Automated Test Equipment Market Size, ATE Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Automated Test Equipment Market


The global automated test equipment market size was valued at USD 6.61 billion in 2019 and is expected to witness a significant growth over the forecast period. The growth is driven by the use of Automated Test Equipment (ATE) in the automotive and semiconductor industry. Significant increase in the number of connected devices and consumer electronics along with increasing focus of the companies on quality improvement along with end-to-end testing solutions is expected to further drive the market. Implementation of ATE in semiconductor manufacturing companies to enhance the performance capability, speed of operation and in turn, reduce the cost of semiconductor devices is expected to positively influence the growth.
 

Increasing adoption of System on Chip (SoC) and high demand for consumer electronics is expected to be the key driving force for the ATE market over the forecast period. Growing electronic components in the automotive sector and penetration of smartphones are expected to drive the market. Miniaturization has widened the scope of ATE application. Additionally, considerable technological advancements coupled with design complexity and the need for effective testing is expected to fuel the market.
Advancements in semiconductor manufacturing processes along with expansion of wireless networks in developing nations are expected to significantly drive the automatic test equipment market growth in the forthcoming years. Additionally, considerable technological advancements coupled with design complexity and need for effective testing, are the factors expected to benefit the market expansion.
The recent technological advancements have significantly reduced the cost and time for manufacturing semiconductor IC and have increased profit margin for the companies. The ATE manufacturing companies constantly invest in R&D activities to enhance their product portfolio and to fit in with the latest improvement in semiconductor devices.
                                                                
Product Insights of Automated Test Equipment Market

Based on product, the automated test equipment market is segmented into non-memory, memory, and discrete. Recent innovations in IoT devices and autonomous vehicles along with significant advancements in defense and aerospace sectors have drastically changed the market dynamics. Companies are focusing on enhancing customer satisfaction by ensuring faster time-to-market along with superior product quality and low-testing costs. These factors act as significant growth drivers for the market.
The product segment is further segregated into non-memory, memory, and discrete automated test equipment. The non-memory ATE segment dominated the market in 2019. Increased complexities in semiconductor chip manufacturing needs significant amount of test cost and time. Semiconductor companies focus on reducing the testing costs and consider outsourced equipment for testing process instead of in-house development which is one of the primary factors driving the growth.
Vertical Insights
Based on vertical, the market is categorized into automotive, consumer, aerospace and defense, IT and telecommunications, and others. The others segment includes Banking, Financial Services and Insurance (BFSI), entertainment, e-commerce, and medical. Increasing application of automatic test equipment in semiconductor assembly and manufacturing industry is expected to drive the demand for ATE. The IT and telecommunication vertical is expected to have significant market over the forecast period.
 

The demand for automated test equipment is driven mainly by the increasing ST production, complexity, and performance level of semiconductor devices used in electronic products along with the emergence of development in semiconductor device technology. Furthermore, the increasing pricing pressure among semiconductor manufacturers has forced suppliers to leverage the utilization of capital equipment across multiple devices. Increasing application in semiconductor assemble and manufacturing industry is expected to drive the product demand. The consumer vertical is held around 26% market share in 2019.

Regional Insights of Automated Test Equipment Market

Asia Pacific is expected to emerge as the largest regional segment over the forecast period, attributed to the significant presence of semiconductor industries. China and Taiwan are expected to hold the maximum regional revenue share. Adaptive testing, advanced Design-For-Test (DFT), faster mixed-signal testers, fine-pitch probe cards, and design standards among others are the future technologies expected to significantly change the market dynamics. Increase in government initiatives by the countries like China, Indonesia, Malaysia, Singapore, Thailand, and Taiwan to develop the advanced manufacturing processes is also expected to boost the growth. North America is anticipated to witness significant gains, in terms of revenue share, over the forecast period due to increasing application of automated test equipment in the aerospace and defense sector.

Market Share Insights of Automated Test Equipment Market

Key market players include Aemulus Holdings Bhd (“Aemulus”); Chroma ATE Inc.; Aeroflex Inc. (a subsidiary of Cobham plc); Astronics Corporation; Advantest Corporation; LTX-Credence Corporation (Xcerra Corporation); Teradyne Inc.; STAr Technologies Inc. (a subsidiary of Innotech Corporation); Tesec Corporation; Roos Instruments, Inc.; Marvin Test Solutions Inc.; and Danaher Corporation.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Automated Test Equipment Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global automated test equipment market report based on product, vertical, and region:


Product Outlook (Revenue, USD Million, 2019 - 2030)


Non-memory ATE


Memory ATE


Discrete ATE


Vertical Outlook (Revenue, USD Million, 2019 - 2030)


Automotive


Consumer


Aerospace & Defense


IT & Telecommunications


Others