Automated Test Equipment (ATE) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automated Test Equipment (ATE) Market Analysis
The automated test equipment market is expected to register a CAGR of 4.7 % during the forecast period. Automated Test Equipment (ATE) finds defects in Devices Under Test (DUT) and helps to ensure the quality of devices. ATE is important in automatically diagnosing and testing faults in semiconductor wafers, integrated circuits, chips, printed circuit boards, and other electronic components.
- The ATE market's growth is directly proportional to the increase in demand from the consumer electronics industry. ATE is widely used in consumer electronics to test electronic components and systems after fabrication. It is controlled through a computer, which includes loads of complex test instruments capable of testing and finding faults in the electronic components or integrated circuits.
- The increase in demand for 5G technology adoption worldwide is a prominent element in the telecom sector projected to fuel market expansion. Marvin Test Solutions, Inc., a developer of unique test services for aerospace, military, and industrial enterprises, revealed on April 2021 that their products are TS-900e-5G industrial test equipment for 5G millimeter Wave semiconductor equipment widely utilized by silicon manufacturers.
- These technologies are widely used because they allow manufacturers to satisfy high-throughput manufacturing demands for millimeter Wave semiconductors devices. The TS-900e-5G is perfect for wafer probe and package testing and is compatible with most common manufacturing robotics and handling equipment. Furthermore, developments in semiconductor production processes and the global expansion of mobile networks would substantially influence the growth of the autonomous test tools market.
- The expenses of automated testing technology are a key hindrance to the growth of the global automation test device industry. Expensive material expenditures and difficulties linking the device under test (DUT) to additional systems restrict the targeted market's development.
- Due to the suspension of manufacturing factories, the COVID-19 outbreak has reduced demand for automation test technology from many industries, notably industrial, household electronics, and automotive. Nevertheless, the rise in the number of people working from home due to the outbreak has increased the demand for laptops, tablets, and desktops. This has raised industry demand for automation test technology from OSATs and household electronics OEMs, allowing the sector to continue growing during the outbreak. The development in electronic infrastructure technologies throughout the household electronics and aviation industries, on the other hand, is likely to boost growth in the automation test equipment industry after the pandemic.
Automated Test Equipment (ATE) Market Trends
This section covers the major market trends shaping the Automated Test Equipment Market according to our research experts:
Aerospace and Defence is Expected to Hold a Significant Market Share
- The aerospace and defense industry has witnessed a rise in the adoption of intricate devices in the last three decades, owing to increasing government spending in various regions. This has led to technology development at a rapid pace, with innovation leading to improvement in the efficiency of existing tools and further covering the new scope of operations useful for a wide range of functions.
- With more significant revenues, the aerospace industry is expected to spend significantly on automated test equipment. According to U.S. Census Bureau, The revenue of aerospace products and parts manufacturing in the U.S. is increasing Y-O-Y gradually. There is a slight decrease in revenue during a pandemic, and later, it increases gradually. The revenue of aerospace products and parts manufacturing in the U.S. is projected to amount to approximately USD 264,5 billion by the next two years.
- The electronic devices used in the aerospace and military sectors should be of high quality since any fault might result in major accidents. As a result, the manufacture of electronics equipment for the aviation and defense sectors must be extensively checked with the assistance of automation test equipment, driving the market growth over the forecast period.
- With the implementation of new technology, the need for upgrading the test equipment also arises. For instance, U.S. Naval Air Systems Command (NAVAIR) refreshed the technology as they transitioned from the older system to the newer system for testing aircraft and weapons on carriers. The organization maintained backward compatibility as a requirement, enabling the eCASS stations to leverage the test program set from the older CASS program.
- For decades, the aerospace and defense industry has used NI's (National Instruments Corp.) modular instrumentation and application software to reduce the overall cost and risk associated with its products' test and support. NI has worked with thousands of engineers and leadership teams to manage risk and generate a sustainable market advantage through test engineering and operational support advancements.
North America is Expected to Have a Significant Market Share
- The growing demand for low-cost consumer products, coupled with a steady rise in the adoption in the semiconductor industry, has been identified as the major driver for the growth of the ATE market in the North American region, especially the United States. Although ATE is highly expensive, they represent a cost-effective solution in the long term, as they can be used to test large volumes of samples with minimal human intervention.
- Moreover, the region has a strong foothold of vendors, contributing to the market's growth. Some include National Instruments Corporation, Astronics Corporation, and Roos Instruments, Inc.
- Stadler US is a wholly owned subsidiary of Stadler Rail AG, an international designer, and manufacturer of a comprehensive range of trains. Astronics would work with Stadler and its major systems suppliers to design and deploy automatic testers and diagnostics that ensure passenger safety by verifying that critical railcar systems remain in a state of good repair.
- The aerospace sector of the US is considered the global most significant and one of the leading suppliers of military and civil aerospace hardware to the rest of the world. The huge aerospace industry of the United States exports more of all aerospace production. Many foreign firms are attracted to the country's aerospace market as it is the largest in the world, characterized by a skilled and hospitable workforce, diverse offerings, and extensive distribution systems.
- Automated test equipment further finds its application in the defense sector. The defense industry in the country has a budget allocation that is more than the entire economy of more than half of the existing countries in the world.
- Also, the application of ATE in consumer electronics, such as mobile devices, is prospering to make the release schedules shorter. With growing cybersecurity threats and the rising complexity of applications, organizations are also enhancing the test coverage for their enterprise application suite with the help of ATE throughout the region.
Automated Test Equipment (ATE) Industry Overview
The automated test equipment market is highly fragmented, with major players like Virginia Panel Corporation, MAC Panel Company, Xcerra Corporation, National Instruments Corporation, and SPEA SpA, among others. Moreover, automated test equipment is used in various industries to provide vendors with growth opportunities. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In December 2022, Cohu, Inc., a global equipment and service supplier that improves semiconductor manufacturing yield and productivity, announced a strategic partnership with Chunghwa Precision Test Tech. Co., Ltd. is a leading test interface solution provider that delivers advanced probe card and interface products to the semiconductor test market. Cohu's mmWave RF probe head and socket technology, together with CHPT's sophisticated substrate and load boards, would result in an optimized turnkey interface solution for probe and final test, reducing client costs and increasing time to market.
In April 2022, National Instruments Corporation (NI) acquired Kratzer Automation. With the acquisition of Kratzer Automation, NI expands its EV test capabilities. The company could test all important components of EVs, such as the battery, inverter, and engine control, by supplying EV testing software and fully integrated test equipment. The combination of NI's flexible EV hardware and software test platform and Kratzer Automation's application-specific EV software and integration capabilities, according to NI, would enable faster responses to change test needs, faster time to market, and lower total cost of test for a broader range of customers.
Automated Test Equipment (ATE) Market Leaders
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Virginia Panel Corporation
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MAC Panel Company
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Xcerra Corporation
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National Instruments Corporation
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SPEA SpA
*Disclaimer: Major Players sorted in no particular order
Automated Test Equipment (ATE) Market News
- November 2022: Lear Corporation, one of the global leaders in seating and e-systems technology, announced the strategic acquisition of InTouch Automation, a supplier of Industry 4.0 technologies and complex automated testing equipment utilized in manufacturing automobile seats.
- November 2022: Cohu, Inc., a global provider of technology and solutions that improve semiconductor production efficiency & productivity, revealed that a top global MEMS sensor manufacturer had chosen Cohu's next generations MEMS test platform, Sense+, for evaluating its portfolio of innovative gyroscopic sensors. The Sense+ design separates the stimuli and test modules from the processing system, allowing up to a tenfold improvement in test accuracy over previous-generation systems. The system is capable of high-throughput testing and examining small, sensitive devices. Sense+ also allows users to change the system to test additional sensors, prolonging the platform's usable life. Furthermore, Sense+ provides wafer-level examination and manipulation of sophisticated MEMS.
- May 2022: National Instruments Corporation (NI) released its newest Battery Test System (BTS) for testing electric vehicles (EVs). The solution is intended to assist Tier 1 suppliers and automakers in adapting to the complexity and size of EV battery testing by enhancing customization, automation, and data linkage across the whole battery test process to assure performance and expedite time to market.
- April 2022: Fitness testing of Vehicles through Automated Testing Stations will be made mandatory by the Government from next year by the Indian Government. While in the case of medium goods vehicles, medium passenger motor vehicles, and light motor vehicles (transport), the requirement would be compulsory from June 1, 2024. Since the Government has made the fitness of vehicles the criteria for phasing out old and unsafe ones, a lot would depend on the quality of test results.
Automated Test Equipment (ATE) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness Porter Five Forces
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth in Consumer Electronics Sales and Explosion of IOT
5.1.2 Increased Focus on Sophisticated Testing Methods Leading to Multiple Test Cases
5.2 Market Restraints
5.2.1 High Costs Associated With Testing Equipment
6. MARKET SEGMENTATION
6.1 By Type of Test Equipment
6.1.1 Memory
6.1.2 Non - memory
6.1.3 Discrete
6.1.4 Test Handlers
6.2 By End-user Industry
6.2.1 Aerospace and Defense
6.2.2 Consumer Electronics
6.2.3 IT and Telecommunications
6.2.4 Automotive
6.2.5 Healthcare
6.2.6 Other End-user Industries
6.3 Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 France
6.3.2.4 Italy
6.3.2.5 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 Japan
6.3.3.2 China
6.3.3.3 South Korea
6.3.3.4 Rest of Asia-Pacific
6.3.4 Latin America
6.3.4.1 Mexico
6.3.4.2 Brazil
6.3.4.3 Rest of Latin America
6.3.5 Middle-East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Virginia Panel Corporation
7.1.2 MAC Panel Company
7.1.3 Xcerra Corporation
7.1.4 National Instruments Corporation
7.1.5 SPEA SpA
7.1.6 Advantest Corporation
7.1.7 Star Technologies
7.1.8 Aeroflex, Inc.
7.1.9 Astronics Corporation
7.1.10 Roos Instruments, Inc.
7.1.11 Chroma ATE, Inc.
7.1.12 Samsung Semiconductor, Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automated Test Equipment (ATE) Industry Segmentation
Automated test equipment (ATE) is mainly employed to check device defects and ensure their quality. All the electronic equipment manufacturers need to make the respective systems foolproof, and for that purpose, they need testing mechanisms before deployment.
The scope of the study comprises market size estimation considering the revenues accrued from different types of automated test equipment. The market is segmented by end-user industries, such as aerospace and defense, consumer electronics, IT and telecommunications, automotive, healthcare, and other industries. Furthermore, the scope of the study is segmented by types of test equipment and geographical segments. The assessment of the impact of COVID-19 has also been covered in the study.
For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).
| By Type of Test Equipment | |
| Memory | |
| Non - memory | |
| Discrete | |
| Test Handlers |
| By End-user Industry | |
| Aerospace and Defense | |
| Consumer Electronics | |
| IT and Telecommunications | |
| Automotive | |
| Healthcare | |
| Other End-user Industries |
| Geography | |||||||
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| Middle-East & Africa |
Automated Test Equipment (ATE) Market Research FAQs
What is the current Automated Test Equipment Market size?
The Automated Test Equipment Market is projected to register a CAGR of 4.70% during the forecast period (2024-2029)
Who are the key players in Automated Test Equipment Market?
Virginia Panel Corporation, MAC Panel Company, Xcerra Corporation, National Instruments Corporation and SPEA SpA are the major companies operating in the Automated Test Equipment Market.
Which is the fastest growing region in Automated Test Equipment Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automated Test Equipment Market?
In 2024, the North America accounts for the largest market share in Automated Test Equipment Market.
What years does this Automated Test Equipment Market cover?
The report covers the Automated Test Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automated Test Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automated Test Equipment Industry Report
Statistics for the 2024 Automated Test Equipment market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Automated Test Equipment analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
