PUBLISHER: KBV Research | PRODUCT CODE: 1709870
PUBLISHER: KBV Research | PRODUCT CODE: 1709870
The Global Automotive Test Equipment Market size is expected to reach $3.66 billion by 2031, rising at a market growth of 5.0% CAGR during the forecast period.
The Asia Pacific segment procured 40% revenue share in the market in 2023. The region's growing middle-class population, rising vehicle ownership, and increasing demand for fuel production for electric and hybrid vehicles (EVs/HEVs) drive the need for advanced automotive test equipment. Government initiatives promoting stricter emission standards (such as China VI and BS-VI in India) and policies encouraging green mobility are compelling manufacturers to invest in comprehensive vehicle testing and validation systems.
Over the past decade, the global automotive industry has experienced consistent growth in vehicle production and sales. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle sales reached 92 (92,724,668) million units in 2023, a substantial increase from previous years. OICA also stated that the total production of vehicles in 2023 reached 93,546,599 units, marking a 10% increase from the previous years. Moreover, with the complexity of modern vehicles, particularly those integrating electric drivetrains and autonomous technologies, the demand for precise and efficient testing solutions has become even more critical. Hence, these factors are propelling the growth of the market.
Additionally, The automotive industry is undergoing a significant transformation, driven by the rapid adoption of advanced technologies such as electric vehicles (EVs), autonomous vehicles (AVs), and connected cars. These innovations are reshaping traditional vehicle architectures, introducing a higher level of complexity in vehicle systems and components. For example, electric vehicles incorporate high-voltage battery systems, advanced power electronics, and electric drivetrains, requiring precise calibration and performance validation. As a result, the automotive test equipment market is significantly growing due to the advancements in automotive technologies.
However, Automotive test equipment, including chassis, engine dynamometers, emission analyzers, and advanced diagnostic systems, demands substantial capital investment for procurement, installation, and infrastructure development. These costs escalate further when manufacturers integrate state-of-the-art technologies such as automation, artificial intelligence, and cloud-based diagnostics to enhance testing accuracy and efficiency. Hence, the high upfront capital requirements deter new players from entering the automotive test equipment industry, limiting market expansion and innovation.
Vehicle Outlook
On the basis of vehicle, the market is divided into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The light commercial vehicle segment recorded 26% revenue share in the market in 2023. Light commercial vehicles (LCVs) are often used in urban areas for last-mile deliveries, making fuel efficiency, emissions compliance, and vehicle reliability critical factors that require rigorous testing. Additionally, the growing trend of electrification in commercial fleets, with many companies transitioning to electric LCVs for sustainability goals, has amplified the need for advanced test equipment to evaluate electric powertrains, battery life, and energy efficiency.
Application Tools Outlook
By application tools, the market is segmented into handheld scan tool, mobile device-based scan tool, and PC/laptop-based scan tool. The PC/laptop-based scan tool segment garnered 32% revenue share in the market in 2023. These tools offer high processing power, comprehensive system diagnostics, and the ability to perform complex functions such as ECU programming, software updates, and re-coding. With the growing complexity of modern vehicles, especially those equipped with advanced driver assistance systems (ADAS), electric powertrains, and sophisticated onboard electronics, PC/laptop-based tools provide deep analysis and detailed reporting that technicians require.
Product Outlook
Based on product, the market is classified into chassis dynamometer, engine dynamometer, wheel alignment tester, and vehicle emission test system. The wheel alignment tester segment procured 13% revenue share in the market in 2023. Regular wheel alignment checks ensure optimal vehicle control, reduce tire wear, and enhance fuel efficiency. The increase in global vehicle production and the growing number of service and maintenance centers, particularly in developing countries, are boosting the adoption of advanced wheel alignment testers.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment acquired 28% revenue share in the market in 2023. The North America segment is primarily driven by strict regulatory frameworks imposed by agencies like the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), which mandate rigorous testing for emissions, vehicle safety, and performance.
List of Key Companies Profiled
Global Automotive Test Equipment Market Report Segmentation
By Vehicle
By Application Tools
By Product
By Geography