Automated Test Equipment Market to be Valued at USD 4 Billion by 2020

  • May 26, 2016
  • News

Testing is the immediate step following the Manufacturing of any consumer electronic device. This step is one of the most essential processes as it guarantees the performance capability of the product to the consumer or buyer. Automated Test Equipment (ATE) is employed to check for defects in the Devices under Test (DUT) and to ensure its quality. Automated Test Equipment is preferred because it is extremely accurate, fast and produces measureable results that help manufacturers meet stringent regulatory norms. The adoption of Automated Test Equipment plays a very significant role in lowering the costs incurred for manufacturing and in the elimination of defective devices. APAC occupies the dominant market share in the Global ATE Market and is followed by North America.

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Market Drivers: The Automated Test Equipment Market is driven by an Increasing demand for Consumer Electronics. The Asian Market poses the highest potential for growth as India and China are becoming Global Economies with their focus on the Electronics and Manufacturing sectors. An increase in the design complexity due to adoption of System-on-a-chip (SoC) Technology has given rise to the need for effective testing operations, which is expected to drive the growth of ATE market. The unstable demand for semiconductors is expected to hinder the growth of ATE market during the forecast period.

IT & Telecommunication Sector accounted for over 45% of the overall market share in 2014, which can be accredited to the increased use of PCs, Laptops, Smartphones and Tablets in the market and increase in communication devices.

Market Segmentation: The Automated Test Equipment Market is divided into 4 different segments. The segmentations are;

  • by Type,
  • by Technology,
  • by Application and
  • by Geography


There are Six Types of ATE’s;

  • Memory Chip Based Testing,
  • Non-Memory Chip Based Testing,
  • Mixed Signal Based Testing,
  • Discrete Testing,
  • Digital Testing and Others.


The ATE Market is also classified by Technology; WCDMA and RF Technology Based Testing, LTE Technology Based Testing, Optical Inspection Technology Testing, Machine Vision Technology Testing, X-Ray Inspection Technology and Others. Automated Test Equipment also has Applications in various Industries including; Automotive Electronics, Aerospace and Defence, Consumer Electronics, IT & Telecommunications and others.

The ATE Market is also geographically segmented into 5 main regions; North America, South America, Europe, Asia-Pacific and Rest of the World. A more detailed explanation is provided in the Market report on The Automated Test Equipment Market by IndustryARC.

Market Growth: Increased adoption of Wireless Networks and Advancements in the Manufacturing Processes are the key factors contributing to the growth of the Automated Testing Equipment Market during the period under study. IndustryARC predicts that the Global ATE Market is estimated to reach $4 billion by 2020. Automotive Applications are estimated to observe highest growth which can be attributed to increased adoption of various electronics in automobiles.

Key Players: Few Key Players in the Global ATE Market in 2014 are:

  • Anritsu Co.,
  • SPEA S.p.A,
  • Advantest Corporation and
  • Agilent Technologies Inc. among others.


A more detailed list of key players with their company profiles is included in the Market Report by IndustryARC.

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