Test solutions for electric and autonomous vehicles set for rapid growth
The market for test solutions for electric vehicles, emission control, and autonomous vehicles is expected to create $2.81 billion in new revenue opportunities by 2024. Frost & Sullivan finds in its latest analysis, “Global Integrated Automotive Test Solutions, Forecast to 2024,” that partnerships and collaborations between test equipment manufacturers and technology companies developing and testing autonomous vehicles will boost the progress of next-generation test equipment. An assessment of key market dynamics, emerging automotive technologies, drivers, restraints, revenue forecasts, and market share and competitive analysis of key segments such as electronic, mechatronic, telematics and connectivity, and ECU functional test systems is also included in the forecast.
The complexity in modern-day automotive systems necessitates the comprehensive testing of both electronics and software. New entrants from adjacent markets such as information technology, safety systems, and cellular network providers are entering into the automotive telematics systems market, which opens up new growth opportunities for test system vendors.
"Owing to the high competition, telematics vendors are striving to develop innovative solutions such as voice-recognition, gesture-control systems, telematics control units, and advanced head-up displays, driving the need for robust testing solutions in their R&D and manufacturing divisions," said Jessy Cavazos, Measurement & Instrumentation industry Director at Frost & Sullivan. "In the future, advanced driver assistance systems (ADAS) technologies are likely to be integrated to build fully autonomous vehicles, further increasing the need for test equipment in the telematics market."
- Dynamometers and vehicle emission test segments are expected to provide significant prospects over the next five to seven years.
- The share of electronics in a single car is expected to increase from 40% (2017) to more than 55% by 2024.
- Automotive OEMs will begin to adopt standardized technical services to test and issue test results that will be primarily monitored by regulatory authorities, thereby opening up new opportunities for test equipment vendors and service providers.
- The global integrated automotive test solutions market is expected to grow at a CAGR of 6.8% from 2017 to 2024 to reach $2.81 billion by 2024.
- Rapid innovation in connected cars and autonomous vehicles, driving the need for electronic test equipment.
- New growth in key markets such as Japan, South Korea, and Singapore if test equipment vendors actively collaborate with these governments.
"Key challenges such as the conservative mindset of cost-conscious vehicle manufacturers and complexity in integrating mechatronic and electronic test systems are dissuading the adoption of new test equipment," noted Cavazos. "Furthermore, the continuous change in consumer needs is adversely affecting the current and future inventory of test equipment products."
For further information on this analysis, visit: http://frost.ly/2a6.