Global Automated Test Equipment Market is estimated to reach USD 4.48 billion by 2020: Hexa Research Inc.

Market Research Report On “Global Automated Test Equipment” ATE market has potential for high growth due to demand from consumer electronics industry.

Automated Test Equipment Market (ATE) is mainly employed to test the performance and functionality of the device being tested, which is known as Device Under Test (DUT). Owing to the cost efficient high volume testing characteristics, this equipment is being used widely in electronic industry.The market is largely dependent on semiconductor chip volume; increasing chip volume is expected to drive global ATE demand.

Growing complexity in design coupled with increasing range of consumer electronics products has generated effective testing equipment demand, which is expected to be addressed by ATE devices. The consolidated nature of the global market coupled with complete dependency on the cyclic nature of the semiconductor industry may hamper market growth. The global ATE market is estimated to reach USD 4.48 billion by 2020.

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Development of wireless networks with growing need for green and energy effective ICs has enabled market participants to remain competitive. Technological advancements in manufacturing processes of semiconductor industry are expected to provide growth opportunity for the ATE market within the forecast period.

Product Insights

Key product segments include memory, non-memory and discrete systems. Non-memory system was estimated at over 70% of the global market share in 2013 and is expected to be the dominant segment. This is mainly due to increased automotive demand, growing number of microcontroller-based applications, increased proliferation of smartphones and development of Long Term Evolution (LTE) wireless communication standards into the market. Non-memory ATE is in high demand among various applications. Memory ATE has witnessed more cyclical variations in growth rate than non-memory ATE, which is expected to continue over the forecast period.

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Application Insights

On the basis of application, the ATE market is segregated into IT & telecommunication, automotive, consumer and defense. IT & telecommunication was estimated to be over 50% of the global market in 2013 and is expected to be the most dominant market by 2020. This can mainly be attributed to increased emphasis on effective communication and production of tablets, smartphones as well as computers. Increased demand for smart electronics and new product development in the consumer electronics market has led to a considerable market share in the global ATE market. Automotive sector is also expected to exhibit significant growth with the increased incorporation of sophisticated electronic devices in automobiles.

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Regional Insights

Asia Pacific was estimated to account for over 70% of the market share in 2013 and is estimated to be the dominant market over the forecast period. This may be attributed to rapid technological development and existence of a large number of semiconductor industries in the region. U.S., Japan, South Korea and Taiwan constitute the key regional markets. Increased adoption and changing customer needs is expected to create favorable growth prospects in the RoW region.

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Hexa Research Inc. is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.

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