News provided byTechnavio
Aug 20, 2024, 12:48 ET
NEW YORK, Aug. 20, 2024 /PRNewswire/ — The global automated test equipment (ATE) market size is estimated to grow by USD 1.84 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 4.36% during the forecast period. Augmented production of electronic goods is driving market growth, with a trend towards automotive wireless technologies. However, necessity for price-sensitive and multiple technology solutions poses a challenge. Key market players include Advantest Corp., ADVINT LLC, Aemulus Holdings Bhd, Aimil Ltd., Anritsu Corp., Astronics Corp., Averna Technologies Inc., BAE Systems Plc, Chroma ATE Inc., Cobham Ltd., Cohu Inc., INNOTECH Corp., Keysight Technologies Inc., National Instruments Corp., Rohde and Schwarz GmbH and Co. KG, ROOS INSTRUMENTS Inc., SPEA Spa, Teradyne Inc., TESEC Inc., and The Marvin Group.
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| Automated Test Equipment (ATE) Market Scope | |
| Report Coverage | Details |
| Base year | 2023 |
| Historic period | 2018 – 2022 |
| Forecast period | 2024-2028 |
| Growth momentum & CAGR | Accelerate at a CAGR of 4.36% |
| Market growth 2024-2028 | USD 1841.9 million |
| Market structure | Fragmented |
| YoY growth 2022-2023 (%) | 4.11 |
| Regional analysis | APAC, North America, Europe, South America, and Middle East and Africa |
| Performing market contribution | APAC at 36% |
| Key countries | US, China, Japan, Germany, and South Korea |
| Key companies profiled | Advantest Corp., ADVINT LLC, Aemulus Holdings Bhd, Aimil Ltd., Anritsu Corp., Astronics Corp., Averna Technologies Inc., BAE Systems Plc, Chroma ATE Inc., Cobham Ltd., Cohu Inc., INNOTECH Corp., Keysight Technologies Inc., National Instruments Corp., Rohde and Schwarz GmbH and Co. KG, ROOS INSTRUMENTS Inc., SPEA Spa, Teradyne Inc., TESEC Inc., and The Marvin Group |
Market Driver
The automotive industry is experiencing significant transformation as vehicles become more technologically advanced, featuring the latest electronic devices for enhanced performance and entertainment. European manufacturers are at the forefront of this innovation, integrating cellular technologies for emergency alerts and advanced GPS systems with internet connectivity. Developed markets like the US and Germany are recovering from the global recession, leading to increased sales of fuel-efficient, technologically advanced cars. These vehicles incorporate advanced systems such as MOST150 and Broad R-Reach Ethernet, driving the demand for Automated Test Equipment (ATE) in the automobile sector. The growing implementation of these technologies is expected to fuel the expansion of the global ATE market throughout the forecast period.
The Automated Test Equipment (ATE) market is thriving, particularly in the semiconductor industry. With the rise of connected devices and consumer electronics, the need for effective testing solutions is paramount. Semiconductor manufacturing companies focus on improving quality, increasing performance capability, and reducing the speed of operation for manufacturing semiconductor ICs. The penetration of smartphones and IoT devices has driven the demand for ATE in the non-memory segment. Miniaturization and design complexity require reliable testing, especially in the automotive sector with autonomous vehicles and wireless networks. Customer satisfaction, time-to-market, and product quality are key concerns for semiconductor manufacturers. ATE plays a crucial role in meeting consumer demands and economies of scale. Companies like Aemulus Corporation provide end-to-end testing solutions for physical characteristics, testing efficiency, and reliability. The semiconductor chip manufacturing process benefits from ATE in various verticals, including automotive, aerospace & defense, healthcare, IT & telecommunication, and entertainment. Effective testing ensures semiconductor devices meet performance requirements and maintain profit margins. Low testing costs are essential to stay competitive in this dynamic market.
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Market Challenges
- The Automated Test Equipment (ATE) market faces intense competition due to continuous technological advancements, encouraging manufacturers to invest heavily in research and development (R&D) for innovative products. However, rising raw material costs and increasing import duties from key suppliers, particularly in China, have significantly increased production costs. This has resulted in the availability of low-cost alternatives, which may compromise quality and negatively impact the brand image and profitability of international vendors. Compatibility with various technologies is a significant challenge for testing solution providers, especially for advanced smartphones with multiple radio circuits and simultaneous radio signals. Ensuring compatibility with Wi-Fi, Bluetooth, cellular Global Positioning System (GPS), and FM radio technologies, each with different bandwidths, is crucial. The growing demand for constant product development, high brand image, after-sales services, and continuous product support further adds to the overall cost of test equipment. These factors may restrict new investments in the global ATE market by price-sensitive end-users during the forecast period.
