By the year 2023, it is estimated that the global test equipment market for passenger vehicles will be valued at nearly $300 million US dollars. This projection indicates a compound annual growth rate of 7.9 percent between 2016 and 2023. The global test equipment market for passenger vehicles is expected to experience a surge in growth between 2016 and 2023. A compound annual growth rate of 7.9 percent is expected, giving this industry a value of approximately $293 million US dollars. The global test equipment market for passenger vehicles incorporates vehicle-independent services, including on-demand navigation and infotainment, as well as vehicle-dependent services, including safety and security, usage-based insurance from one vehicle to another, and diagnostics.
The global test equipment market for passenger vehicles is mainly used as a means to make adjustments to the performance of vehicles. It also executes quality tests on vehicles. Test equipment is used to measure a variety of facets that impact the overall safety and efficiency of vehicles. These facets include:
This test equipment is also used as a means of measuring the impact on the following:
Some examples of test equipment for passenger vehicles include wheel alignment testers, vehicle emission test systems, engine dynamometer, chassis dynamometer, fatigue testing, tire plunger testers, fogging testers, impact testers, and more.
This testing equipment allows for better control over the stability of vehicles. It also improves the comfort of riding for passengers. The advantages are certainly fuelling the market for automotive test equipment.
The projected growth in the global test equipment for passenger vehicles market is expected to be driven by a variety of factors. Most notably, it will be driven by the increased demand from original equipment manufacturers, safety regulations and consumers to provide safer, more reliable and more comfortable vehicles. Moreover, the need to ensure vehicles are meeting environmental regulations is also expected to drive the growth of this market. Stringent regulation on emissions, including carbon dioxide and nitrogen oxide are necessitating an increased need for automotive testing equipment on a global scale, which will certainly give rise to the growth of this market.
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Despite the numerous factors that are expected to contribute to the increase of this market, and the projected compound annual growth rate, there is one notable challenge that could impact this market, preventing it from reaching its full potential. In the United State and Canada, as well as several other developed economies, the market lacks the maturity in order to experience full growth potential.
On a global scale, the test equipment market for passenger vehicles can be divided according to the type of product and the region.
The type of products used in the global test equipment market for passenger vehicles include:
There are several other types of equipment that are used in this market; however, the aforementioned are the most notable.
According to region, the global test equipment market for passenger vehicles can be divided as such:
In regard to market revenue, the Asian Pacific region is projected to see the fastest compound annual growth rate during the forecasted period. This is largely due to the increasing shift of original equipment manufacturers relocating their bases in this region. The reason for this shift is due to the low cost of production of tools used to test the safety and efficiency of passenger vehicles in the Asian Pacific region. Furthermore, there is a high demand for testing equipment in this region.
North America and Western Europe are considered matured markets for test equipment for passenger vehicles. These regions are projected to see a compound annual growth rate in the single digits in the forecasted period; about 4 to 5 percent.
There are several companies that are expected to contribute to the growth of this market in the forecasted time period. Some of the most notable players include Siemens AG, Robert Bosch gmb, Honeywell Industrial Inc, Delphi Automotive PLC, ABB Ltd, and Actia S.A.
These companies are expected to invest a large sum of money into the research and development of the tools that are used in testing equipment for passenger vehicles. As such, they are considered to be the key players in this market.
Given the projected compound annual growth rate of this market on a global scale and the increased need for testing equipment to ensure the safety and efficiency of vehicles, it is safe to say that this market will experience a positive growth trend. Beyond the forecasted period, it is also safe to assume that the market will continue to experience growth. As more passenger vehicles are introduced to the market, and more notably, the rise of autonomous vehicles in the future, there will undoubtedly be an increased need for testing equipment to further ensure safety and efficiency regulations are being met.
Investing in this market should prove to provide positive gains, given the projected outlook and the future of the market. Those who are interested in making a worthwhile investment should consider looking to opportunities in the global test equipment market for passenger vehicles. Currently, there are ample opportunities for investment, and there are sure to be even more investment opportunities in the near future.