Automotive Test Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Two Wheelers, Passenger Cars, Commercial Vehicles), By Solution Type (Emission Test Equipment, Emission Test Software, Emission Test Services), By Product Type (Smoke Meter, Opacity meter, Other), By Region, Competition, 2018-2028

Forecast Period	2024-2028
Market Size (2022)	USD 3 Billion
CAGR (2023-2028)	5.78%
Fastest Growing Segment	Emission Test Services
Largest Market	Europe & CIS

 

Market Overview

Global Automotive Test Equipment Market has valued at USD 3 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.78% through 2028. Specialized test equipment designed for the automotive industry is used to evaluate and ensure the effectiveness of vehicles. Automobile test equipment can help extend the lifespan of a vehicle's smooth and dependable operation. It comes with everything required to test a car's operation and performance and find any problems. One of the main causes of global warming is the carbon dioxide (CO2), carbon monoxide (CO), nitrous oxide (N20), and methane (CH4) released by cars and other motorized vehicles. These gases play a significant role in the unfavorable socioeconomic and climate trends that exist today and in the future. Cars intended to transport passengers are known as passenger cars. Due to the growing requirement to guarantee that mass-produced automobiles adhere to all relevant safety and environmental regulations globally, automotive test equipment is in high demand.

Market Drivers

Stringent Emission Standards and Regulations

The primary driver of the global automotive emission test equipment market is the continuous tightening of emission standards and regulations imposed by governments and international bodies. Environmental concerns, air quality improvement, and the fight against climate change have led to increasingly strict limits on vehicle emissions. In response to these regulations, automotive manufacturers are compelled to develop cleaner and more fuel-efficient vehicles to meet the prescribed emission targets. To ensure compliance and reduce harmful emissions, they require advanced emission test equipment that can accurately measure emissions and assess the performance of their vehicles. The demand for sophisticated testing equipment is expected to grow as emission standards become more stringent. This represents a significant opportunity for manufacturers of emission test equipment to develop innovative, highly accurate, and versatile solutions that cater to the evolving requirements of emissions testing. These regulatory changes also necessitate collaboration between equipment manufacturers, automotive companies, and regulatory bodies to ensure that the equipment aligns with the latest standards and can effectively address the challenges posed by stricter regulations.

Global Push for Environmental Sustainability

Another driving force in the global automotive emission test equipment market is the worldwide push for environmental sustainability. With a growing awareness of the detrimental effects of vehicle emissions on the environment, there is an increased focus on reducing the carbon footprint of the automotive industry. Governments, international organizations, and consumers are demanding greener and more sustainable transportation options. Hybrid and electric vehicles (EVs) are gaining traction as alternatives to traditional internal combustion engine (ICE) vehicles. These eco-friendly alternatives have zero tailpipe emissions and are seen as a means to combat climate change and air pollution. While EVs do not produce tailpipe emissions, they are not entirely exempt from emissions. Emissions from electricity generation, manufacturing processes, and the entire lifecycle of EVs must be considered. This highlights the importance of accurate emissions testing throughout the life of an EV, including during production and charging. Equipment manufacturers can capitalize on this trend by developing emission test equipment that can assess emissions associated with the entire lifecycle of a vehicle, including electric and hybrid powertrains. The demand for testing equipment that can accurately measure indirect emissions, such as those from electricity generation, is expected to increase as the automotive industry continues its shift toward sustainability.

Technological Advancements in Emission Measurement

The automotive emission test equipment market is being driven by significant technological advancements in emission measurement. Traditional methods have evolved to meet the demands of stringent regulations and the growing complexity of emissions from various types of vehicles. Advanced technologies in emission measurement include remote sensing devices, which can assess emissions while vehicles are on the road. These devices offer real-world data that complements laboratory testing, providing valuable insights into actual emissions during everyday driving conditions. Portable emissions measurement systems (PEMS) have gained popularity due to their ability to measure emissions in real-time as vehicles operate on the road. PEMS devices can be used both on-road and in testing facilities, offering a comprehensive picture of emissions performance. In the laboratory, Fourier-transform infrared (FTIR) spectrometry and laser-induced breakdown spectroscopy (LIBS) are becoming more prominent for their precision in measuring emissions, including greenhouse gases (GHGs). These technologies offer highly accurate and real-time monitoring of exhaust gases. Equipment manufacturers that embrace these advanced measurement technologies can offer more comprehensive, accurate, and real-time data to their customers. The ability to provide precise measurements and a broader range of emission data is a significant selling point for equipment suppliers. These technological advancements are integral to the development of more effective and efficient testing solutions, aligning with the industry's growing demand for higher accuracy and data quality. Equipment suppliers that invest in research and development to incorporate these advanced technologies into their products are likely to experience increased demand for their solutions.

