Automotive Test Equipment Market Size, Share & Trends Analysis Report By Product, By Vehicle (Passenger, Light Commercial, Heavy Commercial), By Application Tools, By Region, And Segment Forecasts, 2025 - 2030

Automotive Test Equipment Market Trends

The global automotive test equipment market size was valued at USD 2.78 billion in 2024 and is expected to expand at a CAGR of 5.2% from 2025 to 2030. This growth is attributable to the development of Electric Vehicles (EVs), advancements in autonomous driving technologies, and the need for stringent safety and performance testing. In addition, growth is further driven by the rapid evolution of automotive technologies and increasing regulatory requirements. 

The increasing adoption of EVs has further driven the automotive test equipment industry. As automakers shift their focus to EVs, there is a growing demand for specialized testing equipment that can evaluate critical components such as batteries, motors, and power electronics. Testing solutions that assess battery performance under various conditions are essential for ensuring the safety and reliability of EVs. This trend reflects a broader industry movement toward sustainable transportation solutions, necessitating advanced testing methodologies to meet evolving consumer and regulatory expectations.

Furthermore, the development of autonomous vehicles requires sophisticated testing equipment capable of simulating real-world driving scenarios. This includes Hardware-In-The-Loop (HIL) and Software-In-The-Loop (SIL) systems that allow engineers to test vehicle responses to a variety of situations without physical prototypes. Such technologies are crucial for validating the safety and functionality of autonomous systems before they are deployed on public roads.

Moreover, regulatory pressures surrounding vehicle emissions and safety standards have intensified the need for comprehensive testing solutions. Governments worldwide are implementing stricter regulations to reduce emissions and enhance vehicle safety. This has led to increased investments in automotive test equipment that can accurately measure emissions and assess safety features, such as Advanced Driver Assistance Systems (ADAS). As manufacturers strive to comply with these regulations while maintaining competitiveness, the demand for reliable testing equipment is expected to continue rising through the coming years.

Product Insights

The chassis dynamometer segment dominated the automotive test equipment industry with the largest revenue share of 38.0% in 2024 due to its critical role in testing vehicle performance. Accurate measurements of power, torque, and emissions are essential for compliance with stringent regulatory standards, which has driven the market. For instance, chassis dynamometers are widely used in EV testing to evaluate battery efficiency and overall vehicle dynamics under simulated driving conditions. Moreover, the rise in global vehicle production and the growing emphasis on quality assurance further enhance the need for chassis dynamometers, as they facilitate thorough testing during vehicle development and manufacturing processes.

The wheel alignment tester segment is expected to grow at the fastest CAGR over the forecast period, driven by the increasing focus on vehicle safety and performance. As more consumers recognize the importance of proper wheel alignment in enhancing fuel efficiency, reducing tire wear, and improving handling, the demand for wheel alignment services is rising. In addition, vehicle ownership and maintenance activity growth, particularly in emerging markets, further propels this segment's expansion. The integration of advanced technologies, such as computerized alignment systems that provide real-time data and diagnostics, also contributes to the segment's rapid growth by offering enhanced accuracy and efficiency in service delivery.

Vehicle Insights

The passenger vehicle segment dominated the market with the largest revenue share in 2024 due to the rise in global vehicle production, particularly in passenger cars, which necessitated advanced testing equipment to ensure compliance with stringent safety and emissions regulations. In addition, the growing consumer preference for EVs further fuels this segment's growth, as manufacturers require testing solutions tailored for EV components such as batteries and electric motors. The rise in vehicle registrations, highlighted by a 3.9% increase in new car registrations in Europe during early 2024, reflects the expanding market for passenger vehicles, which enhances the demand for automotive test equipment across various applications.

