Surge in Connected Devices to Drive the Demand for Global Automated Test Equipment Market

Automatic test equipment (ATE) is automated machinery that performs and analyses the results of functionality, effectiveness, dependability, and stress tests on electronic systems and devices. ATE robotizes traditionally manual electronic test equipment and processes with minimal human intervention. It tests various electronic devices currently in use to ensure their efficiency, operability, and the protection of those who will use them or who will directly or indirectly benefit from their use.

The rising need for industries to cut costs to eliminate significant damage losses and enhance customer satisfaction is a major factor driving market expansion. ATE is used to identify flaws in Devices Under Test (DUT) and contributes to ensuring device quality. The market demand is driven by a substantial increase in the number of consumer electronics and a growing emphasis on quality improvement among businesses.

The utilization of test equipment effectively in the semiconductor and automotive industries is the primary growth driver of the ATE market. Implementing ATE with multiple features, including optimal quality potential and frequency, can reduce the cost of the semiconductor device. Furthermore, technological advancements, the complexity of designs, and the need for effective testing are driving the expansion of the ATE market.

Market Dynamics

Growth in Consumer Electronics and the Surge in Connected Devices to Drive the ATE Market

The increase in smartphone sales primarily drives the expansion of the consumer electronics industry. In the coming years, technological advancements and the introduction of 5G technology will fuel the smartphone market. In the fourth quarter of 2020, smartphone manufacturers shipped approximately 394 million units worldwide, compared to 354 million units in the first quarter of 2021. Global shipments increased by 20% year-over-year during the first quarter of 2021, reaching 354 million units.

In addition, there is growing consumer demand for products with greater flexibility, higher quality, and new features at lower prices, which has increased ATE market demand. It is envisioned that by 2025, nearly 80% of the population will own mobile devices. To stay competitive in the marketplace, businesses are placing a greater emphasis on customer service and satisfaction, which is a crucial success factor. Before packaging and selling the final product to the end-user, businesses conduct end-to-end device testing.

Furthermore, the proliferation of smartphones has contributed to the increased demand for semiconductors, which has increased the demand for automatic test equipment (ATE). Smartphones undergo battery tests during the initial performance evaluation phase to address heating and stability concerns. Priority has been placed on testing battery life during the design phase to resolve any battery life-related issues before production. In addition, testing difficulties continue to increase due to technological advancements and the development of techniques like carrier aggregation for LTE, Bluetooth, GNSS receivers, and wireless LAN. These factors are major growth drivers for the ATE market.

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Impact of COVID-19

The noble coronavirus negatively impacted the automated test equipment market. The government declared lockdowns, resulting in the cessation of production, the closure of all work environments, the restriction of public interactions, and the temporary termination of manufacturing and trading activities worldwide. The market's operations were disrupted by implementing the lockdown and public interaction.

In the initial phase of 2020, the entire supply chain was disrupted by the temporary shutdown of multiple manufacturing facilities and labor shortages. During the first few months of the lockdown (the first and second quarters of 2020), the imbalance between supply and demand and movement restrictions negatively impacted market growth.

Gradually, as economies adopted strategies to combat the effects of covid, the market for ATE began to recover. After recovering from the coronavirus outbreak, ATE companies increased their cognitive capabilities, artificial intelligence, and robotic process automation investments. In addition, the businesses developed effective crisis management strategies, such as focusing on products and services of the next generation and strengthening long-term contracts.

Regional Insights

Asia-Pacific and North America are anticipated to account for the most significant market shares during the forecast period. Asia-Pacific will account for USD 7,657 million at a CAGR of 4%, whereas North America will account for USD 1,639 million at a CAGR of 3%.

The significant presence of semiconductor industries in Asia-Pacific is the primary reason for the region's dominance over the forecast period. A rise in the number of government initiatives undertaken by China, Indonesia, Singapore, Thailand, Malaysia, and Taiwan to develop more advanced manufacturing processes will also contribute to economic expansion. Further, China and Taiwan are anticipated to account for the largest regional revenue share. Future technologies such as adaptive testing, advanced Design-For-Test (DFT), fine-pitch probe cards, and design standards significantly alter the market dynamics. It is envisioned that these technologies will play a significant role.

North America will experience substantial growth due to the expanding employment of automated test equipment in the aerospace and defense industries. The companies in the market prioritize forming partnerships and collaborations and expanding into new geographies.

Key Highlights

  • The global automated test equipment market was valued at USD 7,125 million in 2021. It is expected to expand at a CAGR of 3% to reach USD 9,297 million during the forecast period (2022–2030).
  • Based on type, logic testing is anticipated to have the highest market value of USD 5,089 million at a CAGR of 3% by 2030.
  • Based on vertical, IT and telecom vertical is expected to generate the highest value of USD 4,908 million at a CAGR of 4% by 2030.
  • Region-wise, Asia-Pacific will be the most dominant region and account for a market value of USD 7,657 million at a CAGR of 4% during the forecast period.

Competitive Players in the Market

Key players in the global automated test equipment market are Teradyne Inc., Advantest Corporation, Chroma ATE Inc., Teradyne Inc., Advantest Corporation, Chroma ATE Inc, Teradyne Inc., Advantest Corporation, VIAVI Solutions Inc., Keysight Technologies, Astronics Corporation, Teradyne Inc., Advantest Corporation, and Chroma ATE Inc.

Market News

  • In 2022, Teradyne Inc. announced the shipment of the 7000th unit of its industry-leading J750 semiconductor test platform to Nations Technologies, a leading Chinese microcontroller unit, and security integrated circuit chip maker.
  • In 2022, Advantest Corporation launched a compact test station for the V93000 Platform, enabling a capacity increase in IC engineering labs.
  • In 2022, Advantest Corporation to collaborate with Synopsys to deliver real-time data analytics for semiconductor tests.
  • In 2022, Chroma ATE Inc. acquired ESS to further expand the semiconductor testing market.

Global Automated Test Equipment Market: Segmentation

By Type

  • Logic Testing
  • Printed Circuit Board (PCB) Testing
  • Interconnection and Verification Testing

By Vertical

  • Automotive
  • Consumer
  • Aerospace and Defence
  • IT and Telecom
  • Others

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle East and Africa

" Crucial Insights The Report Provides:"

* Known and Unknown Adjacencies Influencing the Growth of Market

* Explorable Revenue Sources

* Customer Behaviour Analysis

* Target Partners

* Customized Geographical Data Based on Customers as well as Competitors

* Analysis of Market Size and CAGR between the Forecast Periods

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