- Summary
- Table Of Content
- Methodology
Automated Test Equipment Market Size:
Automated Test Equipment Market size is estimated to reach over USD 13,325.75 Million by 2032 from a value of USD 9,007.09 Million in 2024 and is projected to grow by USD 9,291.71 Million in 2025, growing at a CAGR of 5.4% from 2025 to 2032.
Automated Test Equipment Market Scope & Overview:
Automated test equipment refers to the system which comprises of software and hardware components for testing semiconductors, electronic components, and other devices for ensuring improved functionality and performance. Further, automated testing equipment offers various benefits such increased efficiency by automating complex testing processes, improving accuracy, enhancing reliability, and others. Additionally, it is used in various industries including semiconductor fabrication, automotive and transportation, consumer electronics, telecommunications, medical, aerospace & defense, and others.
Automated Test Equipment Market Dynamics - (DRO) :
Key Drivers:
Rising utilization of automatic test systems in automotive sector is driving the automated test equipment Market growth
There is an increasing advancement in automotive sector in terms of electronic components and automobile systems, which is driving the adoption of automatic test equipment. Further, the use of automatic test equipment in automotive sector for testing application offers various benefits including reduced testing time, enhanced quality assurance, regulatory compliance, reduced costs, and others. Additionally, automatic test equipment helps automobile manufacturers to simulate extreme climate conditions and validate the product durability
- For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), approximately 10,611,555 units of automobiles were produced in the United States in 2023, witnessing a significant rise of 6 percent as compared to 2022. This is further, driving the utilization of automatic test systems during automobile production for testing various automobile components and systems.
Thus, the rising utilization of automatic test systems during automobile production is driving the automated test equipment Market size.
Key Restraints:
Factors including high initial cost, maintenance cost, and others are restraining the automated test equipment Market growth
The primary restraining factors associated with automatic test equipment include high initial setup cost, frequent maintenance costs, and others. Further, the initial high cost is required for advanced hardware instruments and customized software as per the requirement.
Moreover, maintenance and setting costs increases the overall operational costs for small and medium-sized manufacturers. In addition, complex systems and products require different types of testing such as electrical testing, functional testing, environmental testing, and others, which significantly increases the cost of operation. Thus, the above factors are further restraining the automated test equipment Market expansion.
Future Opportunities :
Rising adoption of automatic test equipment in aerospace & defence sector is expected to drive the automated test equipment Market opportunities
There is an increasing adoption of automatic test equipment in aerospace and defense sector for identifying the malfunctions and defects in aircraft components before they are deployed and operated. Further, in aerospace and defense, equipment and systems are complex and have to meet stringent reliability and performance standards. Additionally, various types of testing processes are used such as environmental testing by replicating real world scenarios and conditions for verifying product quality.
- For instance, according to the Invest India, the Government of India allocated USD 71.7 Billion in defence manufacturing, which is expected to drive the utilization of automatic test equipment in aerospace sector.
Thus, as per the automated test equipment Market analysis, rising investments in aerospace and defense sector are driving the global automated test equipment Market opportunities.
Automated Test Equipment Market Segmental Analysis :
By Component:
Based on the component, the Market is segmented into hardware and software.
Trends in the Component:
- There is an increasing trend towards utilization of automatic test equipment in semiconductor fabrication process.
- Increasing utilization of automatic test systems and software for remotely identifying defects and errors.
Hardware segment accounted for the largest revenue in the total automated test equipment Market in 2024.
- Hardware in ATE refers to digital multi-meters, LCR meters, digital storage oscilloscopes, vector signal generators, arbitrary waveform generators, and others.
- Further, ATE hardware interface allows for testing of electronic components for optimizing operational speed.
- Additionally, modern hardware ATE is used for various application including automotive, aerospace & defense, electronic components, and others.
- For instance, Delta Electronics offers automatic test instruments in its product offerings. It provides various products including EV automatic test system, EV car automatic test system, and power supply automatic test system.
- Thus, the rising advancements associated with automatic test instruments are driving the automated test equipment Market trends.
Software is anticipated to register a significant CAGR growth during the forecast period.
- ATE software refers to a software program which is specifically designed for various applications including automating the testing process, collecting and analysing data, and ensuring accuracy in evaluating electronic circuits and systems.
- Moreover, ATE software can be used in various applications including semiconductor testing, aerospace & defense, consumer electronics, and others.
