Automotive Emission Test Equipment Market

Market Overview

The global automotive emission test equipment market size was valued at USD 756.58 million in 2023. It is projected to reach USD 1126.36 million by 2032, growing at a CAGR of 5.1% during the forecast period (2024–2032).

Vehicle effectiveness is evaluated and guaranteed through specialized test equipment for the automotive industry. Automobile test equipment can help keep a vehicle running smoothly and reliably for many more miles. It includes everything needed to test the functionality and performance of a vehicle to identify any issues. Carbon dioxide (CO2), carbon monoxide (CO), nitrous oxide (N2O), and methane (CH4) emitted by automobiles and other road vehicles is a significant contributor to global warming (CH4). Those gases are a major contributor to the current and future unfavorable climatic and socioeconomic trends. Passenger cars are automobiles designed to carry passengers. Automotive test equipment is in high demand due to the increasing need to ensure that mass-produced vehicles conform to all applicable safety and environmental regulations worldwide.

Market Dynamics

What are the Driving Factors for Automotive Emission Test Equipment?

Developing Transportation Sector

Different modes of transportation allow people to travel to geographically distant locations, such as society's commercial and residential centers. The transportation industry is a lifesaver when it comes to moving around, whether for business or pleasure. Transportation facilitates interactions between firms and their suppliers, competitors, and customers. For a country to develop and advance, it must invest in its transportation infrastructure. Access to more markets is one of the many benefits of an efficient transportation system, which boosts the economy and creates more opportunities for employment and investment. Greenhouse gases such as carbon dioxide, carbon monoxide, nitrous oxide, and others are released into the atmosphere, disrupting the planet's natural balance and leading to global warming and ozone depletion.

Strong Political Agendas and Stringent Regulations to Limit Greenhouse Emissions

The expansion of transportation modes and related socioeconomic growth is anticipated to increase hazardous particulates and greenhouse gas emissions. Carbon dioxide and carbon monoxide are examples of greenhouse gases widely recognized as among the most dangerous because of the severe ecological imbalance they cause. Reduced vehicle emissions of greenhouse gases are attracting widespread interest and concern. Greenhouse gas emissions are being closely monitored by both for-profit and non-profit organizations and government-run boards and authorities. Vehicle emissions of gases and particulates are a significant contention among political groups. The governments of the member states of the European Union (EU) are taking separate but complementary measures to reduce emissions and control emissions of particulate matter from motor vehicles.

What are the Main Factors that are limiting the Market for Automotive Emission Test Equipment?

Non-Adherence to Stringent Vehicle Emission Testing Norms

Climate change has been a significant source of concern for people all over the globe. Vehicle exhaust contributes significantly to air pollution and greenhouse gas emissions. Carbon monoxide, hydrocarbons, nitrogen oxides, and other small particles are released at high rates as they age. One of the primary causes of death from polluted air is nitrogen oxides emitted by diesel engines. It has been found that the emissions of nitrogen oxides from light commercial vehicles are higher under real-world conditions than they are under laboratory conditions. It is due to issues like sloppy upkeep, slow certification procedures, and the use of malfunctioning hardware. Several jurisdictions have enacted legislation to curb vehicle emissions, which significantly impact global pollution levels.

What are the Future Opportunities for Automotive Emission Test Equipment?

Growing Adoption of Advanced Technologies in the Automotive Industry

Identifying the source of emissions and developing methods to detect and measure them have become crucial in the automotive industry. Developing a sensor technology to meet these requirements and collect data on various gases is essential for preventing losses due to unintended emissions. A significant part of the solution to the problem of reliable vehicle emission detection is anticipated to come from developments in the Internet of Things (IoT). Together, emission sensors and other devices communicating via IoT networks can issue alerts whenever unsafe emissions are detected in a moving vehicle. With IoT technology's enhanced capabilities, emission testing equipment in the automotive industry is expected to rise in the coming years.

Regional Analysis

The global automotive emission test equipment market is bifurcated into four regions, namely North America, Europe, and Asia-Pacific.

North America Dominates the Global Market

North America is the most significant shareholder in the global automotive emission test equipment market and is expected to grow during the forecast period. Large economies like the United States and Canada help make North America the most prosperous region. The United States is a leading market adopter and driver in the area because it is home to numerous market participants. The EPA reports that the United States is responsible for 30% of all cars on the road and 50% of all vehicle emissions worldwide. Vehicles, for instance, can be equipped with a wide range of Internet of Things devices run by AI (AI). Regional market participants may find opportunities in the research and development of electric emission control devices fueled by such systems.

Asia-Pacific is expected to grow during the forecast period. The region is an important center for the manufacturing of automobiles. Vehicle sales in the area have risen thanks to rising consumer purchasing power. Additionally, many OEMs have either built the production facilities themselves or collaborated with domestic vehicle manufacturers due to the low production cost and availability of cheap labor. As a result of rising standards for safety and technological development, the Asia-Pacific region, which is already home to automotive test equipment's primary suppliers, is forecast to become the fastest-growing market worldwide.

Europe is the center of global industry, and the European market for automotive emission test equipment is the largest in the world. Several large automakers have a local presence in this area. As a result of the region's acceptance of safety certification, local manufacturers are also actively providing excellent safety features that are tested according to numerous safety criteria. The United Kingdom, Germany, and the Netherlands are among the first European Union member states to implement strict regulations and testing standards for vehicle emissions.

Segmental Analysis

The global automotive emission test equipment market is segmented by solution and application.

Based on the solution, the global automotive emission test equipment market is bifurcated into emission test equipment, emission test software, and emission test services.

The emission test equipment segment is the highest contributor to the market and is expected to grow during the forecast period. Many global automakers have increased their requests for automotive emission test systems, contributing to the market's expansion. The other market is expanding due to technological developments in vehicle emission diagnostic systems, such as onboard diagnostic tools. These checks help guarantee that the exhaust systems of automobiles are functioning within acceptable parameters. Increasing interest in service trades, especially in developing countries, is also fueling the expansion of this market.

Based on application, the global automotive emission test equipment market is bifurcated into periodic testing inspections and inspection & maintenance.

The periodic testing inspections segment is the highest contributor to the market and is expected to grow during the forecast period. European law mandates a strict protocol for routine inspections of all road-going vehicles to ensure their safety and reliability. All vehicles registered in a given member state must be subjected to regular checks at inspection stations approved by that state. Cars with high emissions, which can contribute significantly to urban air pollution, may be singled out by PTI emission checks. It's important to note that vehicles with technical issues and those whose emission systems have been tampered with are both included in this category of highly high-emitting vehicles.

Recent Developments

• July 2022- Applus+ has purchased K2 Ingeniera, a Colombian environmental consulting firm.
• September 2022- AVL Establishes New Hydrogen and Fuel Cell Testing Facility in Graz