North America is anticipated to have considerable revenue growth in the worldwide automated test equipment market over the course of the forecast period as a result of the expanding use of automated test equipment in the aerospace and military sectors.
The semiconductor industry is rebounding as a result of growing use of semiconductor autos and increased auto sales in Europe, a significant market for consumer electronics. The market for automated test equipment will expand alongside the semiconductor industry. Manufacturers of semiconductors and electronic goods will continue to invest in automated test equipment to meet the high standards of precision and quality demanded by European consumers.
Impact of COVID-19 pandemic on the market:
As a result of the COVID-19 epidemic, the market's most important vendors are concentrating on automating IT operations to deal with the crisis. When business recovers after COVID-19, companies will invest more in cognitive capabilities, artificial intelligence, and robotic process automation (RPA). The epidemic has forced firms to expand their business continuity strategies and assume new risks, making automation and testing a boardroom need.