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
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| 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 |
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Market Overview
Global Automotive Test Equipment Market worth USD 3 billion in 2022 and is expected to forecast good growth in the study period with a CAGR of 5.78% during 2028.
Automotive industry-specific test equipment is employed to test and verify the efficiency of vehicles. Test equipment for automobiles can assist in lengthening the duration of a vehicle's smooth and reliable functioning. It has all that is needed to test the operation and performance of a car and identify any faults. The carbon dioxide (CO2), carbon monoxide (CO), nitrous oxide (N20), and methane (CH4) emitted by cars and other motor vehicles are among the primary causes of global warming. These gases contribute significantly to the undesirable socioeconomic and climatic trends of today and tomorrow. Vehicles designed to carry passengers are referred to as passenger cars. With the increasing need to ensure that mass-produced vehicles meet all applicable safety and environmental standards worldwide, automotive test equipment is highly sought after.
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.
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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.
Key Market Challenges
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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 retailers 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
Strict Emission Standards Spurring Need for Sophisticated Testing Equipment
The leading trend in the global automotive emission test equipment market is the rising strictness of emission standards and regulations set by governments and international agencies. Focused on preventing air pollution, curbing greenhouse gas emissions, and combating climate change, regulators are compelling tighter standards on vehicle emissions. As a result, car manufacturers face tremendous pressure to produce cleaner, more fuel-efficient cars. There has been strong demand for stricter emissions control that has boosted demand for sophisticated emission test equipment by leaps and bounds. Such equipment needs to detect even small levels of emissions, and the reading they offer needs to be of very high precision. This trend has propelled the creation of state-of-the-art testing technologies capable of measuring a wide variety of pollutants such as carbon dioxide (CO2), nitrogen oxides (NOx), particulate matter (PM), volatile organic compounds (VOCs), and greenhouse gases (GHGs). Emission test equipment manufacturers are working on developing very sensitive and multifunctional devices capable of accommodating the changing demands of emissions regulations. These incorporate the development of technology able to identify GHG emissions, where the issue has come under sharper focus given international focus on curtailing carbon traces. Equipment developers for testing emissions are further introducing their equipment models to provide across-the-board test solutions to as wide an extent of automobiles, including those for internal combustion engine (ICE), hybrid drive configurations, and electric vehicles (EVs). With tightening emissions standards, the need for sophisticated testing solutions is anticipated to increase, and it presents a valuable opportunity for companies to increase their market share.
Spread of Advanced Emission Measurement Technologies
The spread of advanced emission measurement technologies is a major trend in the global automotive emission test equipment market. 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. Also, portable emissions measurement systems (PEMS) have become more popular due to their capacity for real-time emissions measurement while the vehicles are running. PEMS equipment can be applied on roads or in the laboratory and can give an extensive overview of the emissions performance. In the laboratory, FTIR spectrometry and LIBS are gaining increased importance for their accuracy in determining emissions, such as GHGs. These technologies provide very accurate and real-time measurements of exhaust gases. Emission test equipment manufacturers are adopting these new measurement technologies to provide more complete, accurate, and real-time information to their customers. The capability to deliver accurate measurements and more emission data is a major selling feature for equipment suppliers. In addition, integration of these new technologies helps achieve more efficient and effective testing solutions in accordance with the increasing demand from the industry for higher data quality and accuracy.
Global Harmonization of Testing Procedures
Yet another significant trend in the global automotive emission test equipment market is towards global harmonization of testing procedures. With varying standards for emissions and test procedures from one region to another, manufacturers of emission testing equipment are attempting to develop universal and flexible solutions to be employed across markets. The call for worldwide harmonization is based on the need to allow international trade while eliminating the need for duplicate testing. Automotive producers, regulators, and equipment makers are cooperating in the creation of uniform testing practices that will be accepted and recognizable globally. The implementation of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) and the Real Driving Emissions (RDE) test in Europe is a major move toward global harmonization. The testing processes are designed to more accurately reflect the emissions under real driving situations, narrowing the gap between laboratory test results and actual on-road emission levels. In the United States, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) have been attempting to bring their emission and fuel economy testing procedures into conformity with global standards. The objective is to establish a unified set of worldwide emissions standards and testing regimens that would be globally accepted. Emission test equipment manufacturers can take the lead in global harmonization by creating solutions that are easily adaptable to the unique needs of various regions. Adaptability and versatility are major selling points for equipment suppliers targeting a global market. International regulatory agencies and industry associations must be worked with to ensure that equipment is compatible with changing global standards.