- The Automated Test Equipment (ATE) market faces significant challenges in various industries, particularly in wireless networks and semiconductor IC manufacturing. Semiconductor devices, such as chips in smartphones and IoT devices, require rigorous reliability testing for physical characteristics and functionality. Semiconductor manufacturers strive for economies of scale to meet consumer demands and reduce profit margins. ATE plays a crucial role in semiconductor chip manufacturing, testing efficiency, and product quality. Wireless networks and verticals like automotive, aerospace & defense, healthcare, IT & telecommunication, entertainment, and e-commerce demand advanced testing solutions for their unique requirements. Non-memory ATE segment is gaining traction due to the increasing production of semiconductor chips using advanced fabrication technologies. Customer satisfaction, time-to-market, and low testing costs are essential factors driving the ATE market growth. Companies like Aemulus Corporation are addressing these challenges by providing innovative testing solutions to meet the evolving needs of various industries.
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Segment Overview
This automated test equipment (ate) market report extensively covers market segmentation by
- End-user
- 1.1 Consumer electronics
- 1.2 Telecommunications
- 1.3 Aerospace and defense
- 1.4 Others
- Product
- 2.1 Non-memory ATE
- 2.2 Memory
- 2.3 Discrete
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and Africa
1.1 Consumer electronics- The Automated Test Equipment (ATE) market is a significant sector in the electronics industry. It provides solutions for testing and measuring the performance of various electronic devices and systems. Companies in this market offer equipment that automates repetitive tests, ensuring accuracy and consistency. The ATE market caters to various industries, including telecommunications, automotive, and consumer electronics, to name a few. Its use leads to increased productivity, reduced costs, and improved product quality. Companies invest in ATE to ensure their products meet industry standards and customer expectations.
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Research Analysis
The Automated Test Equipment (ATE) market plays a crucial role in the semiconductor industry by providing end-to-end testing solutions for manufacturing semiconductor ICs. With increasing design complexity and consumer demands for high-performance electronic components, ATE becomes essential for ensuring effective testing and reliability. Semiconductor manufacturing processes rely on ATE to improve quality, enhance performance capability, and increase testing efficiency. ATE systems are critical for semiconductor manufacturing companies, enabling them to meet speed of operation requirements and profit margin expectations. In the realm of wireless networks, ATE is indispensable for testing physical characteristics and performance, ensuring seamless connectivity and uninterrupted communication. Overall, ATE is a vital investment for semiconductor manufacturers, contributing significantly to the production of high-quality, reliable electronic components.
Market Research Overview
The Automated Test Equipment (ATE) market is witnessing significant growth in various industries, including semiconductor manufacturing, consumer electronics, and the automotive sector. With the increasing penetration of connected devices and the demand for quality improvement, semiconductor manufacturing companies are focusing on end-to-end testing solutions for manufacturing semiconductor ICs (Integrated Circuits) and semiconductor chips. The non-memory ATE segment is expected to grow due to the miniaturization of electronic components and design complexity. The semiconductor industry’s performance capability and speed of operation requirements are driving the need for effective testing solutions. Consumer demands for reliable semiconductor devices, such as smartphones, are also increasing the importance of ATE in semiconductor chip manufacturing. The automotive sector is another vertical where ATE is gaining traction due to the increasing use of semiconductor devices in autonomous vehicles and wireless networks. The aerospace & defense, healthcare, IT & telecommunication, entertainment, and e-commerce verticals are also adopting ATE for profit margin improvement and time-to-market reduction. ATE plays a crucial role in ensuring product quality and customer satisfaction by providing effective testing for physical characteristics, reliability, and testing efficiency. Semiconductor manufacturing processes, including fabrication technologies, are continuously evolving, making it essential for ATE to keep up with the latest trends to meet the demands of various industries.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
- Consumer Electronics
- Telecommunications
- Aerospace And Defense
- Others
- Product
- Non-memory ATE
- Memory
- Discrete
- Geography
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
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SOURCE Technavio