Automated Test Equipment Market Size, Share & Trends Analysis Report By Product (Non-memory, Memory, Discrete), By Vertical (Automotive, Aerospace & Defense, IT & Telecom), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global automated test equipment market size was valued at USD 6.87 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.3% from 2021 to 2028. The growth is driven by the use of Automated Test Equipment (ATE) in the automotive and semiconductor industry. Significant increase in the number of connected devices and consumer electronics along with an increasing focus of the companies on quality improvement along with end-to-end testing solutions is expected to further drive the market. Implementation of ATE in semiconductor manufacturing companies to enhance the performance capability, speed of operation, and in turn, reduce the cost of semiconductor devices is expected to positively influence the growth.

Increasing adoption of System on Chip (SoC) and high demand for consumer electronics is expected to be the key driving force for the ATE market over the forecast period. Growing electronic components in the automotive sector and penetration of smartphones are expected to drive the market. Miniaturization has widened the scope of ATE application. Additionally, considerable technological advancements coupled with design complexity and the need for effective testing is expected to fuel the market.

Advancements in semiconductor manufacturing processes along with expansion of wireless networks in developing nations are expected to significantly drive the automatic test equipment market growth in the forthcoming years. Additionally, considerable technological advancements coupled with design complexity and the need for effective testing, are the factors expected to benefit the market expansion.

The recent technological advancements have significantly reduced the cost and time for manufacturing semiconductor IC and have increased profit margin for the companies. The ATE manufacturing companies constantly invest in R&D activities to enhance their product portfolio and to fit in with the latest improvement in semiconductor devices.

COVID-19 Impact Analysis

The COVID-19 pandemic has had an adverse impact on the several markets, and the ATE market is no exception. The stringent lockdowns implemented due to rapid spread of virus meant that the ATE market had to suffer from the production standpoint. From the demand perspective, the regulated demand from the IT & Telecom segment, especially during the second half of 2020 kept the demand for ATE products afloat in 2020. The ongoing trend of working remotely led to increased demand for connectivity and IT products, consequently driving the need for automated test equipment.

Product Insights

The non-memory ATE segment led the automated test equipment market and accounted for more than 66% share of the global revenue in 2020. Recent innovations in IoT devices and autonomous vehicles along with significant advancements in defense and aerospace sectors have drastically changed the market dynamics. Companies are focusing on enhancing customer satisfaction by ensuring faster time-to-market along with superior product quality and low testing costs. These factors act as significant growth drivers for the market.

The product segment is further segregated into non-memory, memory, and discrete automated test equipment. Increased complexities in semiconductor chip manufacturing needs a significant amount of test cost and time. Semiconductor companies focus on reducing the testing costs and consider outsourced equipment for the testing process instead of in-house development which is one of the primary factors driving the growth.

Vertical Insights

The IT and telecommunications ATE segment led the market and accounted for more than 48% share of the global revenue in 2020. Based on vertical, the market is categorized into automotive, consumer, aerospace and defense, IT and telecommunications, and others. The others segment includes Banking, Financial Services and Insurance (BFSI), entertainment, e-commerce, and medical. Increasing application of automatic test equipment in the semiconductor assembly and manufacturing industry is expected to drive the demand for ATE. The IT and telecommunication vertical is expected to have a significant market over the forecast period.

The demand for automated test equipment is driven mainly by the increasing ST production, complexity, and performance level of semiconductor devices used in 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. Increasing application in the semiconductor assemble and manufacturing industry is expected to drive the product demand.

Regional Insights

The Asia Pacific segment led the market and accounted for more than 75% share of the global revenue in 2020. The region is expected to dominate over the forecast period, attributed to the significant presence of semiconductor industries. China and Taiwan are expected to hold the maximum regional revenue share. Adaptive testing, advanced Design-For-Test (DFT), faster mixed-signal testers, fine-pitch probe cards, and design standards among others are the future technologies expected to significantly change the market dynamics. Increase in government initiatives by countries like China, Indonesia, Malaysia, Singapore, Thailand, and Taiwan to develop the advanced manufacturing processes is also expected to boost growth.

The North America region is anticipated to witness significant gains, in terms of revenue share, over the forecast period due to the increasing application of automated test equipment in the aerospace and defense sector.

Key Companies & Market Share Insights

The ATE market is consolidated, wherein the top players accounted for the majority of the market share in 2020. The companies such as Teradyne Inc. and Advantest Co., Inc. are identified as the prominent ATE providers. There is also significant growth regarding revenue for these companies which lead the market. At the same time, other players such as CHROMA ATE INC. and Aemulus Holdings Bhd have been marked as promising and emerging players in the global ATE industry.

Business expansion through strategic partnership and new service offerings is an important strategy adopted by the key players in the market. Additionally, new facility center expansion is also considered part of their key strategies, which would help these key ATE providers cater to the significantly growing demand for transportation and warehousing services. Some of the prominent players operating in the global automated test equipment market are:

• 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.

• Danaher Corporation

Automated Test Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global automated test equipment market report based on product, vertical, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Non-Memory ATE

  • Memory ATE

  • Discrete ATE

• Vertical Outlook (Revenue, USD Million, 2017 - 2028)

  • Automotive

  • Consumer

  • Aerospace & Defense

  • IT & Telecommunications

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America 

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • Taiwan

    • Thailand

    • Singapore

    • Malaysia

  • South America

    • Brazil

  • Middle East & Africa