The automated test equipment market is expected to grow from $7.0 billion in 2022 to $8.8 billion by 2027; it is expected to grow at a CAGR of 4.7% during the forecast period, reports ResearchAndMarkets.
The major driving factors for the growth of the automated test equipment market include the growing advancement in the automotive vertical.
Mass Interconnects to have a significant market size of automated test equipment market during the forecast period
The mass interconnect systems used in ATEs play the role of a connecting interface between the test instruments and the DUT. The test instruments include PCI extension for instruments (PXI), VME extension for instruments (VXI), LAN extension for instruments (LXI), general-purpose interface bus (GPIB), signal conditioning extensions for instruments (SCXI), and peripheral component interconnect (PCI).
In mass interconnect systems, the receiver on the tester side is mated with an interchangeable test adapter (ITA) on the DUT. Mass interconnect systems find scope in aerospace and defense, industrial, as well as automotive applications. They are available in multiple sizes and configurations. They can, hence, be used virtually for any test requirement. The need for a connection between the ATE system and the DUT is ever-increasing, which proves to be a driving factor.
Integrated Circuit (IC) Testing type to have the largest market size during the forecast period
The increasing adoption of ICs by mobile device manufacturers, network equipment manufacturers, and telecommunication service providers is expected to drive the growth prospects of testing equipment. Increased investments in R&D, technological advancements in networking and communication, increased manufacturing activities in developing countries, and a rise in demand for electronic products has led to an increase in the need for IC testing equipment.
Europe to grow with significant CAGR during the forecast period.
The European ATE market is further segmented into the UK, Germany, France, Italy, and the Rest of Europe. The European semiconductor industry is showing a favorable trend for the growth of fabrication plants and triggering progression for wafer cleaning equipment. Countries such as Germany, the UK, and Italy are showing significant growth potential owing to the presence of giant semiconductor manufacturers such as STMicroelectronics (Switzerland), Infineon Technologies AG (Germany), and X-FAB Silicon Foundries (Germany).
Intel Inc. (US) has upgraded and expanded its fabrication capacity in Ireland and Israel, becoming the top consumer of ATE in these countries. The thriving automotive industry in the region acts as an opportunity for the ATE market. The growth of 4G LTE technology in the region and ongoing developments and smaller deployments of the 5G infrastructure is expected to drive the market for ATE in consumer electronics and other verticals.
