DELRAY BEACH, Fla., Sept. 4, 2025 /PRNewswire/ -- The automotive test equipment market is projected to reach USD 4.79 billion by 2032 from USD 3.66 billion in 2025 at a CAGR of 3.9%, according to a new report by MarketsandMarkets. The regulations, such as Euro 7 and US EPA 2027, require automakers to deploy advanced testing equipment for tighter emissions, particle tracking, and safety compliance. The expansion of Over-the-Air (OTA) updates and software-defined vehicles is increasing the need for hardware-in-the-loop (HiL) and cybersecurity testing to validate complex software-hardware interactions. At the same time, localized production and global platform sharing are driving standardization and automation in validation, creating demand for flexible, modular, and globally compliant test systems. Also, OEMs are increasingly prioritizing total cost of ownership, driving demand for predictive and preventive testing solutions. Companies can gain a competitive edge by offering cloud-based, AI-driven test analytics that enhance testing efficiency and accelerate time-to-market. In September 2023, AVL deployed cloud simulation tools for hybrid and electric powertrain validation. Additionally, providing advanced simulation and digital twin solutions for virtual testing and rapid prototyping, along with predictive analytics to anticipate component failures, enables OEMs and suppliers to strengthen product lifecycle management and reinforce market leadership.
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Wheel alignment tester systems are expected to account for the largest market share during the forecast period.
Wheel alignment testers impact the automotive test equipment market by moving from low-cost maintenance tools to high-value diagnostic platforms. Modern systems use 3D camera technology with up to 0.01° angular measurement accuracy and support wheelbase ranges of 1,800-4,200 mm, suitable for both passenger cars and light commercial vehicles. Some testers, like advanced 3D aligners, deliver results within 2 to 3 minutes of setup time compared to 15-20 minutes with older laser systems. High-end models also integrate ADAS calibration frames capable of aligning radars and cameras within ±0.02° tolerance, making them indispensable in post-repair calibration workflows. This evolution directly raises the average selling price of alignment testers, often from under USD 10,000 for older laser-based models to USD 25,000-40,000 for 3D/ADAS-integrated systems, lifting the market value of this segment. OEM assembly lines, particularly in Europe and North America, now mandate such testers for end-of-line validation, locking in supplier contracts and driving steady CAPEX inflows. In the aftermarket, authorized service centers are required to replace outdated models, generating recurring equipment sales. Major global providers of wheel alignment testers include Hunter, John Bean (Snap-on), Bosch, Hofmann, Corghi, Beissbarth, and Ravaglioli, while regional players like Manatec, Tech Fanatics, Icon Autocraft, and Star Electra serve the Asia Pacific market. Premium workshops prefer Hunter and John Bean for precision and durability, whereas Indian OEMs and service centers often adopt cost-effective systems from Manatec and Tech Fanatics.
EV is expected to be the fastest-growing propulsion segment of the market during the forecast period.
The EV testing equipment market grew at a much faster pace than ICE testing due to the rising complexity and safety-critical demands of electric powertrains. While ICE testing relied on mature tools such as chassis dynamometers and emission analyzers, EVs required advanced validation systems for high-voltage batteries, e-axles, and power electronics. For instance, in June 2024, AVL expanded its battery validation centers in Europe with facilities supporting more than 1,000 charge-discharge lifecycle tests, impedance spectroscopy, and dendrite detection. Horiba announced in April 2024 the commissioning of new labs focused on high-voltage safety and powertrain durability for EVs. Battery testing became a key growth driver, with OEMs requiring abuse testing for thermal runaway at cell, module, and pack levels under conditions ranging from -40°C to +80°C. In March 2024, Applus+ IDIADA inaugurated its thermal runaway lab in Spain to strengthen EV safety validation. E-axle testing also advanced rapidly, with test rigs designed to handle torque levels above 10,000 Nm at high speeds-far beyond conventional ICE bench requirements. In contrast, ICE testing in 2024 remained limited to compliance-driven emission and durability checks, reflecting a plateau in demand. This divergence highlighted how EV testing, supported by continuous investment and new technical requirements, was reshaping the automotive validation landscape more dynamically than ICE testing.
Asia Pacific is expected to be the leading market during the forecast period.
The Asia Pacific has become the largest market for automotive test equipment, driven primarily by country-specific production scale, regulatory requirements, and technological adoption. The demand for EV and ICE test equipment in the Asia Pacific is accelerating, driven by increasingly stringent regulations on emissions, durability, and safety across China, India, Japan, and Southeast Asia. Compliance requirements extend beyond tailpipe emissions to in-use performance, battery recycling, and local homologation standards, compelling automakers and suppliers to invest in advanced emissions analyzers, battery testing rigs, hardware-in-the-loop systems, and all-weather reliability chambers. Rising vehicle and component exports from the Asia Pacific further necessitate standardized test protocols to meet diverse overseas certifications, driving investment in flexible, automated test benches and rapid validation infrastructure.
Asia Pacific's leadership roots from its dense manufacturing base in China, Japan, India, and South Korea, where OEMs such as BYD, Tata, Hyundai, Toyota, and Suzuki, together with equipment leaders including Horiba, Chroma, AVL, and Yokogawa, anchor procurement and R&D strategies. Expansion is focused on regional test labs, AI-enabled automation, and strategic partnerships, exemplified by Chroma's new battery testing centers in Taiwan and China. For example, in March 2024, a major Chinese EV OEM deployed Horiba and AVL engine and battery testing systems to ensure fleet efficiency, while in July 2024, Hyundai Motor India implemented mobile and PC-based diagnostic platforms for EV validation. The most dynamic growth is in battery cyclers, end-of-line state-of-health testers, portable emissions measurement systems (PEMS), vibration and crash rigs, and high-voltage safety analyzer solutions tailored to regulatory and export imperatives rather than generic EV or ICE adoption trends.
Key Market Players of Automotive Test Equipment Industry:
Prominent players in the Automotive Test Equipment Companies include AVL (Austria), Horiba, Ltd. (Japan), Robert Bosch GmbH (Germany), Phinia Inc. (US), and Illinois Tool Works Inc. (US).
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This report provides insights on:
- Analysis of key drivers (Increasing demand for specialized test systems for hybrid and EV platforms, stringent regulatory standards for automotive testing, shift toward advanced automotive testing technologies), restraints (capital-intensive infrastructure for test equipment manufacturers, in-house capability preference for automotive testing), opportunities (Test-as-a-Service and cloud-integrated virtual labs, convergence toward X-in-the-Loop (XiL) technology, localized, compact test benches for Tier-2 and mid-sized suppliers), and challenges (heterogeneous validation needs across OEMs, high complexity in ADAS and ECU co-validation, lack of standardization in battery testing protocols) influencing the growth of the automotive test equipment market
- Product Development/Innovation: Detailed insights into upcoming technologies, R&D activities, and product launches in the automotive test equipment market
- Market Development: Comprehensive information about lucrative markets (the report analyzes the automotive test equipment across various regions)
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the automotive test equipment market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like AVL (Austria), Horiba, Ltd. (Japan), Robert Bosch GmbH (Germany), Phinia Inc. (US), and Illinois Tool Works Inc. (US) in the automotive test equipment market
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