The light commercial vehicle segment is expected to grow significantly over the forecast period due to the rapid expansion of e-commerce and the increasing demand for efficient last-mile delivery solutions. As online shopping continues to rise, businesses require agile vehicles that can navigate urban environments and deliver goods promptly. For instance, the growth of platforms such as Amazon has led to an increase in demand for Light Commercial Vehicle (LCVs), which are ideal for urban logistics due to their compact size and portability. In addition, government incentives promoting EVs are encouraging manufacturers to develop eco-friendly LCVs, aligning with consumer preferences for sustainable transportation.

Application Tools Insights

The handheld scan tool segment dominated the automotive test equipment industry with the largest revenue share in 2024 due to its convenience, versatility, and growing demand for efficient diagnostics. These tools allow technicians to quickly access vehicle data and troubleshoot onsite issues, significantly reducing repair shop downtime. For instance, a handheld scan tool can instantly read Diagnostic Trouble Codes (DTCs) and provide real-time data on engine performance, enabling mechanics to identify problems more swiftly. The increasing complexity of modern vehicles, equipped with advanced electronic systems, further drives the need for portable diagnostic solutions that can adapt to various models.

The mobile device-based scan tool segment is expected to grow at the fastest CAGR over the forecast period due to the increasing adoption of advanced technology and convenience of automotive diagnostics. These tools leverage smartphones and tablets to provide real-time vehicle data, enabling users to perform diagnostics quickly and efficiently from anywhere. For instance, a mobile scan tool can connect to a vehicle's onboard diagnostics system via Bluetooth, allowing technicians to read error codes and monitor performance metrics directly on their devices. The rise in consumer awareness regarding vehicle maintenance and the growing preference for DIY solutions further drive demand for these portable diagnostic tools.

Regional Insights

The North America automotive test equipment market is expected to grow significantly over the forecast period, as the region is home to major automotive manufacturers and suppliers who heavily invest in research and development to meet evolving demands and regulatory standards. For instance, the push toward EVs and ADAS drives the need for sophisticated testing equipment to ensure safety and performance compliance. In addition, stringent regulations imposed by agencies such as the National Highway Traffic Safety Administration (NHTSA) mandate comprehensive testing for emissions and safety, further driving the demand for advanced automotive test equipment.

U.S. Automotive Test Equipment Market Trends

The U.S. automotive test equipment market dominated North America in 2024, driven by the rapid advancement of automotive technologies and stringent regulatory requirements. In addition, the increasing complexity of vehicles, particularly with the rise of electric and autonomous vehicles, necessitates sophisticated testing solutions to ensure safety and compliance. For instance, manufacturers must utilize advanced testing equipment to evaluate battery performance and the functionality of autonomous systems, which are critical for meeting safety standards. The growing emphasis on environmental regulations has also led to heightened demand for emissions testing equipment, further propelling market growth.

Europe Automotive Test Equipment Market Trends

The Europe automotive test equipment market is expected to grow significantly over the forecast period due to the increasing adoption of EVs and stringent environmental regulations. As the European Union intensifies its efforts to reduce carbon emissions, automakers are compelled to invest in advanced testing solutions to ensure compliance with these regulations. Moreover, the presence of established automotive manufacturers in countries such as Germany and France further supports the growth of the automotive test equipment industry, as these companies prioritize innovation and quality assurance in their production processes.

Asia Pacific Automotive Test Equipment Market Trends

The Asia Pacific automotive test equipment market dominated the global market with the largest revenue share of 42.0% in 2024. This growth can primarily be attributed to the region's robust automotive manufacturing base and high vehicle production. Countries such as China and India have established themselves as key players in the automotive industry, driven by a growing middle class and rising demand for vehicles. For instance, in September 2024, India produced over 2.7 million vehicles, reflecting the increasing domestic demand. In addition, the shift toward EVs is prompting manufacturers to invest heavily in advanced testing equipment to ensure compliance with safety and performance standards. The presence of major automotive manufacturers and suppliers in the region further enhances the demand for testing solutions as they seek to maintain the high quality and reliability of their products.