- For instance, A.T.E. offers ViewAXIS Mega vision system which comprises of testing software and hardware components for detecting print defects on the web and initiating corrective actions.
- Thus, the rising utilization of automatic testing software are driving the automated test equipment Market trends.
By Testing Type:
Based on the testing type, the Market is segmented into electrical testing, functional testing, and environmental testing.
Trends in the Testing Type:
- There is an increasing trend towards utilization of electrical testing in automotive sector for detecting defects in battery systems of vehicles.
- Rising adoption of environmental testing in various environmental conditions such as electromagnetic interference, temperature extremes, humidity, and vibration.
Electrical testing segment accounted for the largest revenue share in the total automated test equipment Market share in 2024.
- Electrical testing refers to various types of testing such as continuity testing, insulation resistance testing, ground resistance testing, voltage testing, and earth leakage testing for verifying electrical system.
- Further, electrical testing offers various benefits including identification of electrical hazards, increased efficiency in finding and fixing problems, meeting regulatory compliance, and others.
- For instance, in July 2024, GW Instek launched GPT-15012 Electrical Safety Analyzer, which can carry out automatic tests as well as manual tests.
- Thus, the rising advancements in electrical testing are further driving the automated test equipment Market size.
Functional testing is anticipated to register a substantial CAGR during the forecast period.
- Automated functional testing is used for verifying an application's functionality using automated scripts and tools for verifying actual outcomes with the expected results.
- Further, it includes various types of tests such as smoke testing, regression testing, integration testing, unit testing, end-to-end (E2E) testing, sanity testing, and others.
- Moreover, automated functional testing offers various benefits such as increased speed of testing process and the number of test cases.
- For instance, Worksoft offers functional testing in its product offerings. It offers various features including integration with performance testing and improved management solution.
- Thus, the rising adoption of functional testing for detecting errors in applications functionality are driving the automated test equipment Market expansion.
By Application:
Based on the application, the Market is segmented into printed circuit board, integrated circuits, and others.
Trends in the Application:
- Rising utilization of automatic testing equipment for testing printed circuit board for complex systems.
- Increasing adoption of automatic test system for detecting defects in high performance and miniaturized ICs.
Integrated circuits segment accounted for the largest revenue share of 44.23% in the total automated test equipment Market share in 2024.
- Automatic test equipment is used to evaluate and validate the performance, functionality, and reliability of integrated circuits at various stages of production and deployment.
- Further, automatic test equipment offers various benefits such as high speed testing, enhanced precision & accuracy, and reduced cost.
- For instance, in October 2022, Chroma ATE Inc. launched Chroma 3650-S2 high-performance power IC test platform with enhanced power measurement features.
- Thus, as per the analysis, the rising advancements in automatic test equipment for testing ICs are driving the Market demand.
Printed circuit board segment is anticipated to register a substantial CAGR growth during the forecast period.
- Automatic testing equipment provides an efficient way for testing high complex devices and testing large systems.
- Automatic testing of printed circuit board offers various benefits including reduced testing time, less errors in the product, and improved product reliability.
- For instance, in November 2024, Pickering launched high-density reed relay Series 125 which maximises PCB real estate for automated test equipment switching multiplexers or matrices.
- Thus, as per the analysis, the rising advancement in automatic test system for printed circuit boards are projected to boost the Market demand during the forecast period.
By End-User:
Based on the end-user, the Market is segmented into automotive, electronics & semiconductor, manufacturing, healthcare, aerospace and defense, and others.
Trends in the End-User:
- There is a rising trend towards utilization of automatic test equipment in electronics sector for detecting production errors of electronic components.
- Increasing adoption of automatic test system in automotive sector for verifying power supply in electric vehicles.
Electronics & semiconductor segment accounted for the largest revenue share in the total Market in 2024.
- Automatic test equipment is an efficient way for testing high complex devices and testing large systems.
- Automatic test equipment offers various benefits including reduced testing time, less errors, and improved product reliability.
- Further, automatic testing equipment is used in various industries including electronic industry for testing electronic components.
- For instance, in February 2024, Tata Electronics partnered with PSMC (Powerchip Semiconductor Manufacturing Corporation) for building a semiconductor fabrication facility in India. This is further expected to drive the adoption of automatic test systems.
- Thus, as per the analysis, the rising utilization of automatic test system to verifying defects in electronics components are driving the automated test equipment Market.
