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Automotive Test Equipment Market

Automotive Test Equipment Market

The market for Automotive Test Equipment was estimated at $4.81 billion in 2024; it is anticipated to increase to $6.5 billion by 2030, with projections indicating growth to around $8.4 billion by 2035.

Report ID:DS2001083
Author:Swarup Sahu - Senior Consultant
Published Date:February 2025
Datatree
Automotive & Transportation
Automotive & Mobility
Automotive Test Equipment
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Report Summary
Table of Contents
Methodology
Market Data

Global Automotive Test Equipment Market Outlook

Revenue, 2024

$4.8B

Forecast, 2034

$8.0B

CAGR, 2024 - 2034

5.2%
The Automotive Test Equipment industry revenue is expected to be around $5.1 billion in 2025 and expected to showcase growth with 5.2% CAGR between 2025 and 2034. The rising importance of the Automotive Test Equipment market reflects its trend in the industry landscape today due to various factors such as advancements in technology and higher car production numbers alongside stricter safety regulations set forth by governments worldwide. The field is experiencing growth driven primarily by the increased focus on thorough automotive testing to guarantee adherence, to safety and performance standards amidst the ever evolving vehicle designs influenced by technological progress.

Automotive testing equipment refers to tools used for conducting assessments of the performance of different parts and systems in a vehicle. Explore the functionalities such, as emission checks, researching engines using dynamometers, varied temperature tests, sound and vibration assessments (NVH) and crucial vehicle diagnostics. These testing tools are widely used in the sector for a range of purposes that cover cars, vans and trucks of different sizes.

Automotive Test Equipment market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Automotive Test Equipment market is projected to grow from $4.8 billion in 2024 to $8.0 billion in 2034. This represents a CAGR of 5.2%, reflecting rising demand across Emission Testing, Vehicle Endurance Testing and Engine Dynamometer Testing.
  • The market leaders Robert Bosch GmbH and Siemens AG and Honeywell International Inc. lead the market through their dominant position.
  • U.S. and Germany are the top markets within the Automotive Test Equipment market and are expected to observe the growth CAGR of 3.4% to 5.0% between 2024 and 2030.
  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 6.0% to 7.2%.
  • The market for Automotive Test Equipment will receive a $400.0 million boost from the transition known as Emergence of Telematics by 2030.
  • The Automotive Test Equipment market is set to add $3.2 billion between 2024 and 2034, with manufacturer targeting Performance Testing & Emission Testing Application projected to gain a larger market share.
  • With Increasing stringency of vehicle emission regulations, and Emergence of advanced technologies, Automotive Test Equipment market to expand 66% between 2024 and 2034.
automotive test equipment market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Automotive Test Equipment

Opportunities abound for the test equipment market by forming strategic partnerships with car manufacturers in today's landscape favoritng electric and autonomous vehicles. Join forces to create specialized test equipment for these cutting edge automotive technologies could yield positive results, for all parties involved. This collaborationis poised to expedite development processes set industry standards. Guarantee top notch automotive components production quality.

Growth Opportunities in North America and Europe

North America Outlook

North America plays a role in the Automotive Test Equipment market due to its strong automotive industry and ongoing focus on cutting edge technologies. The region experiences a growing need for testing equipment primarily because of the increasing popularity of electric and hybrid vehicles. The involvement of industry players spurs competition and drives rapid technological progress in the field of Automotive Test Equipment. Crucial factors driving this market in North America include government rules on vehicle emissions and steady growth, in the automotive repair and maintenance sector.

Europe Outlook

In Europe's Automotive Test Equipment industry has seen growth because of the strict vehicle safety regulations and the increasing desire for vehicles with reduced emissions in the region. Competitive manufacturers are dedicating resources to research and development to comply with the safety standards in the region. This surge in demand for Automotive Test Equipment is fueled by a growing market for autonomous vehicles that require more rigorous testing procedures. The rise in repair shops across the region also contributes to the need, for precise and dependable Automotive Test Equipment.

Market Dynamics and Supply Chain

01

Driver: Increasing Stringency of Vehicle Emission Regulations, and Escalating Consumer Demand for High-performance Vehicles

Countries around the world are also implementing regulations for vehicle emissions to address environmental issues that have also arisen in recent years. Essential in upholding these standards are also tools for testing automotive emissions, like emission testing devices. Market participants have also the opportunity to capitalizeon this trend by creating and enhancing effective emission testing equipment. Consumers today are also looking for top notch cars that they can also rely on for performance and durability more than before. As a result of this trend in consumer demand for high quality vehicles car manufacturers are also focusing on using testing tools to ensure and enhance the performance of their vehicles. Equipment like dynamometers, vehicle emission testing systems and wheel alignment testers could also see a surge in popularity due to this shift, in the market.
The swift rise of cutting edge technologies like self driving cars holds great importance for the automotive testing equipment industry sector as a whole. In order to guarantee safety and smooth operation methods manufacturers of electric vehicles rely on various kinds of automotive testing tools such as sophisticated ADAS testing systems and battery assessment gear. The increasing desire for these groundbreaking vehicles is also predicted to drive the demand, for testing equipment in the market.
02

