Automated Test Equipment Market Size By Type (Memory Integrated Circuit (IC) Test System, Linear & Discrete Test System, System-on-Chip [SoC] Test System), By Application (Consumer Electronics, Automotive, Aerospace & Defense, Information & Communication Technology (ICT)), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Automated Test Equipment (ATE) Market size exceeded USD 6 billion in 2020 and is anticipated to grow at a CAGR of over 9% from 2021 to 2027. The market growth is attributed to the rising integration of power semiconductor devices in the automotive sector. Various power semiconductors, such as MOSFET, IGBT, transistors, diodes, and rectifiers, are extensively incorporated in powertrain systems, Battery Management Systems (BMS), and Electronic Control Units (ECUs) of a vehicle. The increasing electrification of vehicles coupled with the rising developments in ADAS and self-driving technologies has led automotive OEMs to deploy automated test equipment in production facilities. This will help automotive OEMs to achieve end-to-end testing of automotive-grade chipsets, power semiconductors, and Application-specific Integrated Circuits (ASICs) to increase efficiency and productivity.

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The COVID-19 pandemic has declined the demand for automated test equipment from various industries including consumer electronics, industrial, and automotive sectors due to the shutdown of production plants in early 2020. In the first half of 2020, lockdowns imposed by various regulatory bodies and governments coupled with international trade barriers impacted the semiconductor industry supply-chain worldwide. This hampered the market potential for automated test equipment manufacturers during the pandemic. However, the growing work-from-home scenario owing to the pandemic has resulted in the increasing demand for tablets, laptops, and desktop/PCs. This has increased the market demand for automated test equipment from OSATs and consumer electronics OEMs, sustaining the industry growth during the pandemic.
 

Technological advancements in System-on-Chip (SoC) test systems will fuel the market expansion

The system-on-chip (SoC) test system segment dominated more than 55% of the ATE market share in 2020 led by the several high-end features including precision measurements, parallel testing capabilities, and low-error margins offered by the SoC test systems as compared to semi-automated test systems. The SoC test systems are designed on a ‘block-by-block’ architecture and are densely integrated with several components on a single chip. The higher complexity and tighter integration of SoCs can lead to significant error margins and increase in debugging and testing length. The market players are emphasizing on developing technically advanced SoC test systems with parallel processing capabilities to achieve faster time-to-market.

Rising innovations in complex electronic hardware designs will propel the market value in the consumer electronics sector

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The consumer electronics segment in the ATE market held 35% of the revenue share in 2020 driven by the increasing adoption of semiconductor memory ICs and SoC chipsets in consumer electronics devices such as wearable electronics, smart speakers, smartphones, and tablets. The SoC chipsets and memory ICs have to undergo an end-to-end stress-test before integrating into final devices. The automated test equipment helps to reduce the overall testing life cycle and increase the production capacity in consumer electronics manufacturing facilities. The growing demand for back-end testing in consumer electronics production plants will augment the industry expansion. Several consumer electronics manufacturers are emphasizing on expanding the production plants to cater to a high demand in the market.
 

Growing initiatives and investments from governments to boost semiconductor manufacturing in the APAC region

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Asia Pacific automated test equipment market accounted for over 80% of the revenue share in 2020 and is projected to witness 9.5% growth rate through 2027 impelled by the rising government initiatives backed by funding activities to promote semiconductor manufacturing activities in the region. For instance, in May 2021, the South Korea government announced to invest USD 451 billion to stimulate the regional semiconductor manufacturing industry. Through this funding, the government will offer incentives and tax benefits to foreign chip manufacturers and regional players if they establish new fabrication plants in the country. The increasing establishments of new fabrication plants will create a high demand for back-end semiconductor manufacturing equipment including assembly, packaging, and automated test equipment. Such large-scale government funding will accelerate the market progression over the forecast timeline.
 

Focus on strategic alliances and acquisitions to stay competitive in the market

Key companies operating in the market are Advantest Corporation, ASM Pacific Technology, Astronics Corporation, National Instruments Corporation, Cohu, Inc., Teradyne Inc., and Tokyo Electron Limited. The market leaders are highly engaged in inorganic growth strategies such as mergers & acquisitions to stay competitive among other players.
 

The automated test equipment (ATE) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Product Type

• Memory IC test system
• Linear & discrete test system
• System-on-Chip (SoC) test system
• Others

Market, By Application

• Consumer electronics
• Automotive
• Aerospace & defense
• ICT
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Taiwan
• LAMEA
  • Mexico
  • Argentina
  • Israel