Global Harmonization of Testing Procedures

The trend toward global harmonization of testing procedures is another driving factor in the global automotive emission test equipment market. Differences in emissions standards and testing protocols across regions have created the need for versatile and adaptable equipment that can be used in various markets. Global harmonization aims to facilitate international trade, reduce testing redundancies, and improve the efficiency of emissions testing. Regulatory bodies, automotive manufacturers, and equipment suppliers are collaborating to establish common testing protocols that can be recognized and accepted worldwide. Notable efforts in this direction include the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) and the Real Driving Emissions (RDE) test in Europe. These testing procedures seek to provide a more realistic assessment of emissions during real-world driving conditions, reducing the gap between laboratory measurements and actual on-road emissions. In the United States, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) are working on aligning their emission and fuel economy testing procedures with international standards. The goal is to create a single set of global emissions standards and testing protocols that would be widely adopted. Manufacturers of emission test equipment have the opportunity to lead the way in global harmonization by developing solutions that can be easily customized to meet the specific requirements of different regions. Versatility and adaptability are key selling points for equipment suppliers aiming to serve a global market. Collaboration with international regulatory bodies and industry associations is essential to ensure that equipment aligns with evolving global standards. Equipment manufacturers that embrace this trend and proactively work toward global harmonization can position themselves as leaders in the market.

Digitalization and Data Integration

Digitalization and data integration are emerging trends in the global automotive emission test equipment market. The growing volume of data generated during emissions testing presents both challenges and opportunities. Digitalization has enabled the development of integrated testing systems that collect, process, and analyze data in real-time, enhancing the efficiency and accuracy of emissions testing. Digital solutions are helping equipment manufacturers offer more user-friendly and automated testing equipment. These solutions can streamline the testing process, improve the reliability of data, and reduce the potential for human error. Data integration is also crucial for ensuring data traceability and compliance with regulatory requirements. The integration of data management and analysis tools in emission test equipment allows for more comprehensive assessments of emissions data. Equipment suppliers are offering advanced software solutions that provide real-time data visualization, trend analysis, and reporting capabilities. These digital tools enable users to quickly identify and address emissions-related issues and make informed decisions about vehicle development and compliance. Moreover, the digitalization of emission test equipment facilitates remote access and monitoring, allowing users to control and manage testing equipment from anywhere, improving the efficiency of testing facilities and reducing operational costs. Manufacturers of emission test equipment need to embrace the trend of digitalization and data integration to stay competitive in the market. Offering comprehensive, user-friendly, and digitally connected solutions can enhance customer satisfaction and streamline the testing process. As data becomes increasingly important in emissions testing, equipment suppliers must also focus on data security and privacy to protect sensitive information.

 

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Key Market Challenges

Rising Stringency of Emissions Standards and Regulations

The most prominent challenge in the global automotive emission test equipment market is the continuous escalation of emissions standards and regulations across the globe. Governments and regulatory bodies are imposing stricter limits on vehicle emissions to address environmental concerns and combat climate change. As a result, automotive manufacturers are under constant pressure to develop cleaner and more fuel-efficient vehicles. This rising stringency directly impacts the demand for advanced emission test equipment. The equipment must be highly accurate, capable of detecting even minor emissions, and compatible with a wide range of vehicle types, including traditional internal combustion engine (ICE) vehicles and electric vehicles (EVs). Meeting these requirements is not only a technical challenge but also an economic one, as manufacturers need to invest in research and development to keep up with evolving standards. Additionally, the global variation in emissions regulations creates a challenge for manufacturers of emission test equipment. Different regions have distinct emissions standards, and equipment needs to be adaptable to various requirements. To address this challenge, manufacturers must design versatile systems that can be customized to meet specific regional standards, making their equipment marketable on a global scale.