Aerospace and defense segment is anticipated to register a substantial CAGR growth during the forecast period.
- The aerospace and defense sector is among the primary end users of automatic testing equipment for ensuring production quality.
- Further, automatic testing equipment helps in identifying defects and malfunctions in aerospace & defense systems before they are deployed in the ground.
- Additionally, automatic test equipment is used in aerospace and defense sector for reducing dependence on the original equipment manufacturers and maintenance downtime.
- For instance, in October 2024, the Government of India allocated USD 72 billion in its budget for defense sector.
- Thus, as per the analysis, the rising investments in aerospace and defense sectors are projected to drive the automated test equipment Market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 2,465.75 Million in 2024. Moreover, it is projected to grow by USD 2,550.83 Million in 2025 and reach over USD 3,771.19 Million by 2032. Out of this, China accounted for the maximum revenue share of 34.2%.
As per the automated test equipment Market analysis, there is an increasing adoption of automated test equipment, particularly in countries such as China, India, and Japan, due to rising investment in manufacturing automobiles and electronic products. The rapid development and growing public and private investments into automotive, electronics, semiconductor, and others sectors are accelerating the automated test equipment Market.
- For instance, in September 2024, the Government of India approved the proposal of Kaynes Semicon Pvt Ltd for setting up a semiconductor plant. This is further driving the adoption of automatic test systems, which is projected to boost the Market in the Asia-Pacific region.
North America is estimated to reach over USD 4,666.68 Million by 2032 from a value of USD 3,153.53 Million in 2024 and is projected to grow by USD 3,253.24 Million in 2025.
In North America, the growth of automated test equipment industry is driven by the rising investment in aerospace & defense sector. Rising adoption of automatic test systems in identifying defects of aerospace products are also driving the Market. Further, the increasing investment in developing independent military infrastructure is driving the adoption of automated test systems, which is contributing to the growth of automated test equipment Market demand.
- For instance, according to the Department of Defense, the U.S. Government allocated USD 132.8 Billion for air force department in its defense sector. This is further expected to drive the adoption of automatic test systems, which in turn is projected to boost the Market in North America during the forecast period.
The regional analysis depicts that the rising investments in R&D activities and technological advancements in automotive, electronics, and other industries are further driving the automated test equipment Market demand in Europe. Further, as per the Market analysis, the primary factors driving the Market growth in the Middle East and African region includes increasing investment in manufacturing industry and development of modern technological infrastructure. The rising advancements in semiconductor fabrication and electronics production are further driving the Market demand in the Latin America region.
Top Key Players and Market Share Insights:
The automated test equipment Market is highly competitive with major players providing products to the national and international Markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global automated test equipment Market. Key players in the automated test equipment industry include -
- Astronics Corporation (U.S.)
- Mechatronic GMBH (Germany)
- TBG Solutions (U.K.)
- Chroma ATE (China)
- Omron (Japan)
- Teradyne (U.S.)
- National Instruments (U.S.)
- Advantest (Japan)
- Roos Instruments (U.S.)
- Cohu Inc. (U.S.)
Recent Industry Developments :
Product Launch:
- In January 2025, Vitrek launched test automation software, which has Vitrek’s 95x, 98x and V7x series of hipot testers and 964i high-voltage switches for simplifying test designs.
Automated Test Equipment Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 13,325.75 Million |
| CAGR (2025-2032) | 5.4% |
| By Component |
|
| By Testing Type |
|
| By Application |
|
| By End-User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the automated test equipment market? +
The automated test equipment market was valued at USD 9,007.09 Million in 2024 and is projected to grow to USD 13,325.75 Million by 2032.
Which is the fastest-growing region in the automated test equipment market? +
Asia-Pacific is the region experiencing the most rapid growth in the automated test equipment market.
What specific segmentation details are covered in the automated test equipment report? +
The automated test equipment report includes specific segmentation details for component, testing type, application, end-user, and region.
Who are the major players in the automated test equipment market? +
The key participants in the automated test equipment market are Astronics Corporation (U.S.), Mechatronic GMBH (Germany), Teradyne (U.S.), National Instruments (U.S.), Advantest (Japan), Roos Instruments (U.S.), Cohu Inc. (U.S.), TBG Solutions (U.K.), Chroma ATE (China), and Omron (Japan).
