Automated Test Equipment Market Size (2024 - 2029)

The automated test equipment market is anticipated to experience growth driven by increasing demand in the consumer electronics and telecom sectors, particularly due to the adoption of 5G technology. This market expansion is supported by advancements in semiconductor production processes and the global proliferation of mobile networks. However, high costs associated with automated testing technology and challenges in integrating devices under test pose significant barriers to market growth. The COVID-19 pandemic initially disrupted demand across various industries, but the shift towards remote work boosted the need for automation test technology in consumer electronics, helping the market to sustain its growth trajectory. Post-pandemic, developments in electronic infrastructure are expected to further enhance the market's expansion.

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Market Size of Automated Test Equipment Industry

Automated Test Equipment Market Summary
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

Automated Test Equipment Market 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) 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
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific
Japan
China
South Korea
Rest of Asia-Pacific
Latin America
Mexico
Brazil
Rest of Latin America
Middle-East & Africa
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Automated Test Equipment Market Size Summary

The automated test equipment (ATE) market is poised for steady growth, driven by its critical role in ensuring the quality and reliability of electronic components across various industries. ATE is essential for diagnosing and testing faults in semiconductor wafers, integrated circuits, and other electronic components, making it indispensable in the consumer electronics sector. The market's expansion is closely linked to the increasing demand for 5G technology and the global expansion of mobile networks, which necessitate high-throughput manufacturing capabilities. Despite the high costs associated with automated testing technology, its long-term cost-effectiveness and ability to handle large volumes of samples with minimal human intervention make it a valuable investment for manufacturers. The aerospace and defense sectors, with their stringent quality requirements and significant government spending, are also contributing to the market's growth, as they rely on ATE to ensure the safety and reliability of their electronic systems.

In North America, particularly the United States, the ATE market is experiencing robust growth due to the region's strong semiconductor industry and the presence of key vendors. The aerospace sector's prominence and the defense industry's substantial budget allocations further bolster the market. The market is characterized by a high degree of fragmentation, with major players like National Instruments Corporation and Virginia Panel Corporation leading the charge. Strategic partnerships and acquisitions are common as companies seek to enhance their product offerings and maintain a competitive edge. Innovations in ATE technology, such as those developed by Cohu, Inc. and National Instruments Corporation, are enabling faster testing processes and improved accuracy, thereby meeting the evolving demands of industries like automotive and consumer electronics. Despite challenges posed by high costs and the impact of the COVID-19 pandemic, the ATE market is expected to continue its upward trajectory, supported by advancements in electronic infrastructure and the increasing complexity of electronic devices.

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Automated Test Equipment Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness Porter Five Forces

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Test Equipment

      1. 2.1.1 Memory

      2. 2.1.2 Non - memory

      3. 2.1.3 Discrete

      4. 2.1.4 Test Handlers

    2. 2.2 By End-user Industry

      1. 2.2.1 Aerospace and Defense

      2. 2.2.2 Consumer Electronics

      3. 2.2.3 IT and Telecommunications

      4. 2.2.4 Automotive

      5. 2.2.5 Healthcare

      6. 2.2.6 Other End-user Industries

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 France

        4. 2.3.2.4 Italy

        5. 2.3.2.5 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 Japan

        2. 2.3.3.2 China

        3. 2.3.3.3 South Korea

        4. 2.3.3.4 Rest of Asia-Pacific

      4. 2.3.4 Latin America

        1. 2.3.4.1 Mexico

        2. 2.3.4.2 Brazil

        3. 2.3.4.3 Rest of Latin America

      5. 2.3.5 Middle-East & Africa

Automated Test Equipment Market Size FAQs

The Automated Test Equipment Market is projected to register a CAGR of 4.70% during the forecast period (2024-2029)

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.

Automated Test Equipment Market Report Snapshots

Automated Test Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)