Proliferation of Advanced Vehicle Technologies

The rapid advancement of automotive technologies presents a significant challenge to the automotive emission test equipment market. Modern vehicles are equipped with a plethora of advanced features, such as hybrid and electric powertrains, advanced driver assistance systems (ADAS), and connected technologies. These innovations impact not only the vehicle design but also the complexity of emissions testing. Hybrid and electric vehicles, for instance, introduce challenges in emissions testing due to their unique powertrains. Emission test equipment must adapt to assess electric vehicles, which produce zero tailpipe emissions but still require testing for indirect emissions related to electricity generation and energy consumption. Additionally, the presence of ADAS and connectivity features can affect engine performance, emissions, and overall vehicle behavior, necessitating specialized equipment to accurately assess emissions in such vehicles. The integration of these advanced technologies into vehicles poses another challenge for emission test equipment manufacturers. They must ensure that their equipment can handle the diverse and evolving technological landscape. To address this, manufacturers need to stay ahead of the curve, continuously updating their testing equipment to accommodate new vehicle technologies and their impact on emissions.

Global Variations in Testing Protocols and Procedures

The global automotive emission test equipment market faces the challenge of adapting to diverse emissions testing protocols and procedures used across different regions. Each region or country may employ its own standards and testing methods, making it imperative for manufacturers of emission test equipment to produce adaptable and versatile systems that can accommodate these variations. Variations in testing protocols extend to the types of emissions being monitored and the testing conditions. For example, some regions focus on tailpipe emissions, while others also assess evaporative emissions. Additionally, testing conditions may differ in terms of temperature, humidity, and altitude. This requires emission test equipment to be versatile and able to simulate various environmental conditions to provide accurate results. Harmonizing testing procedures across regions is a considerable challenge, given the diverse regulatory environments and the unique characteristics of each market. Manufacturers must invest in research and development to create emission test equipment that can accommodate these variations, making their products adaptable to the global market. Collaboration with international regulatory bodies to establish common testing protocols is an important step in addressing this challenge.

Technological Complexity and Cost of Equipment

The development of advanced emission test equipment to meet evolving regulatory requirements is inherently complex. Emission testing has moved beyond measuring traditional pollutants like carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter (PM) to include more nuanced assessments of emissions, such as greenhouse gases (GHGs). This complexity necessitates highly specialized equipment that can accurately detect and quantify these emissions. Furthermore, the cost of developing and manufacturing advanced emission test equipment is substantial. Research and development efforts to create highly accurate and versatile systems require significant investment. This cost is often passed on to the end-users, including vehicle manufacturers, regulatory bodies, and emissions testing facilities. Managing the balance between producing sophisticated equipment that meets evolving requirements and keeping costs reasonable for the industry is a challenge faced by equipment manufacturers. The challenge of technological complexity and cost is compounded by the need for regular equipment maintenance and calibration to ensure accurate and reliable results. Maintenance and calibration costs add to the overall operational expenses, further impacting the economics of emissions testing.

Cybersecurity and Data Privacy Concerns

With the increasing integration of electronic systems into vehicles and testing equipment, the automotive emission test equipment market faces growing cybersecurity and data privacy concerns. The advanced communication and data-sharing capabilities of modern emission test equipment, especially when connected to diagnostic ports or vehicle networks, pose potential vulnerabilities that could be exploited by malicious actors. Protecting the integrity of emission test equipment is crucial to ensure the accuracy and reliability of emissions measurements. Unauthorized access or tampering with the equipment can lead to inaccurate test results, which can have serious consequences, including regulatory non-compliance and potential legal issues for vehicle manufacturers. Data privacy concerns also arise as emission test equipment collects and stores sensitive data related to vehicles, including their emissions profiles and performance. Safeguarding this data is essential to protect vehicle manufacturers and their customers from data breaches and privacy violations. Addressing these cybersecurity and data privacy challenges requires manufacturers to implement robust security measures, such as encryption, authentication, and intrusion detection systems, to protect the integrity of emission test equipment. Additionally, manufacturers must comply with data privacy regulations and ensure that customer data is handled in a secure and responsible manner.

