Automated Test Equipment Market – The Biggest Trends to watch out for 2012-2022

Xpodence Research updated data for competitive structure of the Global Automated Test Equipment Market Industry to devise effective growth strategies and facilitate better decision-making.

The global automated test equipment (ATE) is expected to reach USD 4.3 Billion by 2022. The equipment is utilized for testing the semiconductor chips. Increasing demand in computing, consumer and communication industry is expected to drive the market. Furthermore, growing demand and need for efficiency in various end-user segments which include healthcare, consumer electronics, communication, automotive, and defense is anticipated to upsurge the industry growth over the forecast period.

Continuous developments in software, computing and instrumentation technology are anticipated to fuel the innovation and growth in the industry. Increasing demand for consumer electronics and growing adoption of System-on-chip is projected to enhance the market growth over the forecast period. Growing device integration with rising consumer demand for additional features has led to an increase in the number of RF ports.

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Additionally, growing expansion of wireless networks and developments in semiconductor manufacturing processes in the emerging countries are anticipated to witness enormous growth in the industry. Increasing miniaturization of devices with numerous features such as high resolution, superior quality cameras, touch screen display across various application areas which include telecommunication, IT and defense has positively influenced the ATE market.

The ATE market is categorized based on the product and application. Based on the products, the market is segregated into memory, non-memory and discrete ATE. The non-memory ATE is estimated to contribute significantly with the market share of over 60% in 2016. Enduring innovations in autonomous vehicles and IoT devices in aerospace and defense sector have significantly changed the dynamics of the industry.

The application segment of the ATE market include automotive, defense, consumer electronics, IT & telecommunication and others. The IT & telecommunication application is projected to acquire the major share of the market. It enables the service providers to augment the network with new telecom equipment manufacturers ensuring the consistent quality of the products.

The growth of the automotive sector can be accredited to the extensive application of semiconductor devices across the automotive electronics such as vehicle infotainment systems, Advanced Driving Assistance System (ADAS). Furthermore, increasing unit production, performance and complexity level of the devices in various electronic products has led to the emergence of growth in semiconductor device technology.

Few other factors driving the market include increased applications of consumer goods, reduced manufacturing time, and increased throughput. Furthermore, commercialization of the IoT and advancements in the automotive sector will also provide enormous opportunities to the market. The fluctuations in semiconductor demand have created a supply demand gap which has caused the revenue generation unpredictable and has impacted the market profitability.

Asia Pacific region is likely to dominate the market in 2016 and is expected to acquire the key share over the forecast period owing to the presence of semiconductor industries. Rapid technological advancements with gradually changing customer needs have led to the positive impact to the market. Presence of major electronic manufacturing and semiconductor companies in the countries such as Japan, China, Taiwan has significantly contributed to the industry growth.

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The North America region is expected to witness steady growth owing to the increased adoption of automated test equipment in defense and telecommunication sector. Increasing demand of ATE from automotive manufacturers in Europe region will lead to significant growth.

Key players in the industry include LTX – Credence Corporation, Advantest Co., Advint LLC, Aeroflex Inc., National Instruments Corporation and Teradyne Inc. Maintaining the close relationship with the customers, development of new instrumentation, enhancing the test platforms are few key strategies adopted in the industry.

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