Automated Test Equipment Market Size to Gain USD 11.48 Billion By 2034

The global automated test equipment market size was calculated at USD 7.29 billion in 2024 and is predicted to attain around USD 11.48 billion by 2034, expanding at a CAGR of 4.64% from 2025 to 2034.

Highlights of the Automated Test Equipment Market

• By region, North America dominated the global automated test equipment market in 2024.
• By region, Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
• By product, the non-memory ATE segment holds a dominant presence in the market in 2024.
• By end use, the IT and telecommunication segment dominated the market in 2024.

Industry Valuation and Growth Rate Projection

ATE systems are basically used to automate the testing procedure for printed circuit boards (PCBs), semiconductor apparatus, and other electronic components, offering a more efficient and accurate option for manual testing. As the complexity of electronic apparatus continues to increase, the requirement for ATE has grown remarkably, making it an important market in the technology sector. The market for ATE is also being boosted by the growing need for consumer electronics, such as tablets, smartphones, and wearables.

Automated Test Equipment Market: Stats and Figures

• In August 2024, Chroma ATE Inc. is excited to disclose its participation in SEMICON Taiwan 2024. This year's event, Chroma, will show a range of the latest semiconductor testing solutions adjusted for AI, High-Performance Computing (HPC), AIoT applications, and automotive, programmed to meet the rapidly evolving requirements of the industry.

Industry Leader Announcements

• Greg Smith, Teradyne CEO

“Rick’s leadership has been instrumental to the success of Teradyne’s Semiconductor Test Business over the past five years, and his view from a customer’s perspective was critical to that,” said Teradyne CEO Greg Smith. “We are thrilled to welcome Shannon to our leadership team and are confident that he will continue to strengthen our competitive position and accelerate the growth of the semiconductor test business.”

• Satish Dhanasekaran, President and Chief Executive Officer of Keysight

"Keysight's acquisition of ESI Group accelerates our strategy of providing software-centric solutions with virtual prototyping and advanced simulation capabilities. Keysight and ESI Group share rich cultures of innovation and strong commitments to solving customers' most complex challenges, which will enable value creation for all stakeholders. The Keysight team looks forward to working with the world-class talent at ESI Group to unlock opportunities and drive our combined success."

How AI Has Benefitted the Automated Test Equipment Market

AI-driven test automation influences artificial intelligence to improve and streamline the software testing process. AI significantly speeds up test automation, driving accuracy by rapidly detecting errors and root causes, as well as recommending fixes and connecting related tests. AI determines application behavior to detect gaps in test coverage and recommends the latest scenarios for more via evaluation. AI decreases testing cycles by automating repetitive tasks and prioritizing critical areas.

Recent Developments

• In October 2023, NI disclosed the latest initiative to deliver real-time semiconductor analytics solutions at the edge utilizing its NI Global Operations platform. This latest level of infrastructure and control opens the door for more developed and customized applications advanced by NI, platform users, and even third parties. The announcement is showcased by a new enablement layer around the NI GO ecosystem and initial incorporation with leading ATE vendor Teradyne.

Geographical Insights

The automated test equipment market is experiencing significant growth, with North America maintaining its position as the dominant region while Europe emerges as the rapidly growing market. The Asia Pacific region is projected to be the fastest-growing in the market during the forecast period.

North America

North America dominated the global automated test equipment market in 2024. The region has advantages from leading semiconductor producers, a focus on R&D, and a solid consumer electronics base. The US government's CHIPS and Science Act is likely to drive domestic semiconductor production and ATE usage.

Europe

Europe is experiencing rapid growth in the automated test equipment market during the forecast period. The rising acceptance of electric vehicles in Europe is essential for ATE to test batteries, power electronics, and ADAS (advanced driver-assistance systems). Government investments in semiconductor production and advanced manufacturing procedures in Europe are also driving the ATE market.

Asia Pacific

Asia Pacific is projected to be the fastest growing automated test equipment market during the forecast period. The region's solid manufacturing sector, especially in electronics, boosts the requirement for efficient and developed ATE solutions. The increased need for electronic devices, which includes smartphones and other consumer electronics, drives the requirement for automated testing solutions.

Competitive Landscape

The automated test equipment (ATE) market is featured by intense competition among key players such as Advantest, Teradyne, and Keysight, as well as regional players aiming at cost-effective solutions and emerging markets.

• Company Name: Astronics Corporation
• Year of Incorporation: 1968
• Headquarters: East Aurora, New York, United States

Astronics Corp offers power, connectivity, lighting, interiors, test solutions, semiconductor test systems, structures, and other technology solutions. The company also offers automated test systems, training and simulation devices, test management software, and safety equipment for military applications.

• Company Name: Teradyne Inc.
• Year of Incorporation: 1960
• Headquarters: North Reading, Massachusetts, United States

Teradyne Inc (Teradyne) designs, manufactures, develops, and sells various automated test systems and robotics products. Teradyne's products serve users in industries such as automotive, computing, consumer electronics, communications, industrial, aerospace, and defense. The firm uses a direct sales force and distributors, mainly for its robotics products.

• Company Name: Roos Instruments, Inc.
• Year of Incorporation: 1994
• Headquarters: Santa Clara, CA 95050, United States

Roos Instruments, Inc. tackles competition in the automated test equipment (ATE) market, mainly from firms specializing in RF and microwave testing solutions.