Semiconductor Test Equipment Market Size (2024 - 2029)

Semiconductor Test Equipment Market Analysis

The Semiconductor Test Equipment Market size is estimated at USD 14.23 billion in 2024, and is expected to reach USD 19.22 billion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).

• The semiconductor test equipment market is expected to grow due to technological advancements such as AI, HPC, 5G, and automated vehicles. Further, the technological advancement in chip technology and growing production of 3nm and 5nm semiconductor chips create a huge demand for efficient test equipment to test small process geometrics.
• As next-generation devices are designed with smaller chips, Apple announced it would use 3nm technology in iPhone 15 Pro/Ultra; such developments drive market growth. Testing semiconductors with 5nm or smaller process nodes is challenging. Manufacturers focus on developing new and advanced test solutions that ensure the best yield, quality, and control costs.
• The government's efforts to increase in-house production and investment by leading semiconductor fabs will increase semiconductor production, which will likely foster the market for testing equipment. For instance, in February 2024, the Government of India approved three semiconductor units for the development of semiconductor and display manufacturing ecosystems in India.
• The rising utilization of electronic components in automobile navigation, safety systems, and infotainment also plays a significant role in propelling the growth of semiconductor testing equipment. Moreover, the increasing demand for semiconductors in consumer electronics like smartphones, tablets, and laptops/PCs is anticipated to be a key driver in this market. Moreover, the semiconductor test equipment market is expected to benefit from the increasing adoption of internet-of-things (IoT) in different industrial sectors.
• The high cost of advanced testing equipment restricts market growth. With the introduction of advanced chip technology, testing equipment was upgraded to include the latest technology, increasing the equipment cost. Further, stringent government regulations related to semiconductor equipment facilitate market growth.
• Also, the crisis in Ukraine is the latest obstacle to arise, and it can cause significant disruptions in various manufacturing sectors such as high-tech, automotive, consumer electronics, and household appliances. This could have far-reaching consequences for the industry as a whole. Russia and Ukraine play crucial roles in the global semiconductor supply chain, supplying essential materials such as palladium and neon, vital for producing silicon wafers used in modern devices and equipment. The suspended semiconductor production significantly impacts the sales of testing equipment. The ongoing dispute between the US and China will significantly impact the market growth as China is the major consumer electronics market in the world. However, it largely depends on other countries for advanced semiconductor equipment.

Semiconductor Test Equipment Industry Segmentation

Semiconductor testing equipment ensures the reliability, quality, and performance of semiconductor devices. Equipment types include semiconductor automated test equipment, burn-in systems, handler equipment, probe equipment, and optical inspection systems.

The semiconductor test equipment market is segmented by type of product (semiconductor automated test equipment [ATE], burn-in systems, handler equipment, probe equipment, optical inspection systems, and other equipment categories) and geography (North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.