The global automated test equipment market size was valued at USD 3.46 Billion in 2016 and is expected to witness a significant increase in the market over the forecast period. The growth of automated test equipment market is driven by its use in automotive and semiconductor industry.
There is a significant increase in the number of connected devices and consumer electronics. The companies are increasingly focusing on quality improvement along with end-to end testing solutions which is one of the primary driver for automated test equipment market. Implementation of automatic test equipment in semiconductor manufacturing companies will enhance its performance capability, the speed of operation and which in turn, reduce the cost of the semiconductor device.
UK automated test equipment market by vertical, 2014 - 2025 (USD Million)
Increasing adoption of System-on chip and high demand for consumer electronics is expected to be the key driving force for the market over the forecast period. Growing electronic components in the automotive sector and penetration of smartphones is expected to drive the market over the forecast period. Miniaturization of devices has spurred ATE demand across application areas. Additionally, considerable technological advancements coupled with design complexity and the need for effective testing is expected to impact the global industry positively. Developments in the manufacturing processes of semiconductors and expansion of wireless networks in developing nations are expected to provide significant growth for the global market over the coming years.
Recent innovations in IoT devices and autonomous vehicles along with significant changes in the defense and aerospace sectors have drastically changed the dynamics of the ATE market. Companies are focusing on enhancing customer satisfaction by ensuring faster time-to-market along with ensuring superior quality products and low-testing costs. These factors act as significant drivers for the ATE Market
The ATE market in product segment includes products such as non-memory ATE, memory ATE, and discrete ATE. The non-memory ATE segment dominated the automated test equipment market in 2016.
Automated test equipment market by product, 2016 (%)
Increased complexities in semiconductor chip manufacturing needs significant amount of test cost and test time. The recent advancement in technologies have significantly reduced the cost and time for manufacturing semiconductor IC and increased margin for the companies. ATE companies constantly invest in R&D in order to enhance their product portfolio and to fit in with the latest improvement in semiconductor devices.
The increasing applications of automatic test equipment in semiconductor assembly and manufacturing industry is expected to drive the market demand. The automated Test Equipment based on the vertical is segmented to include automotive, consumer, defense. IT & telecommunications, and others. The IT & Telecommunication vertical in ATE market is expected to have significant market share in the overall market.
The demand for automated test equipment is driven mainly by the increasing unit production, complexity, and performance level of semiconductor devices used in several electronic products along with the emergence of development in semiconductor device technology. Furthermore, the increasing pricing pressure among semiconductor manufacturers has forced suppliers to leverage the utilization of capital equipment across multiple devices.
The increasing applications of Automatic Test Equipment’s in semiconductor assemble and manufacturing industry is expected to drive the market demand. The applications of Automated Test Equipment include automotive, consumer, defense. IT & telecommunications, and others. Automated Test Equipment developed for consumer products vertical is expected to share 26.3% of the overall Automated Test Equipment market share in 2016.
Asia Pacific is expected to emerge as a major region for automated test equipment market over the forecast period. The growth in the region is mainly attributed to the significant presence of semiconductor industries in this region. China and Taiwan are expected to share the maximum market in Asia-Pacific regions.
Various technologies such as adaptive testing, advanced Design-For-Test (DFT), faster mixed-signal testers, fine-pitch probe cards and design standards are the future technologies expected to significantly change the dynamics of the ATE market and enhance growth.
The automated test equipment market based on the region is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa (MEA). The Asia Pacific regional market dominated the global automated test equipment market. The North American regional markets are anticipated to witness significant gains, in revenue shares, over the forecast period due to its increasing applications in the defense sector.
Key players in ATE market include Aemulus Holdings Bhd (“Aemulus”), Chroma ATE Inc., Aeroflex Inc. (a subsidiary of Cobham plc), Astronics Corporation, Advantest Corporation, LTX-Credence Corporation (Xcerra Corporation) , Teradyne Inc., STAr Technologies Inc. (a subsidiary of Innotech Corporation), Tesec Corporation, Roos Instruments, Inc., Marvin Test Solutions Inc. and Danaher Corporation. Teradyne Inc., LTX-Credence Corporation (Xcerra Corporation), Advantest Corporation dominated the over 80% of the total market in 2016.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, South America, Asia-Pacific, Europe, MEA
Revenue forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the Automated Test Equipment market based on Product, design, and country.
Product Outlook (Revenue, USD Million; 2014 - 2025)
Design Outlook (Revenue, USD Million; 2014 - 2025)
IT & Telecommunications
Regional Outlook (Revenue, USD Million; 2014 - 2025)
The Middle East and Africa (MEA)
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