Digitalization and Data Integration
Data integration and digitalization are upcoming trends for the global market for automotive emission test equipment. Increasing amounts of data created when performing emissions tests offer both an opportunity and challenge. Digitalization facilitated the emergence of integrated test systems that are collecting, processing, and evaluating data in real-time, raising the efficiency and precision of testing emissions. Digital technology is making equipment suppliers deliver more intuitive and automated test equipment. These solutions have the ability to simplify the testing process, enhance the accuracy of data, and minimize the likelihood of human error. Data integration is also important for guaranteeing data traceability and regulatory compliance. The combination of data management and analysis tools in emission test equipment enables more detailed evaluation of emissions data. Equipment manufacturers are providing sophisticated software packages that support real-time visualization of data, trend analysis, and reporting functionality. These electronic tools allow customers to rapidly locate and correct emissions-related problems and make well-informed decisions on vehicle development and conformity. In addition, digitalization of emission test equipment provides remote access and monitoring capabilities for users, enabling them to operate and manage test equipment remotely from any location, enhancing testing facility efficiency and lowering operational expenses. Companies that produce emission test equipment must adopt the trend of data integration and digitalization in order to remain competitive. Providing complete, user-friendly, and digitally integrated solutions can improve customer satisfaction and simplify testing processes. As data continues to play a more significant role in emissions testing, equipment manufacturers also need to be concerned with data privacy and security to safeguard sensitive data.
Increased Emphasis on Remote and On-Road Emissions Testing
One of the trends in the global automotive emission test equipment market is the increased emphasis on remote and on-road emissions testing. While laboratory testing is still crucial, authorities and industry players see the importance of emissions assessment under actual driving conditions. Remote sensing equipment, which can measure emissions from cars as they move along the road, is becoming increasingly popular. Remote sensing equipment offers useful information on emissions under real driving conditions, providing insights into the on-road performance of vehicles. Remote sensing equipment is usually applied for preliminary screening and can assist regulators in identifying high-emitting vehicles that can be subjected to further testing. Portable emissions measurement systems (PEMS) are yet another critical component of on-road emissions testing. PEMS units can capture real-time emissions when a vehicle is driven on-road, enabling total evaluation of the emissions performance of a vehicle in various operating conditions. The focus on remote and on-road testing highlights the necessity for emission testing equipment that will function in various environments.
Segmental Insights
Solution Type Analysis
The automotive emission test equipment market was dominated by the emission test equipment segment. It is projected to continue its leadership during the forecast period as a result of the worldwide growth in demand for test equipment. If this segment is compared to the software segment, it enjoys a greater market share. Emission test service is anticipated to advance at the fastest pace in line with the increased emphasis on reducing greenhouse gas emissions from passenger vehicles and light-duty trucks, specifically in emerging markets such as India and China. By regular technical inspection, they help ensure exhaust systems in motor vehicles operate according to acceptable parameters and limits. Increased application of service companies, particularly in developing nations, is also driving the growth of the segment.
Regional Insights
The European Union dominated the automotive emission test equipment market. Based on the regulatory requirements of the European Union, countries in this region such as the United Kingdom, Germany, and France are spearheading efforts to adopt tough rules and regulations related to testing emissions from automobiles. The market with the best forecasted CAGR during the forecast period is Asia Pacific. The urbanization of the region is driving the introduction and implementation of various measures by the participating countries to regulate and monitor emissions from vehicles. Besides, the region is also becoming the center for the world's largest car manufacturing because of cheap car manufacturing costs. During the forecast period, North America is likely to witness significant growth. The United States is a leading adopter in the region.
Recent Developments
- Actia setup its vehicle inspection centers with test benches for motorcycles, lightvehicles, and heavy goods vehicles in Laos and the Philippines in March 2020.Under the name QWIK, the first forty inspection centers were established in thePhilippines.
- Technicalimprovements to the Bosch FSA7 40 vehicle system analysis and BEA 950 emissiontester were made by Robert Bosch in November 2019. The ergonomic trolley and48V system measurement option are available on the FSA 740. Today, a 24-inchlarge screen has been added to the emission analysis BEA 950 device.
- Siemensreleased the most recent version of its Simcenter Testlab software suite inJune 2018. This software suite is used for test-based performance engineeringin the primary domains of noise and vibration. It includes tools for datacollection, 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.
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