ID: MRFR/AM/1636-HCR | February 2021 | Region: Global | 111 pages
Automotive test equipment is an instrument that is capable of performing tests on automobiles. The demand for such instruments has increased considerably in recent times due to the increasing sales of automobiles and the high emphasis on the safety aspects of drivers and passengers. The high rate of car vehicle-related accidents has significantly influenced the demand in the global market. According to the World Health Organization (WHO), approximately 1.3 million people lose their lives each year due to road accidents. The high death figure has made people conscious of automobile safety.
The global automotive test equipment market size is expected to reach around USD 4 billion by 2025. Various factors could come into play and influence market performance. The integration of new technologies creates opportunities for market players to introduce improved and better automotive test equipment technology in the market.
A thorough evaluation of the global market has been carried out. Some of the chief variables that have been explored include the market drivers, opportunities, restraints, and challenges. Based on the in-depth analysis, the growth potential of the market at the global level has been forecasted.
Covid 19 analysis
The Covid 19 pandemic has adversely affected the global market growth of automotive test equipment. Due to the pandemic, the demand and the sales turnover in the market have plummeted. However, the market is expected to recover during the forecasted period due to the eased government restrictions relating to mobility.
Competitive intensity in the industry
The competitive intensity in the global automotive test equipment market is high due to the rising demand for electric vehicles and new technologies in automobiles. In order to capitalize on the market opportunities, several business players have entered the market setting, intensifying the competition at the global level. Some of the major business entities that have been driving the global market growth of automotive test equipment have been listed below:
One of the chief market trends that have been identified revolves around the high integration of digital technology. Various businesses have been working on new strategies to gain a competitive advantage in the promising market and maximize captured market share of automotive test equipment
Chief variables existing in the market
The chief market drivers that impact the global Automotive test equipment market include the rise in demand for electric vehicles and the rising emphasis on automobile safety. These are the major market trends of automotive test equipment that can influence the market performance during the forecasted period.
The major challenges in the global market include high competition and the high unpredictability associated with road accidents. These elements could act as major bottlenecks for the key market players and limit their ability to expand their portion of the market share of automotive test equipment.
Several opportunities exist in the global market, such as the rising demand for onboard diagnostic tools and innovative testing solutions. The businesses operating in the market could integrate new technologies to improve the reliability and validity of their automotive test equipment. It could improve customer safety and boost their market performance.
The major restraints that arise before the businesses that operate in the global automotive test equipment market include the absence of streamlined protocols to produce automotive test equipment and the high cost of producing and developing these instruments. During the forecasted period, businesses need to devise suitable strategies so that they could effectively operate in the market by overcoming these restraints.
Cumulative evaluation of the market
There exist a host of variables in the global automotive test equipment market setting. Some of the chief drives that increase the market’s attractiveness include integrating new technologies to produce improved automotive test equipment technologies and the high demand for electric vehicles. However, several hurdles in the market also exist in the form of the high level of competitive intensity and high cost of automotive test equipment. These market variables could play an instrumental role during the forecasted period and influence its growth and performance at the global level.
Overview of the main market segments
The global automotive test equipment industry can be divided into wheel alignment tester, engine dynamometer, chassis dynamometer, and vehicle emission test system. The vehicle emission test system is expected to dominate the market during the forecasted period. The high emphasis on the safety aspect is expected to serve as a catalyst and lead to the expansion of the global automotive test equipment market size.
The global automotive test equipment market can be segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV) based on the vehicle type. The passenger car segment is expected to capture a major portion of the global market share of automotive test equipment during the forecasted period. The rise in the demand for vehicles owing to higher disposable income is expected to boost the performance of the specific market segment.
The global automotive test equipment industry can be segmented into mobile device-based scan tools, handheld scan tools, pc/laptop-based scan tools, and others. The performance of these segments is directly linked to the integration of new kinds of digital technologies by the manufacturers that operate in the global market. The demand for mobile device-based scan tools is expected to experience high growth and contribute to the global automotive test equipment market size. Some of the key factors that could increase the demand for the particular testing tool segment are the high convenience and simplicity associated with the tools.
The global automotive test equipment market can be segmented into distinct geographical regions such as North America, Europe, Asia Pacific, and the rest of the world. The Asia Pacific segmented segment is expected to influence the global market size of automotive test equipment by delivering splendid market performance during the forecasted period. Some of the main factors that are likely to accelerate the growth of the specific market segment include the rising demand for automobiles in nations like China and India and the effective integration of innovative and advanced features in vehicles. In each geographical segment, distinctive factors come into play that influences performance and growth. However, each geographical segment is likely to play an important role in influencing the growth potential of the global market during the forecasted period.
Recent market developments
The global market report on the automotive test equipment industry has helped to ascertain its potential to grow during the forecasted period. A holistic investigation of the market has be3n carried out by taking into consideration several market variables. The application of strategic models such as the SWOT analysis framework and Porter’s Five Force model has helped identify various market trends of automotive test equipment reshaping the market in the 21st century. The analysis has been carried out at the micro and macro levels. At the micro-level, one of the chief elements that have been evaluated is the strategy that the key market players adopt. At the macro level, the market opportunities and challenges have been identified and investigated thoroughly as these elements can influence the market growth of automotive test equipment during the forecasted period.
Key Industrial segments
By Product Type
By Vehicle Type
|CAGR||4% CAGR (2022 to 2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Vehicle Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Robert Bosch GmbH (Germany), Honeywell International Inc. (US), ABB Ltd (Switzerland), Delphi Automotive PLC (UK), Actia S.A. (France), Advantest Corp (Japan), Horiba Ltd. (Japan), Softing AG (Germany), Teradyne Inc. (US), and Siemens (Germany).|
|Key Market Opportunities||increase in demand for automotive from developing nations|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global automotive test equipment market is poised to record a market value of USD 3 Billion by 2027.
The global automotive test equipment market is maturing at a moderate 4% CAGR over the review period of 2020 to 2027.
A few significant players of the global automotive test equipment market are Horiba Ltd. (Japan), Softing AG (Germany), Teradyne Inc. (US), and Siemens (Germany), among others.
The vehicle emission test system segment is expected to drive market growth over the review period.
The heavy commercial vehicle (HCV) segment is likely to witness the highest demand in the automotive test equipment market.