Automotive Test Equipment Market Size, Share & Trends Analysis Report By Product (Chassis Dynamometer, Engine Dynamometer), By Vehicle Type (Passenger Vehicle), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global automotive test equipment market size was valued at USD 2.3 billion in 2019 and is expected to register a compound annual growth rate (CAGR) of 4.5% from 2020 to 2027. The automotive test equipment is used to perform quality control tests to evaluate and ensure the effective performance of the vehicles. Automotive test equipment helps to maintain efficiency of the vehicle and thus plays an important role in enhancing the vehicle’s overall life. It consists of all the equipment and devices that are used to detect the faults by testing vehicle performance and operation. This includes testing the engine oil consumption, lubricant aeration impact on handbrake tension fuel dilution, and so on.  

The market for automotive test equipment is witnessing growth ascribed to the increasing utilization of electronic components in the modern vehicle. Moreover, growing automobile production coupled with increasing preference for electric vehicles is driving the demand for automotive test equipment. The industry has shifted its focus on electric vehicles and hybrid vehicles attributed to the growing concerns of carbon emissions from conventional fuel-driven vehicles and other forms of transportation. Fuel efficiency standards and emission norms have been major factors for increased awareness of electric vehicles from a consumer perspective. Stringent regulations and norms for improving fuel efficiency by reducing vehicular emissions are laid down by governments of several nations across the globe.

Rising vehicle production and growing awareness of vehicle testing has resulted in an increased demand for the installation of automotive test equipment at the OEM. Additionally, these devices provide better riding comfort and stability of the vehicle which is further anticipated to catapult the demand over the forecast period. Moreover, the increasing demand for safety and comfort features has led the automotive suppliers and OEMs to engage in research and development for testing of electronic components and to comply with the government regulations. As safety is a major concern for automotive manufacturers, it is expected to drive the demand for automotive test equipment over the coming years.

High cost of advanced automotive test devices, lack of standard protocol for their development, lack of skilled labor, are some of the key factors affecting the growth of the market for automotive test equipment. However, the growing demand for high-performance vehicles, improving economies of developing countries, demand for on-board diagnostic tools are anticipated to offer growth opportunities over the forecast period.

Product Insights

The chassis dynamometer held the largest revenue share of 37.2% in 2019. This is ascribed to the low-cost production and rising number of vehicle manufacturing facilities in developing nations. Additionally, it also helps to determine the overall performance of a vehicle’s drivetrain as well as is commonly used for emission testing and mileage accumulation.  Other product segments in the market for automotive test equipment include engine dynamometer, wheel alignment tester, and vehicle emission test system. Dynamometer is a device used to measure power, force, or torque.  During standard emission testing cycles, chassis dynamometer and engine dynamometer offers simulated road loading of chassis and engine respectively.

The vehicle emission test system, however, is anticipated to emerge as the fastest-growing segment in the market for automotive test equipment by 2027. This is attributed to the rising concerns regarding vehicle emissions, demand for lower carbon footprint coupled with stringent government norms. Wheel alignment tester accounted for healthy growth in 2019. It helps in adjusting the angles of wheels to specifications provided by the manufacturers.

Vehicle Type Insights

The passenger car segment accounted for the highest market share of 57.7% in 2019. The segment is also anticipated to continue its dominance by witnessing the fastest growth rate in the market for automotive test equipment by 2027. The rising purchasing power of customers coupled with the increasing demand for passenger vehicles across the developed and emerging nations have contributed to segment growth.

The increasing stringency of mandates pertaining to vehicle safety performance has catapulted the demand for automotive test equipment. The Light Commercial Vehicle (LCV) and Heavy Commercial Vehicle (HCV) segment are anticipated to witness healthy growth over the forecast period. The LCV segment accounted for over USD 700 million in 2019. HCV on the other hand is anticipated to witness a CAGR of over 1.5% by 2027 in the automotive test equipment market.

Application Insights

The handheld scan tool segment held the largest revenue share of 42.0% in 2019 and is anticipated to continue its dominance in the market for automotive test equipment over the forecast period. Handheld scan devices include vacuum and air pressure testers, thermometers, battery testers, gas analyzers, fuel pressure testers, and emission analyzers.

PC/laptop-based equipment also accounted for a substantial revenue share in 2019. It is primarily a bundle of hardware and software encompassing all the required cables and software. Such tools are used to estimate torque and horsepower, calculate fuel efficiency, and are capable to plot and log sensor data. Thus, they are preferred by several technicians to extract and analyze the vehicle component data. The mobile device-based scan tool segment is estimated to witness a CAGR of 5.9%. This is attributed to the ability of these tools to avoid human errors, portability, and ease of handling.

Regional Insights

Asia Pacific held the largest market share of 41.2% in 2019. The region forms the hub for automobile production. The rising consumer purchasing power is driving the demand for automobiles in the region. Also, owing to the low production cost and availability of cheap labor, many OEMs have either built the production facilities or collaborated with domestic vehicle manufacturers. Asia Pacific is the home to automotive test equipment key suppliers and is expected to emerge as the fastest-growing region by 2027 ascribed to the progressive improvements in the safety systems and technological advancements.

Europe also held a considerable market share in 2019. The region has a presence of several well-established automobile companies. Furthermore, manufacturers in the region are engaging in providing excellent safety features that are tested as per several safety criteria owing to the acceptance of safety certification. Latin America and Middle East and Africa are also anticipated to witness significant growth owing to the rising demand for efficient safety systems in the regions.

Key Companies & Market Share Insights

Key players have strong distribution networks and adopt various strategies to maintain a competitive edge and to achieve a higher market share. Mergers and acquisitions, partnerships, and contractual agreements are being undertaken by these players to grow and expand in the market for automotive test equipment. Moreover, the companies are also focusing on research and development activities to introduce a new and differentiated product in the market for automotive test equipment. Some of the prominent players in the automotive test equipment market include:

• Bosch

• Siemens

• Delphi Technologies

• Continental

• Honeywell

• ABB

• Softing

• Horiba

• SGS

Automotive Test Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive test equipment market report on the basis of product, vehicle type, application, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Chassis Dynamometer

  • Engine Dynamometer

  • Wheel Alignment Tester

  • Vehicle Emission Test System

• Vehicle Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Passenger Vehicle

  • Light Commercial Vehicle

  • Heavy Commercial Vehicle

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Handheld Scan Tool

  • Mobile Device-Based Scan Tool

  • PC/Laptop-Based Scan Tool

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa