Automated Test Equipment Market Size & Share 2024 - 2032

Automated Test Equipment Market Size

The automated test equipment market was valued at USD 9.6 billion in 2023 and is expected to grow at a CAGR of 9.8% between 2024 and 2032. 5G adoption has been steadily growing globally and is a major driving factor of the automated test equipment market. ATE supports the component and band testing of the 5G infrastructure, thus creating demand for this equipment with its expansion.

As per Ericsson, globally, the total number 5G subscribers in 2022 were reported to 999.7 million, which grew to 1,581 million in 2023. Also, governments across are actively investing to increase the 5G coverage in countries such as India, Vietnam, Great China, and Canada. This growing investment in 5G is expected to drive the demand for this testing equipment to ensure quick and good signal quality across various regions.
 

In-vehicle infotainment, advanced driving systems, and ADAS have become a new trend and necessity in modern vehicles. To ensure that these systems work efficiently, the automotive manufacturers are adopting automated testing equipment for testing the safety and smooth functioning of these systems. ADAS uses various sensors, Radar, and cameras for their effective performance. ATE helps in ensuring the safety and functionality of these systems to ensure they operate accurately when needed. The ADAS market was valued at USD 38.1 billion and is estimated to grow at a CAGR of 17% during the forecast year 2024-2032. 
 

Additionally, the ATE systems are being used to test electric and autonomous vehicles. In EVs, it is necessary for the automotive manufacturers to check that the battery systems operate on correct temperature and voltage. Automated test equipment helps ensure that the battery management system requirements are met as per the set standards, ensuring safety and smooth operations.
 

Automated Test Equipment Market Trends

• There has been a steady growth in the adoption of AI and ML technologies in the automated test equipment systems. AI and ML are being adopted as it helps reduce the testing time, improve accuracy of the output and optimize test cycles.
   
• In September 2024, ASE Technology Holding Co. launched their new testing facility in California. This facility was launched to meet the increasing demand for semiconductor testing supported by advancements in high performance computing and AI technology
   
• In addition to these features, these technologies help in predictive maintenance and help predict any issues or probable failures in the testing equipment. This can help users take preventive action and reduce any down time in the testing process.
   
• Microservice testing is another trend in the automated test equipment market. Under this, the testing is done for an individual software or part rather than testing the entire infrastructure or product. This is leading to improved quality of individual part and saves the time spent testing entire product or software.
   
• Cloud computing and remote access solutions are being integrated in the advanced test equipment. This is gaining traction as people across globe can access and get real time insights in the testing process and make changes to their products and services without the need of waiting for results for long.
   

Automated Test Equipment Market Analysis

Based on ATE, the automated test equipment market is segmented as memory ATE, non-memory ATE, discrete ATE, and others. In 2023, non-memory segment held a substantial share and was valued at USD 3.8 billion and is expected to grow at a CAGR of 10% during the forecast period.
 

• Consumer electronic products are majorly tested using the non-memory ATEs. In June 2024, total sales of consumer electronic products which include computing and gaming equipment, drones, telephony, TV, radio, and multimedia devices, and TV peripheral devices grew from 7,927 million in 2022 to 8,172 million in 2023. This number further grew to 8,277 million in 2024 and is further expected to grow to 9,007 million in 2029.
   
• This rising sale of electronics is in turn leading to growing production and demand for efficient testing equipment for their smooth operations. Growing sales of consumer electronics are contributing to the growing demand for non-memory automated test equipment.
   
• Additionally, the non-memory test equipment is used in automotive and telecommunication industries as these devices provide the option of customized testing and is more versatile than other testing types, making it a preferred option for testing.
   

Learn more about the key segments shaping this market

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Based on end use industry, the automated test equipment market is segmented into aerospace & defense, consumer electronics, IT & telecommunications, automotive, and others. The consumer electronics segment accounted for over 36% of the market share in 2023 and is expected to grow at a rate of 9.9% till 2032.
 

• The consumer electronics industry is growing at a steady rate due to the growing demand for electronic products such as laptops, PCs, and smartphones which are increasingly being used for personal as well as office use.
   
• Additionally, the gaming industry has become mainstream in the past years, as governments of various countries are acknowledging it as a sport. This is also creating demand for gaming products, which depends on automated testing equipment for smooth operations.
   
• In 2022, according to Statista’s report the total sale of gaming equipment stood at 24.1 million pieces which further grew to 24.4 million in 2024. This rise in sales is creating demand for robust testing equipment, such that the manufacturers meet the quality standards in time and lower failure rate. Automated testing equipment meets these standards as it provides higher accuracy, detects bugs faster, and saves cost.
   
• With the growing adoption of smart devices, the demand for this testing equipment is expected to grow further as these devices need to meet security and connectivity tests for their smooth operations
   

Based on product, the automated test equipment market is segmented as functional testers, in-circuit testers, mixed-signal testers, radio frequency testers, optical testers, and others. The functional tester segment is expected to hold a major share.
 

• The functional testers are majorly used in the testing of consumer electronics and is expected to hold a significant share of the market. Functional testers generally is used to check if the device has the required power, functions well when in use and evaluates communication interfaces such as Bluetooth, Ethernet, and other such connectivity sources.
   

• In addition to this, these testers also ensure that the devices meet the regulatory requirements, certification and industry standards. It includes testing radio frequency emissions, safety while using it and other necessary clauses. With the growing dependence on smart and IoT supported devices, the demand for this testing solution is expected to grow further.
   