Key Market Trends

Stringent Emission Regulations Driving Demand for Advanced Testing Equipment

The most prominent trend in the global automotive emission test equipment market is the increasing stringency of emission regulations and standards imposed by governments and international organizations. With a focus on mitigating air pollution, reducing greenhouse gas emissions, and addressing climate change, regulators are pushing for stricter limits on vehicle emissions. Consequently, automakers are under immense pressure to develop cleaner and more fuel-efficient vehicles. The need for more rigorous emissions control has led to a significant increase in the demand for advanced emission test equipment. These tools must be capable of detecting even minor emissions, and the measurements they provide need to be highly accurate. This trend has driven the development of cutting-edge testing solutions that can assess a broad range of pollutants, including carbon dioxide (CO2), nitrogen oxides (NOx), particulate matter (PM), volatile organic compounds (VOCs), and greenhouse gases (GHGs). Manufacturers of emission test equipment are focusing on creating highly sensitive and versatile devices that can meet the evolving requirements of emission regulations. This includes developing technology that can detect GHG emissions, an area that has gained prominence with the global emphasis on reducing carbon footprints. Additionally, emission test equipment manufacturers are expanding their product offerings to cover a wide range of vehicle types, including internal combustion engine (ICE) vehicles, hybrid powertrains, and electric vehicles (EVs). As emissions standards continue to tighten, the demand for advanced testing solutions is expected to grow, providing a significant opportunity for manufacturers to expand their market presence.

Proliferation of Advanced Emission Measurement Technologies

A key trend in the global automotive emission test equipment market is the proliferation of advanced emission measurement technologies. Traditional emission testing methods have evolved significantly to meet the stringent requirements of modern regulations and to address the complexity of emissions from various vehicle types. Advanced technologies in emission measurement include remote sensing devices, which can assess emissions while vehicles are on the road, offering real-world data that complements laboratory testing. These devices provide valuable insights into actual emissions during everyday driving conditions. Additionally, portable emissions measurement systems (PEMS) have gained popularity for their ability to measure emissions in real-time as vehicles are in operation. PEMS devices can be used on the road or in testing facilities, providing a comprehensive picture of emissions performance. In the laboratory, Fourier-transform infrared (FTIR) spectrometry and laser-induced breakdown spectroscopy (LIBS) are becoming more prominent for their precision in measuring emissions, including GHGs. These technologies offer highly accurate and real-time monitoring of exhaust gases. Manufacturers of emission test equipment are embracing these advanced measurement technologies to offer more comprehensive, accurate, and real-time data to their customers. The ability to provide precise measurements and a broader range of emission data is a significant selling point for equipment suppliers. Moreover, the integration of these advanced technologies contributes to the development of more effective and efficient testing solutions, aligning with the industry's growing demand for higher accuracy and data quality.

Global Harmonization of Testing Procedures

Another notable trend in the global automotive emission test equipment market is the move toward global harmonization of testing procedures. With differences in emissions standards and testing protocols across regions, manufacturers of emission test equipment are working to create versatile and adaptable solutions that can be used in various markets. The need for global harmonization arises from the desire to facilitate international trade and reduce testing redundancies. Regulatory bodies, automotive manufacturers, and equipment suppliers are collaborating to establish common testing protocols that can be recognized and accepted worldwide. The introduction of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) and the Real Driving Emissions (RDE) test in Europe represents significant steps toward global harmonization. These testing procedures aim to provide a more realistic assessment of emissions during real-world driving conditions, reducing the gap between laboratory measurements and actual on-road emissions. In the United States, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) have been working on aligning their emission and fuel economy testing procedures with international standards. The goal is to create a single set of global emissions standards and testing protocols that would be widely adopted. Manufacturers of emission test equipment have an opportunity to lead the way in global harmonization by developing solutions that can be easily customized to meet the specific requirements of different regions. Versatility and adaptability are key selling points for equipment suppliers aiming to serve a global market. Collaboration with international regulatory bodies and industry associations is essential to ensure that equipment aligns with evolving global standards.

Digitalization and Data Integration

Digitalization and data integration are emerging trends in the global automotive emission test equipment market. The growing volume of data generated during emissions testing presents both challenges and opportunities. Digitalization has enabled the development of integrated testing systems that collect, process, and analyze data in real time, enhancing the efficiency and accuracy of emissions testing. Digital solutions are helping equipment manufacturers offer more user-friendly and automated testing equipment. These solutions can streamline the testing process, improve the reliability of data, and reduce the potential for human error. Data integration is also crucial for ensuring data traceability and compliance with regulatory requirements. The integration of data management and analysis tools in emission test equipment allows for more comprehensive assessments of emissions data. Equipment suppliers are offering advanced software solutions that provide real-time data visualization, trend analysis, and reporting capabilities. These digital tools enable users to quickly identify and address emissions-related issues and make informed decisions about vehicle development and compliance. Moreover, the digitalization of emission test equipment facilitates remote access and monitoring, allowing users to control and manage testing equipment from anywhere, improving the efficiency of testing facilities and reducing operational costs. Manufacturers of emission test equipment need to embrace the trend of digitalization and data integration to stay competitive in the market. Offering comprehensive, user-friendly, and digitally connected solutions can enhance customer satisfaction and streamline the testing process. As data becomes increasingly important in emissions testing, equipment suppliers must also focus on data security and privacy to protect sensitive information.

