Published On: Sat, Dec 29th, 2012

Automated test equipment market growing at a CAGR of 2.88%

Automated test equipment market growing at a CAGR of 2.88%

Automated test equipment market growing at a CAGR of 2.88%

According to a new market report published by Transparency Market Research “Automated Test Equipment (ATE) Market – Global Industry Analysis, Size, Share and Forecast, 2012 – 2018”, the Automated Test Equipment (ATE) market was valued at US$3.54 billion in 2011 and is expected to reach US$4.36 billion in 2018, growing at a CAGR of 2.88% from 2012 to 2018.

The last few years have seen a considerable growth in the volume of electronics and telecom equipment manufactured. Integrated circuits on a wafer have to be tested prior to die preparation and this makes automated test equipment extremely vital for semiconductor manufacturing, the report comments.


Post the packaging of the integrated circuit, the packaged chips need to be tested again using a variety of special test patterns. Across the globe, semiconductor manufacturers use ATE to test the devices they manufacture and which are then incorporated in a variety of products ranging from televisions, personal computers, digital cameras, music players and mobile phones to mobile internet equipment and power management in automotive and portable electronics.

The report concludes that the main factors driving the demand for ATE include increase in the production of semiconductor devices, increase in the complexity and required performance level of semiconductors used in consumer electronic products and the emergence of next generation devices and technologies associated with these devices.


In addition, the rapid transition to a 28 nm node application processor manufacturing process will fuel the demand for IC testing equipment, which in turn will drive the growth of the ATE. Critical success factors in the market include reduction in testing costs, shorter time to market and increased production. Besides, companies need to focus on R&D to ensure that the products can keep up with the ever changing and developing semiconductor industry.