According to the report by Technavio, the market is estimated to grow at a CAGR of 5 percent from 2023 to 2027.
The Asia-Pacific region, helped by large-scale electronics manufacturing in China and India, held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 43 percent over the forecast period.
The report analyzed the market for test equipment across a range of industries including consumer electronics, telecommunications, aerospace and defense.
Technavio reported that the consumer electronics segment anticipates significant market share growth, fueled by rising mobile device demand, leading to increasing demand for mixed-signal integrated circuits (ICs).
The report also identified the shift from desktop PCs to laptops helping the market through increasing laptop sales.
It also said that advancements in testing techniques for semiconductor testing, PCB testing, 5G and IoT device testing were contributing to the growth in test equipment sales.
According to the report, 43 percent of the estimated global market growth was set to come from the Asia-Pacific region as a result of major electronics companies outsourcing manufacturing to China and India.
The report noted: “Shifts are notable in segments like passive electronic components and semiconductor testing, leveraging the region's substantial labor pool. Government initiatives like 'Make in India' and 'New Open-Door policy' drive economic growth and attract foreign investments, with companies like Xiaomi and Samsung investing in manufacturing units, promising a significant driver for the ATE market.”