Growing Focus on Remote and On-Road Emissions Testing

A notable trend in the global automotive emission test equipment market is the growing focus on remote and on-road emissions testing. Traditional laboratory testing remains important, but regulators and industry stakeholders recognize the need for assessing emissions under real-world driving conditions. Remote sensing devices, which can assess emissions from vehicles as they travel on the road, are gaining prominence. These devices provide valuable data on emissions during actual driving conditions, offering insights into the performance of vehicles in the field. Remote sensing devices are often used for initial screening and can help regulators identify high-emission vehicles that may require further testing. Portable emissions measurement systems (PEMS) are another key element of on-road emissions testing. PEMS devices can measure emissions in real time during on-road driving, allowing for comprehensive assessment of a vehicle's emissions performance under different conditions. The emphasis on remote and on-road emissions testing underscores the need for emission test equipment that can operate in a variety of settings.

Segmental Insights

Solution Type Analysis

The market for automotive emission test equipment was led by the emission test equipment segment. It is expected to maintain its dominance throughout the projection period due to the global increase in demand for testing equipment. Comparing this segment to the software segment, it has a larger market share. The market for emission test services is predicted to grow at the fastest rate due to the growing focus on lowering greenhouse gas emissions from passenger and light-duty vehicles, particularly in developing nations like China and India. Through recurring technical inspection, these services assist in making sure that vehicle exhaust systems are functioning within accepted norms and constraints. Growing use of service businesses, especially in developing countries, is fueling the segment's expansion as well.

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Regional Insights

The market for automotive emission test equipment was dominated by the European Union. As mandated by the European Union, nations in the region like the United Kingdom, Germany, and France are leading the way in implementing strict rules and regulations pertaining to vehicle emission testing. The region with the highest predicted CAGR over the projection period is Asia Pacific. The region's growing urbanization is pushing the introduction and execution of several initiatives by the participating nations to control and monitor vehicle emissions. In addition, the area is becoming the hub for the largest auto manufacturing due to low car production costs. Over the course of the forecast period, North America is expected to experience notable growth. The United States is a major adopter in the region.

Recent Developments

• Actia set up its vehicle inspection centers with test benches for motorcycles, light vehicles, and heavy goods vehicles in Laos and the Philippines in March 2020. Under the name QWIK, the first forty inspection centers were established in the Philippines.
• Technical improvements to the Bosch FSA7 40 vehicle system analysis and BEA 950 emission tester were made by Robert Bosch in November 2019. The ergonomic trolley and 48V system measurement option are available on the FSA 740. Today, a 24-inch large screen has been added to the emission analysis BEA 950 device.
• Siemens released the most recent version of its Simcenter Testlab software suite in June 2018. This software suite is used for test-based performance engineering in the primary domains of noise and vibration. It includes tools for data collection, analytics, and modeling.

Key Market Players

• Opus Inspection
• Gemco Equipment Ltd
• TOV Nord Group
• CAPELEC
• HORIBA, Ltd.
• Applus
• SGS SA
• AVL LIST GmbH
• TEXA S.p.A.

By Vehicle Type	By Solution Type	By Product Type	By Region
Two Wheelers Passenger Cars Commercial Vehicles	Emission Test Equipment Emission Test Software Emission Test Services	Smoke Meter Opacity meter Others	North America Europe & CIS Asia Pacific South America Middle East & Africa

 

Report Scope:

In this report, the Global Automotive Test Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Test Equipment Market, By Vehicle Type:

o   Two Wheeler

o   Passenger Cars

o   Commercial Vehicles

• Automotive Test Equipment Market, By Solution Type:

o   Emission Test Equipment

o   Emission Test Software

o   Emission Test Services

• Automotive Test Equipment Market, By Product Type:

o   Smoke Meter

o   Opacity meter

o   Others

• Automotive Test Equipment Market, By Region:

o   Asia-Pacific

§  China

§  India

§  Japan

§  Indonesia

§  Thailand

§  South Korea

§  Australia

o   Europe & CIS

§  Germany

§  Spain

§  France

§  Russia

§  Italy

§  United Kingdom

§  Belgium

o   North America

§  United States

§  Canada

§  Mexico

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Turkey

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Test Equipment Market.

Available Customizations:

Global Automotive Test Equipment market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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