How big is the automotive test equipment market | Trends, Size & Forecast

Q: How big is the automotive test equipment market?

The automotive test equipment market is projected to reach USD 6.2 billion by 2031.

Q: What is the CAGR of the automotive test equipment market?

The automotive test equipment market is expected to grow at a CAGR of 6.8% during the forecast period.

Q: Which areas of testing are seeing the most demand in the industry?

EV battery testing, ADAS validation, emission compliance, and onboard diagnostics are leading segments.

Q: How is electrification impacting the test equipment market?

Electrification is driving demand for high-voltage testing tools, battery simulators, and thermal management system testers.

Q: What are the challenges in the test equipment market?

Rapid tech evolution, high costs of advanced testing systems, and integration with vehicle software platforms are key challenges.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5351

Publication Date: Jul 2025

How big is the automotive test equipment market?

According to 6Wresearch internal database and industry insights, Global automotive test equipment market was valued at approximately USD 3.9 billion in 2024 and is projected to reach USD 6.2 billion by 2031. The market is expected to grow at a CAGR of 6.8% during the forecast period.

This growth is driven by the increasing complexity of automotive electronics, rising production of electric and hybrid vehicles, and stringent safety and emission regulations that require precise testing of vehicle components and systems. The shift toward connected and autonomous vehicles is also encouraging the adoption of advanced diagnostic and simulation tools.

Key Growth Factors of the Automotive Test Equipment Market

Rise in electronic content in vehicles requiring advanced diagnostic tools
Growing production of EVs and hybrids needing battery and motor testing
Stringent safety, emission, and performance regulations across various markets
Demand for real-time, remote, and automated vehicle testing systems
Expansion of R&D activities in autonomous and connected car platforms
Shift toward wireless and software-defined vehicle diagnostics

Automotive Test Equipment Market Trends

The market is witnessing strong adoption of mobile-based diagnostic tools and wireless test equipment. Cloud-integrated platforms are enabling remote diagnostics and predictive maintenance. Test equipment for electric drivetrains, ADAS systems, and onboard software is gaining traction. Additionally, modular and scalable test systems are being favored to accommodate evolving vehicle architectures.

Emerging Developments in the Automotive Test Equipment Market

AI-based diagnostics and automated fault detection tools are being developed for greater accuracy. Simulators and Hardware-in-the-Loop (HIL) systems are being used extensively in EV and ADAS testing. Cybersecurity testing tools for vehicle ECUs and networks are also emerging as critical. Virtual testing environments using digital twins are streamlining pre-production validation.