The China automotive test equipment market dominated Asia Pacific in 2024 with the largest revenue share, driven by the country's rapid growth in electric vehicle production and stringent regulatory standards. As China leads the global transition to EVs, manufacturers are increasingly investing in advanced testing equipment to ensure compliance with safety and performance regulations. For instance, the Chinese government has implemented policies that promote the development of new energy vehicles, resulting in significant investments in testing solutions tailored for EV components, such as batteries and electric drivetrains. In addition, the growing automotive industry in China, highlighted by the production of over 26 million vehicles in 2023, necessitates robust testing capabilities to maintain high-quality standards and meet consumer safety expectations. Along with substantial government support for research and development in automotive technologies, these factors position China as a key player in the automotive test equipment industry and are expected to drive substantial growth in the coming years.

Key Automotive Test Equipment Company Insights

Some key players in the automotive test equipment market are Robert Bosch GmbH, Siemens, Continental AG, and Honeywell International Inc. These employ various strategies to maintain a competitive edge, including the development of advanced testing solutions that integrate cutting-edge technologies, such as artificial intelligence, and Internet of Things (IoT) capabilities. They focus on enhancing efficiency and accuracy in vehicle diagnostics and performance evaluations, addressing the growing demand for reliable testing in the evolving automotive landscape, particularly with the rise of electric and autonomous vehicles.

• Robert Bosch GmbH specializes in providing comprehensive automotive testing solutions that incorporate innovative technologies to enhance vehicle safety and performance. By leveraging its extensive expertise in engineering and diagnostics, the company delivers advanced testing systems that meet stringent regulatory requirements while supporting manufacturers in developing next-generation vehicles. This commitment to innovation positions Robert Bosch as a leader in the automotive test equipment sector.

• Honeywell International Inc. is focused on delivering high-performance automotive test equipment designed to optimize vehicle testing processes. The company integrates advanced sensors and data analytics into its testing solutions, enabling real-time monitoring and analysis of vehicle performance metrics. By prioritizing technological innovation and efficiency, Honeywell intends to empower automotive manufacturers by ensuring compliance with safety standards while enhancing overall vehicle reliability.

Recent Developments

• In January 2025, AB Dynamics announced the introduction of automated capabilities within its Track Applications Suite, significantly enhancing the testing of Advanced Driver Assistance Systems (ADAS) for heavy vehicles. The automated system allows driving robots to manage complex tests, including challenging sensitivity scenarios that assess ADAS robustness in non-ideal conditions. In addition, AB Dynamics' Post Processor software provides real-time results shortly after test completion, enabling immediate optimization of test programs based on actual performance data.

• In September 2023, Horiba Mira launched a new driving simulator center at its headquarters in Nuneaton, Warwickshire, representing a significant investment of over £4 million (approximately $5.0 million USD). This cutting-edge facility features the UK's first VI-Grade DiM250 Dynamic Simulator, designed to enhance vehicle attribute engineering by providing a safe and efficient environment for developing and optimizing vehicle performance. The simulator aims to reduce reliance on physical prototypes and testing, potentially avoiding up to 14,000 tons of carbon dioxide equivalent emissions per vehicle model. Focused on key attributes such as vehicle dynamics, noise, vibration, harshness, and ADAS, this center reinforces Horiba Mira's leadership in the automotive engineering sector.

Automotive Test Equipment Market Report Scope

Global Automotive Test Equipment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automotive test equipment market report based on product, vehicle, application tools, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Chassis Dynamometer

  • Engine Dynamometer

  • Wheel Alignment Tester

  • Vehicle Emission Test System

• Vehicle Outlook (Revenue, USD Million, 2018 - 2030)

  • Passenger Vehicle

  • Light Commercial Vehicle

  • Heavy Commercial Vehicle

• Application Tools Outlook (Revenue, USD Million, 2018 - 2030)

  • Handheld Scan Tool

  • Mobile Device-Based Scan Tool

  • PC/Laptop-Based Scan Tool

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE