Automated Test Equipment Market Trends

Market Trends of Automated Test Equipment Industry

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.