Automated Test Equipment Market Analysis Report By Product, By Vertical, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global automated test equipment (ATE) market size was accounted for USD 6.61 billion in 2019. It is anticipated to witness a CAGR of 3.4% over the forecasted period, 2020 to 2027. This rising adoption of SoC (System on Chip) prevailing among semiconductor manufacturers and increasing demand for consumer electronics is expected to drive the market growth for such equipment in the upcoming years. Also, their features for boosting the performance of machines, operational speed, and semiconductor costs are projected to fuel up their demand.

The rising demand for electronic components across Smartphone manufacturing companies and the automobile industry is generating more demand for ATE equipment. Moreover, their features like rapid technological advances being carried out for reducing the design complexities coupled with the emerging concept of miniaturization are driving the demand for ATE products.

Rapid technological advances in the manufacturing process of semiconductors coupled with the wireless network expansion are expected to contribute majorly to the market growth. Further, the surging need for testing and easing the designing complexities is anticipated to benefit the growth of the market.

Product Insights

The ATE market can be classified into discrete, memory, and non-memory segments based on the product type. Rapid advances being carried out in terms of technologies like autonomous vehicles and IoT devices are anticipated to change the dynamics of the market across the globe. A majority of the players are focusing to boost customer satisfaction to widen their global reach by providing good quality products with reduced testing costs.

In 2019, the product segment of non-memory ATE held the largest share across the global market. The complexities associated with the manufacturing of semiconductor chips consume more test time and cost. Thus, several semiconductor manufacturers are engaged in reducing time and costs by encouraging their research and development activities.

Vertical Insights

The market for automated test equipment can be segmented into consumer, automotive, IT & telecommunications, aerospace & defense, and others based on vertical. The segment of others includes entertainment, BFSI, medical and e-commerce sectors. The segment of IT & telecommunications is projected to register significant growth from 2020 to 2027. Further, the rising usage of such equipment in the manufacturing and assembly of semiconductors is projected to generate its demand in the upcoming years.

The surging need for enhancing ST production, performance, and complexity for semiconductor devices is projected to drive the demand for such equipment. The vertical segment of consumers held a share of around 26.0% across the global market in 2019. This can be associated with the rising usage of such equipment in consumer electronic devices.

Regional Insights

The Asia Pacific is anticipated to dominate the global market during the forecasted period, 2020 to 2027. This can be attributed to the surging presence of the semiconductor industry across countries like China and Taiwan. Technologies like probe cards having a fine pitch, mixed-signal testers, and DFT (Design-For-Test) are projected to drive market growth across this region. Moreover, governmental initiatives undertaken by countries like Indonesia, Singapore, Malaysia, China, and Taiwan to promote manufacturing processes are anticipated to fuel up the market growth.

North America is also projected to register a significant growth rate across the global automated test equipment market in the upcoming years. This can be attributed to the rising need for such equipment for measuring, testing, and calibrating instruments across the defense and aerospace sector.

COVID-19 Impact Insights

The market for automated test equipment is expected to get impacted globally due to the ongoing COVID-19 crisis. This can be associated with the reduction in the semiconductor's demand for the production of consumer electronic devices. Further, as the majority of the ATE manufacturers are located in China, their supply is anticipated to get hindered on account of restrictions imposed by statutory governing bodies of other nations over cargo movement from China. However, the government initiatives being undertaken across countries like India to encourage local manufacturers for catering to the regional demands are projected to positively impact market growth.

Automated Test Equipment Market Share Insights

The key players in the market are Chroma ATE Inc., Astronics Corporation, STAR Technologies Inc., Tesec Corporation; Danaher Corporation, Marvin Test Solutions Inc.; and Roos Instruments, Inc. They are constantly engaged in product development and innovation to gain a competitive advantage over other players.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global automated test equipment market on the basis of product, vertical, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)
    • non-memory ATE
    • Memory ATE
    • Discrete ATE

• Vertical Outlook (Revenue, USD Million, 2016 - 2027)
    • Automotive
    • Consumer
    • Aerospace & Defense
    • IT & Telecommunications
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • Japan
        • South Korea
        • Taiwan
        • Thailand
        • Singapore
        • Malaysia
    • South America
        • Brazil
    • Middle East & Africa