• With growing environmental concerns, such as effects of vibrations and waves on environment, the demand for device safety levels in regard to the environmental safety is also growing.
   

• In 2023, Asia Pacific dominated the automated test equipment market with accounting to around 41% of the global market share and generated around USD 3.5 billion revenue in the same year. Growing adoption of consumer electronics and technological improvements in production and production processes in countries such as India, China, South Korea are driving demand for the market.
   
• Growing penetration levels of technologies such as 5G, AI, and increasing manufacturing activities in industries such as automotive, consumer electronics, and semiconductors is driving demand for automated testing equipment in the region.
   
• In 2023, according to the OICA report, total production of passenger cars in China stood at 26.1 million. Japan, India, and South Korea followed next with production of 7.7 million passenger cars, 4.7 million and 3.9 million passenger cars respectively. This high production level also creates high demand for customized automated testing equipment to ensure quality product production and performance.
   
• In North America, the demand for these devices is backed by the strong technological, medical and aerospace industry, which rely heavily on automated testing equipment for their defect free product development. The U.S. holds a major share in manufacturing medical devices and is home to some of the biggest medical companies such as Johnson & Johnson, GE Healthcare and Medtronics.
   
• Besides, the country has strict measures regarding the safety and quality of the medical products manufactured, which makes it necessary for the companies to invest in quality testing measures, thus creating demand for this testing equipment.
   
• Europe also holds a significant share in the automated test equipment market due to its strict product quality measures. For instance, the automotive sector is one of the highly regulated sectors in the European countries and the manufacturers need to adhere to strict policies to ensure that their vehicles get the required certifications and approval.
   
• This creates demand for automated test equipment such as the PXI or PXIe testing equipment, which is generally used in the automotive industry. Furthermore, with the growing adoption of ADAS in the automotive industry, the demand for automated testing has increased further to ensure efficient functioning of its parts such as sensors, specialized algorithms, and actuators.
   

Automated Test Equipment Market Share

• The top 7 companies in the automated test equipment market include Advantest Corporation, Teradyne, Inc., National Instruments, Chroma ATE Inc., Keysight Technologies, Anritsu Corporation, and Marvin Test Solutions Inc., and they collectively hold a share of around 53% in the market in 2023.
   
• Teledyne is one of the major companies in the automated test equipment market due to its wide product range, catering to various industries such as consumer electronics, telecommunication, and semiconductor industry. Besides, the company is focused on expanding its market and product offerings thorough partnerships and acquisitions, positioning it as a major organization in this sector.
   
• Advantest Corporation is another major company in the industry, specializing in memory ATE. The demand for their products is majorly backed by the growing demand for memory chips, used in various semiconductors and telecommunication industry.
   
• Keysight technologies majorly caters to the automotive, aerospace, consumer electronics, telecommunication and defense companies and specialize in providing specialized solutions to their customers. With the roll out of 5G and smart devices and vehicles, the company is expanding its offering to suit their customer requirements. For instance, the company is one the major testing equipment providers to HPE due to its quality test process and equipment.
   

Automated Test Equipment Market Companies

Major players operating in the automated test equipment industry are:

• Advantest
• Anritsu
• ASM Pacific Technology
• Astronics
• Autotest Company
• Averna
• Chroma ATE
• Cohu
• Innotech
• Keysight Technologies
   

The companies operating in the automated test equipment market are actively investing in R&D activities to improve their products. To cater to a wider range of sectors, these companies understand the needs and accordingly developing their products to suit changing requirements. Such as with the rise of EV and semiconductor industry, the test equipment companies are now shifting their focus on manufacturing products that meet their specific requirements.
 

Advantest introduced new product in the market, named Known Good Die Test Cell in December 2024. These test cells aim to maximize the die level test yields for wide-bandgap devices. These devices are majorly being used to manufacture power semiconductors, which are in turn integrated into EVs and energy infrastructure.
 

In addition to research and product launches, the companies are adopting the partnership and acquisition processes to help increase their market share in different regions and also improve their product offerings by utilizing the strengths of their partner companies.
 

Automated Test Equipment Industry News

• In December 2024, Advantest Corporation introduced its testing solutions specially made for the advanced semiconductor chips and AI, considering the growing testing requirements of the semiconductor industry. The new testing solutions are designed to handle large testing processes simultaneously and improve efficiency.
   
• In August 2024, HAL introduced hardware abstraction layer, which is a aimed to enhance the efficiency of test system development, by simplifying the assembly process of the automated test equipment.
   
• In March 2024, an automated testing tool named Orbits was launched by Airties. This tool is specially designed for managed wi-fi networks. This platform aims to improve the testing process for broadband service providers and system-on-chip manufacturers.
   

The automated test equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By ATE

• Memory ATE
• Non-memory ATE
• Discrete ATE
• Others

Market, By Product

• Functional testers
• In-circuit testers
• Mixed-signal testers
• Radio frequency testers
• Optical testers
• Others

Market, By Application

• Semiconductor testing
• Wireless communication testing
• Automotive electronics testing
• Aerospace & defense testing
• Others

Market, By End-use Industry

• Aerospace & defense
• Consumer electronics
• IT & telecommunications
• Automotive
• Other

The above information is provided for the following regions:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia