Automated test equipment or ATE automatically diagnose faults in different systems like integrated circuits, system-on-chips and packaged parts. Basically, they find defects in the DUTs or devices under tests. They are considered as the huge cost saving tools as far as the manufacturing costs to the organizations are concerned. Growing demand from around the world is a strong driver for the global automated test equipment market. The industry is expected to maintain impressive growth with the technological advancements, IT revolution around the world and impressive rise in demand from the emerging regions like Asia Pacific and Middle East. As a result, experts suggest stable future for the existing as well as potential players in this industry.

Segmentation in ATE Market

The global automated test equipment market is segmented on the basis of the types of components, application areas, types, and geographic regions. The basic components in the market include handler, mass interconnect, industrial PC, probers and others. Basic types include digital, mixed signal, memory chip and others. Basic application areas of these products include automotive, consumer electronics, medical and aerospace and defense. The geographic regions of the market include Asia pacific, Europe, North America, and the rest of the world. Analysis of all these segments provide critical information about the industry trends, drivers, challenges, competition and business opportunities for both existing and potential players in the market.

Market Drivers & Restraints

According to the experts, tremendous growth in the consumer electronics market is considered to be a vital driver for the global automated test equipment (ATE) market. The global market for ATE is driven by three vital factors, which include:

• High efficiency of the ATEs that increases the throughput
• Reduced manufacturing time and costs
• Strong rise in applications in the consumer electronics market

However, there are a few restraining factors for the industry. These factors include high competition amongst the industry manufacturers. Rising demand for the changes and modifications in the existing ATE technology and high costs associated with the testing components and testers are also expected to be the major restraining factors for the global market. Interfacing difficulties with DUT and fluctuating semiconductor industry are also expected to create several challenges for the industry players. However, commercialization of the internet of things and strong growth of the automotive market are expected to create business opportunities for the market.

What to Expect?

As per the latest forecasting reports, the global automated test equipment market is expected to maintain a steady CAGR of over 2.80% from 2014 to 2020. At the steady compound annual growth rate, the industry is anticipated to become worth more than $4.13 billion by the end of the year 2020. Asia Pacific region is expected to maintain strong edge over the global market, in terms of the market share, rise in demand and revenue channels. North America is also expected to witness impressive growth during the forecasting period.