The global automotive test equipment market was valued at USD 2.03 billion in 2017 and is expected to grow at a CAGR of 5.1% during the forecast period, 2019–2026.
Automotive industries needed mechanical data to verify computer-aided testing with parameters such as material rigidity, design stiffness, component testing, fatigue testing, and material forming. High performance and complete reliability are the key expectations from today’s automobiles. Thus, vehicle manufacturers, suppliers as well as testing labs on contract basis are focusing on developing secure and safe vehicle testing equipment. Their ultimate focus is on quality, performance, and reliability to meet business pressure in terms of reducing the time frame and controlling the cost associated with development. Moreover, advanced materials require accurate inspection as manufacturers are developing lighter and more fuel-efficient vehicles.
Automotive test equipment and systems are necessary for electrical testing, electronics vibration testing, functional testing, infotainment testing, and environmental testing as well as ensuring electronic reliability. Automotive testing encompasses an array of tests to gauge the fatigue strength of the complete vehicle, body parts, chassis, engine & powertrain, and electronics.
Increasing vehicle parc, coupled with innovations in vehicle electronics, drive the demand for automotive testing equipment to ensure vehicle performance and passenger and vehicle safety. Moreover, stringent emission standards that direct improvement in fuel efficiency and reduction in emissions and the time required for diagnosis are surging the demand for equipment and software in the automotive test equipment market, globally. However, the automotive testing equipment industry is expected to face challenges such as minimal awareness about testing equipment and their suppliers in developing and under-developed regions. For instance, “Qmax” is renowned for its IC and PCB testing in electronics circuitry, but vehicle manufacturers are unaware of the company’s testing services for the Electronic Control Unit (ECU), which – when implemented in vehicles – will pose a hurdle for this market.
The global automotive test equipment market can be segmented by type, vehicle type, and application tool.
On the basis of type, the market can be segmented into engine dynamometer, chassis dynamometer, vehicle emission test system, and wheel alignment tester.
On the basis of vehicle type, the market can be segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles.
On the basis of application tool, the market can be segmented into handheld tool, mobile device tool, and PC/laptop-based tool.
Geographically, the global automotive test equipment market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific leads the automotive test equipment market, owing to technological advancement, progressive improvement in safety systems, and increasing consumer awareness about safety issues. For instance, in November 2017, Ford established the new ‘Nanjing Test Center (NTC)’ with automotive testing equipment, which is capable of testing new vehicles manufactured in China. Moreover, it provides a hands-on learning environment for employees to collaborate, brainstorm, and develop prototypes.
After Asia Pacific, North America is expected to witness high growth in the automotive test equipment market during the forecast period. According to a news piece from August 2018, the ‘Ford Motor Company’ uses analyzers from ‘Grabner Instruments’, a subsidiary of AMETEK Inc., to check the performance of a vehicle under extreme operating conditions, including temperature, pressure, and altitude.
Europe is a prominent region in the automotive test equipment market due to the presence of various well-established automobile companies such as BMW, Mercedes, Audi, and Volkswagen in the region. Moreover, with the growing acceptance of safety certification, such manufacturers are now providing excellent safety features, which are adequately tested on the basis of every safety criterion.
The LAMEA region is also expected to witness significant growth in the automotive test equipment market due to the increasing demand for a safer, efficient, and convenient driving experience. The growing fatality rate, largely due to road accidents, has escalated the demand for efficient safety systems in the LAMEA region, which is further driving market growth.
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