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Shift Towards Electric Vehicles and Autonomous Vehicles to Fuel the Growth of the Test Equipment Market
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Sensor and communication technologies are enabling the development of advanced systems for vehicle safety and control in the automotive sector. Automotive manufacturers are increasingly using electronics systems for improving vehicle performance, passenger safety, and comfort. The testing of these advanced vehicles systems is imperative to comply with regulations and enhance the safety of the driver. The global integrated automotive test solutions market, which comprises mechatronics test systems such as dynamometers, vehicle emission testers, and wheel alignment testers; and electronics test systems such as Electronic Control Unit (ECU) and telematics and connectivity test systems, is expected to grow at a CAGR of 6.8% from 2017 to 2024.The mechatronics test systems market is primary driven by the demand for dynamometers and vehicle emission testers. Stringent emission regulations, especially in North America and Europe, will strengthen the adoption of vehicle emission testers. The share of electronics in a car is expected to increase from 40% (2017) to more than 55% by 2024. This includes the increasing number of ECUs and electronic components associated with infotainment, telematics, and in-vehicle connectivity. The complexity in modern-day automotive systems necessitates the comprehensive testing of both electronics and software. New entrants from adjacent markets such as information technology, safety systems, and cellular network providers are entering into the automotive telematics systems market, thereby opening up new growth opportunities for test system vendors. Automotive OEMs have realised that Advanced Driver Assistance Systems (ADAS) would be a differentiating factor for their brands, thereby becoming an important source of revenue for them and thus, for test vendors too. In the future, ADAS technologies are likely to be integrated to build fully autonomous vehicles, further increasing the need for test equipment in the telematics market. Well-established test and measurement providers such as such as National Instruments, Rohde & Schwarz, and Keysight Technologies, have identified new growth opportunities in the electronics testing space and are offering advanced electronic functional test systems for testing in-vehicle networks, electromagnetic compatibility, and infotainments.
This research strives to provide a detailed analysis of the global integrated automotive test solutions market and its mechatronics test systems and electronics test systems segments. It also provides a detailed analysis about key sectors that investors will need to concentrate on to leverage its enormous potential in the future. Mechatronics test systems like chassis and engine dynamometers, vehicle emission testers, and wheel alignment testers will experience stable growth while electronics test systems such as ECU functional test systems will experience solid growth in the future.
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