Automated Test Equipment (ATE) Market revenue to cross USD 11.5 Bn by 2027: Global Market Insights Inc.

Selbyville, Delaware, Aug. 18, 2021 (GLOBE NEWSWIRE) —

According to latest report “Automated Test Equipment Market by Type (Memory Integrated Circuit (IC) Test System, Linear & Discrete Test System, System-on-Chip [SoC] Test System), Application (Consumer Electronics, Automotive, Aerospace & Defense, Information & Communication Technology (ICT)), Regional Outlook, Price Trends, Competitive Market Share & Forecast 2027”, by Global Market Insights Inc., the market valuation of automated test equipment will cross $11.5 billion by 2027.

The market growth is attributed to the rising penetration of IoT and AI technologies, which include the integration of highly complex electronic components & devices. Automated test equipment reduces time to market and delivers high-quality standards for various advanced functionalities. This will accelerate demand among chip & IC manufacturers to perform accurate tests and measurements, thereby reducing the chances of error and failure. Companies are also using automated test equipment to assure the quality and performance of these chipsets as it offers a fast computation process, tiny form factors, and energy efficiency for connected devices. Rising government initiatives to spur the adoption of AI and IoT technology have positively influenced semiconductor manufacturers and OEMs to boost their investments in advanced packaging technology.

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The linear & discrete test system held for 15% of the automated test equipment market share in 2020. Linear & discrete test systems offer advanced test features such as conditional loop testing, identification of unknown devices, and display information related to portable pins. These features add an advantage in linear testing to identify intermittent & temperature-related errors in memory, CMOS & other interface devices. The rising inclination toward 5G technology is propelling telecom equipment manufacturers to deploy automotive test equipment to ensure the reliability and performance efficiency of ICs under linear conditions. Furthermore, companies manufacturing IC test systems are strategizing new collaborations & partnerships with other players to stimulate their product development and cater to the high competitive edge.

The automated test equipment market from ICT segment accounted for around 25% of revenue share in 2020 led by the rising integration of connected technologies, such as 5G & AI, and computing devices. Increasing usage of computing devices in the manufacturing industry for improved process flexibility & efficiency, synchronized production processes, and reduction of maintenance & operating costs will impel the market expansion. Market leaders are also inclined toward the development of new testing devices for RF testing in devices with wireless communication.

Europe automated test equipment market is poised to expand at 5% growth rate by 2027 due to an increased demand for semiconductor and innovative chip technology among regional automotive OEMs. Rising demand for high-degree quality and reliability in automotive electronic devices, such as ADAS, LiDAR, AI sensors, and others, is augmenting the semiconductor manufacturers to invest in automated test equipment. Major participants, such as Bosch, Nexperia, Intel & others, in Europe are focusing on expanding their manufacturing and fabrication foundries of semiconductor & integrated chips, catering to the market demand. For instance, in June 2021, Robert Bosch inaugurated a USD 1.2 billion chip fabrication facility in Germany, which will supply products to automotive customers. Rising investment and funding activities to promote the expansion of wafer fab facilities will create a growth opportunity for the market.

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Major players operating in the automated test equipment market are LTX-Credence, Advantest, Teradyne, Cal-Bay Systems, SPEA, Aeroflex, Advint, Rohde & Schwarz GmbH, and others. Manufacturers are continuously inclined toward new strategic acquisitions & collaborations to expand their footprint and gain a highly competitive edge in the market.

Some major findings of the automated test equipment (ATE) market report include:

  • A growing trend toward ADAS and self-driving technologies in vehicles will fuel the industry growth potential. Increasing electrification in vehicles has boosted the demand for various power semiconductors and ICs, thereby propelling the deployment of automated test equipment among automotive OEMs.
  • Increasing acceptance of miniaturized ICs and SoCs in various consumer electronics applications, such as smartphones, wearables devices, etc., will enhance the demand for ATE in the coming years. OEMs are reducing node size to achieve advanced packaging in semiconductor chipsets, which will foster the adoption of automated test equipment over the forecast period.
  • Rising usage of SoCs in electronic devices for high-speed data transfer will influence the ATE market value of SoC test systems. Continuous development in SoC test systems with parallel processing capabilities will further increase the acceptance of 5G and AI technologies.
  • Rising government initiatives and funding activities in the APAC region to boost semiconductor manufacturing will add an advantage for the industry expansion. Additionally, increasing government initiatives to promote chip manufacturing for the defense sector are driving the growth of automated test equipment in North America.
  • The COVID-19 pandemic severely impacted the semiconductor manufacturing sector across the globe. In mid-2020, several governments across the globe had imposed lockdowns and international trade restrictions, resulting in supply chain disruptions.

Table of Contents (ToC) of the report:

Chapter 3   Automated test equipment Market Insights

3.1    Industry segmentation

3.2    Impact analysis of corona virus (COVID-19) pandemic

3.2.1    Global outlook

3.2.2    Impact by region

3.2.3    Industry value chain    Research and development    Manufacturing    Marketing    Supply

3.2.4    Competitive landscape    Strategy    Distribution network    Business growth

3.3    Industry ecosystem analysis

3.3.1    Component supplier

3.3.2    Manufacturers

3.3.3    Distribution channel analysis

3.3.4    End users

3.3.5    Vendor matrix

3.4    Technology & innovation landscape

3.4.1    Xtreme Link technology (Advantest Corporation)

3.4.2    Near DUT Test Technology (Teradyne Inc

3.5    Regulatory landscape

3.6    Industry impact forces

3.6.1    Growth drivers

3.6.2    Industry pitfalls and challenges

3.7    Growth potential analysis

3.8    Porter’s analysis

3.9    PESTEL analysis

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About Global Market Insights Inc.

Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.


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