Restraint: High Procurement and Maintenance Costs

In the automotive testing equipment market one major challenge is the high cost involved in purchasing and maintaining these machines Majority of the automotive testing equipment comes with steep price tags because they utilize cutting edge technology and perform complex functions Additionally the ongoing maintenance requirements of these machines contribute to their overall cost which could discourage potential buyers especially smaller automotive companies, with limited budgets from investing in such state of the art equipmentThis greatly influences the markets behavior by causing an imbalance, between the need and availability of products or services and constraining the markets expansion potential.
03

Opportunity: Augmented Reality in Test Equipment and Rising Demand for Electric Vehicles

By making use of the technological progressions in the field of automotive testing equipment can delve into the possibilities brought by Augmented Reality . This cutting edge technology has the capability to be utilized in the diagnosis and testing of vehicle mechanics which in turn enhances the accuracy and effectiveness of testing tools. Through ARs assistance experts are able to provide guidance during intricate testing procedures leading to enhanced identification of faults and consequently fueling the need, for automotive testing equipment.
The increasing demand among consumers for friendly electric vehicles represents a new opportunity for the automotive testing equipment industry to explore and expand its market reach by creating specialized tools to support the maintenance of key components such as batteries and charging systems in electric cars. A move that could drive market expansion significantly forward commercially and establish a strong foothold, in regions advocating sustainable transportation practices.
04

Challenge: Technical Complexity and Need for Skilled Personnel

The complexity of test equipment in the market is a key factor to consider along with the need, for skilled operators to handle them effectively and efficiently.

Supply Chain Landscape

1
Raw Material Suppliers

BASF

Dow Chemicals

2
Component & Parts Manufacturers

Bosch Auto Parts

Denso Corp

3
Manufacturers

Horiba Ltd.

AVL LIST GmbH

4
End-User Industry

Automotive

Aerospace & Defense

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Automotive Test Equipment in Emission Testing, Vehicle Endurance Testing & Engine Dynamometer Testing

Emission Testing

In today's growing focus on sustainability issues in the automotive sector emission testing plays a vital role in ensuring eco friendly practices are followed. Key tools like gas analyzers and smoke meters are commonly employed for this purpose. Their main function is to assess the substances released by vehicles with a particular emphasis placed on pollutants such as carbon monoxide, hydrocarbons and nitrogen oxides. Leading companies like Horiba Ltd. And Bosch Automotive Service Solutions Inc. Are well known for their top notch emission testing devices that hold a position, in the market.

Engine Dynamometer Testing

Automotive testing tools play a role in engine dynamometer testing procedures and evaluations of engine performance using dynos and accelerometer sensors to measure torque levels and rotation speed as well as power output metrics are essential practices in this field of study. Members of this industry include companies such, as AVL LIST GmbH and Superflow Dynamometers & Flowbenches known for their high quality and precision engine dynamometers.

Vehicle Endurance Testing

Testing the durability of vehicles is an use of automotive testing tools such as chassis dynamometers and climate chambers to assess their performance and reliability over time in different weather and road conditions. Companies like ABB Ltd and Siemens AG are well known for their endurance testing equipment, in the market.

Recent Developments

December 2024

Tektronix introduced an Automotive Test Equipment with enhanced diagnostics capabilities, for technicians to swiftly and precisely identify car problems.

November 2024

Softing AG has broadened its range of Automotive Test Equipment by introducing an option that enhances user convenience and mobility.

September 2024

Robert Bosch GmbH introduced their Automotive Testing Equipment powered by AI technology. This cutting edge system incorporates ML to enhance and simplify the testing procedures in the industry.

The market for Automotive Test Equipment has been experiencing changes in the past years due to advancements in technology and a greater emphasis on ensuring vehicle safety standards are met. For instance the rise of self driving vehicles has led to the need, for more advanced Automotive Test Equipment that can effectively evaluate intricate vehicle systems.

Impact of Industry Transitions on the Automotive Test Equipment Market

As a core segment of the Automotive & Mobility industry, the Automotive Test Equipment market develops in line with broader industry shifts. Over recent years, transitions such as Emergence of Telematics and Integration of AI in Testing Equipment have redefined priorities across the Automotive & Mobility sector, influencing how the Automotive Test Equipment market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Emergence of Telematics

The growing use of telematics in the car industry has led to a need for advanced Automotive Test Equipment as vehicles become more complex with real time updates on their condition and performance through wireless data communication technology. Consequently the evolution of telematics has driven the need, for high quality Automotive Test Equipment of conducting thorough system checks detecting faults and running diagnostics efficiently. This industry transition is expected to add $400 million in the industry revenue between 2024 and 2030.
02

Integration of AI in Testing Equipment

The use of intelligence in Automotive Test Equipment represents a notable shift in the industry landscape. AI brings capabilities to the table by anticipating problems and offering solutions before they arise. By incorporating AI into testing tools and systems automotive companies can conduct accurate and swift testing procedures that improve overall efficiency. This technologys influence reaches beyond the automotive sector impacting areas such, as manufacturing where AI powered testing approaches enhance product quality cut down testing durations and increase production output.

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