The global automated test equipment (ATE) market is expected to reach USD 4.59 billion by 2025, according to a new report by Grand View Research, Inc. Increasing adoption of System-on chip and high demand for consumer electronics are the key drivers for the market growth over the forecast period. Growing electronic content in automotive sector and penetration of smartphones is expected to drive the ATE market over the forecast period.

Miniaturization of devices has spurred ATE demand across various semiconductor manufacturing companies. Additionally, considerable technological advancements coupled with design complexity and the need for adequate testing is expected to impact the global ATE industry positively. Developments in the manufacturing processes of semiconductors and expansion of wireless networks in developing nations are expected to provide significant growth for the global ATE market over the coming years.

The growth of automated test equipment market is primarily driven by semiconductor manufacturing companies which focus on cost-effective testing. Semiconductor manufacturing companies no longer consider fabrication costs as a factor for profit margin in the manufacturing of semiconductor chips. Semiconductor companies focus on improving their fabrication technology and look for efficient ways of testing to reduce losses due to damages. Development of smartphones, tablets, and System-on-Chip (SoC)-based products is creating demand for greater functionality in ATE. As connected devices get smaller, more powerful, and multifaceted, they face design, application, and fabrication challenges, which increase the demand for ATE.

Increasing design complexities along with major technological inventions are some of the key drivers of the ATE market. Recent innovations in IoT devices and autonomous vehicles and significant changes in the defense and aerospace sectors have drastically changed the dynamics of the ATE market.

Non-Memory ATE is expected to have significant market share in the product segment over the forecast period. Revenue of ATE from IT & Telecommunications sector is projected to have significant growth, which is likely to boost the market demand over the forecast period.