Transparency Market Research, in its latest market report, predicts that the automated test equipment (ATE) market will grow at a moderate CAGR of about 2.88% from 2012 through 2018. With this, the global automated test equipment (ATE) market, which stood at US$3.54 billion as of 2011, is expected to surpass US$4.36 billion by 2018. According to the report, the Asia Pacific ATE market will be the most important one from the market share perspective. In 2011, the APAC ATE market held a 75% stake globally, and will continue to remain in a strong position through the forecast period of this research report.The report is titled “Automated Test Equipment (ATE) Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 – 2018”.
Over the last decade, the use of and demand for electronic and telecom equipment has soared, causing a parallel growth in the telecom and electronics manufacturing industry. These modern manufacturing industries are also stirring up exciting changes in the overall automated test equipment (ATE) market. Integrated circuits that are embedded on a wafer need to be comprehensively tested to a myriad of parameters before they the die can be prepared. This highlights the importance of automated test equipment in the chip and wafer manufacturing industry.
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The role of automated test equipment (ATE) also comes into play after ICs have been packaged. They need to be tested again according to a number of test patterns. Automated test equipment is preferred because it is exceedingly accurate, fast and produces quantifiable results that help manufacturers meet stringent regulatory norms. These products are widely used in products such as televisions, smartphones, music players, digital cameras and computers. As each of these industries is undergoing a massive change currently, the automated test equipment (ATE) market needs to keep pace.
The TMR report also discusses factors that are driving the growth of the automated test equipment (ATE) market. The foremost among these is the upswing in semiconductor manufacturing activities throughout the world. This industry is getting more and more complex with every passing day, even as the size of wafers is becoming increasingly compact. Concepts such as the Internet of Things are an emerging trend that will also influence the electronics industry, which will in turn have a ripple effect on the automated test equipment (ATE) market as well.
According to the TMR report, the semiconductor industry is switching over to a 28 nm node manufacturing process for application processors. This will prove immensely favorable for the growth of the demand of IC testing equipment. Again, effects of this increased demand will help boost the automated test equipment (ATE) market.
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For achieving success in the automated test equipment (ATE) market, players will have to approach areas such as lower testing costs, faster turn times, and scaled-up production with a renewed focus. Players that make prudent investments in R&D, and achieve results from the same, are expected to gain a lead in the automated test equipment (ATE). Given that competition in the automated test equipment (ATE) market is growing at a rapid pace, R&D initiatives can be the advantage companies need.
The report also studies the competitive dynamics of the automated test equipment (ATE) market, and profiles leading players such as Teradyne, Inc., LTX-Credence Corporation, and Advantest Corporation.
By type, the report segments the ATE market as: Non-memory ATE, memory ATE, and discrete ATE. On similar lines, the market, by application, is split as: IT & Telecommunications, automotive electronics, consumer electronics, defense, and others. The report also segments the global automated test equipment (ATE) market by geography as: Asia Pacific, North America, Europe, and Rest of the World.