Electric Vehicle Test Equipment Market Size By Product (Stationary Battery Testing Equipment and Portable Battery Testing Equipment) Equipment Type (Transmission Dynamometer, Inverter Test Equipment, Battery Test Equipment, Motor Test Equipment, Chassis Dynamometer, On Board Charger Test Equipment, and Others), Propulsion Type (Battery Electric Vehicle, Hybrid Electric Vehicle, and Plug-in Electric Vehicle), Vehicle Type (Passenger Vehicle and Commercial Vehicle), Application (EV Component and Drivetrain, EV Charging, and Powertrain), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 -2032

Market Perspective

The global Electric Vehicle Test Equipment Market size was worth around USD 50.66 million in 2022 and is anticipated to grow to around USD 582.71 million by 2032 at a CAGR of around 28.3 % between 2023 and 2032.

Electric vehicle testing equipment is mainly used to check various components of an electric car, such as the engine, battery, and others to keep auto parts ahead of the competition, ensure performance, and provide customer safety and satisfaction.

Growth in sales of electric cars and semi-autonomous and autonomous vehicles is a major factor driving the demand for electric car testing during the forecast period. Consumers are increasingly focused on personal devices, and the availability of customized battery testing equipment lines up with sophisticated developments is augmenting market growth. In the EV Component and Drivetrain industry, batteries are tested over a long period of time to provide a reliable basis for a battery life guarantee.

Therefore, high-precision battery testing equipment shortens this period, which leads to early adoption and production of electric vehicles. Therefore, the demand for precision battery testing equipment affects the development of battery testing equipment in the market. Consumers see devices and software systems that enable and monitor the condition and life cycle of batteries as a cost-effective alternative to frequent battery replacements.

On the supply side, manufacturers have expanded test equipment services by offering short- and long-term rental services. In addition, the market still faces many obstacles, including a scarcity of skilled labor and high technology prices. The lack of trained laborers compared to industry demands, the complexity of material selection, and inappropriate settings are the main factors slowing down the growth.

In addition to this, the increase in the development of electric vehicle charging stations and the increase in demand from developing economies would continue to create new opportunities for manufacturers of the electric vehicle testing equipment market during the forecast period.

Governments around the world have passed and implemented laws encouraging the use of electric cars to also reduce oil consumption, car emissions, and air pollution. The market for electric vehicle testing equipment and other related components is expected to develop in response to the growing demand for electric vehicles. The demand for EV test equipment, software, and repair data is also exploding, driven by an increased focus on developing new battery technologies, high demand for vehicle electrical features and capabilities, and strict emissions regulations.

Key Insights

• Based on the product, the portable battery testing equipment segment held the largest market share
• Based on equipment type, chassis dynamometer segments are expected to dominate over the forecast period
• Based on the propulsion type, the battery electric vehicle segment generated the highest revenue
• Based on the vehicle type, the commercial vehicle segment held the largest market share
• Based on application, the EV charging segment generated the highest revenue
• On the basis of region, Asia Pacific accounted largest market share

Proactive Government Initiatives Promoting Electric Vehicles to Drive Market Growth

Electric vehicles have grown in popularity in recent years as technology has advanced with increasing support for green transportation has facilitated the adoption of electric cars. In addition, growing concerns about vehicle emissions and the depletion of non-renewable energy resources have attracted the attention of several governments to invest in electric vehicles. Production and sales of electric vehicles worldwide have also grown strongly, attributable to a positive regulatory environment, such as industry and consumer subsidies and tax exemptions. For instance, the Canadian federal government announced the new target that about 10% of new passenger cars are expected to sold in 2025 and 30% by 2030.

Also, government programs in countries such as China, India, France and the United States promote the adoption of alternative fuels and hybrid vehicles in these regions. This has led to the proliferation of electric vehicles (EVs) in the EV Component and Drivetrain industry. In addition, emission standards implemented by national and regional authorities are driving research into fuel efficiency technologies, which has led to rapid growth in the technical development of electric vehicle testing equipment.

In addition, the District of Columbia will offer incentives in 2021 to support the deployment of electric or alternative fuel vehicles and supporting infrastructure, either through state legislation or incentives from public and private companies. Legislative incentives include initiatives that provide exemptions for high-occupancy vehicles (HOVs), financial incentives for the purchase of electric vehicles or electric vehicle equipment (EVSEs), exemptions for vehicle inspections or emissions testing, parking incentives, and reductions in user fees. Thus, proactive initiatives by government organizations to promote electric vehicles accelerate market growth.

High Cost of Electric Vehicle Test Equipment Restricts Market Growth

Advanced electric vehicle test equipment used to test electric or hybrid vehicles is more expensive than traditional test equipment. Entry-level passenger cars are in high demand in emerging economies, and automakers must offer their products at competitive prices. As a result, expensive test equipment can be a deterrent. There is always a trade-off between the costs of product innovation and the savings of traditional products. The high cost of advanced electric vehicle testing equipment and the lack of standard protocol for their development are critical factors for electric vehicle test equipment market growth.

In addition, the number of manufacturers and tool developers is decreasing, making it more expensive and limiting its growth. As a result, the increase in application complexity and associated cost of individual testing equipment may hinder the growth of the market. The cost associated with hardware testing remains high as there are fewer tool developers, which makes them more expensive and thus affects its growth. Thus, the high cost of high-tech equipment for electric vehicles and the lack of a standard protocol for their development are critical factors that may hinder the market for electric vehicle testing equipment.

Advancements in Battery Testing Technologies Provides Opportunities for the Market

In recent years, car manufacturers have gradually invested in the development and design of electric vehicles that have led to mobility and transportation. In addition, the development of electric vehicle charging stations, the technological development of testing equipment, and the growing demand for internal diagnostic tools are driving the demand for these devices. Technological advances in areas such as autonomous and connected vehicles require highly calibrated and advanced systems to repair and maintain them. Thus, the development of electric vehicle testing equipment and systems offers many opportunities to pave the way for market growth.

Technological advances such as connected and autonomous vehicles also require highly calibrated and sophisticated systems. The development of these systems offers job opportunities in test equipment, paving the way for the growth of the global electric vehicle market. The new developments in battery chemistry are expected to help improve the performance of lithium-ion batteries and their innovative battery testing systems.

The rapid development of battery technologies is expected to demand new and improved battery testing systems, which fosters the electric vehicle test equipment market growth. Furthermore, Technological advances in areas such as autonomous and connected vehicles require highly calibrated and advanced systems to repair and maintain them. The development of electric vehicle testing equipment and systems thus offers a wide field of activity that paves the way for market growth.

Recent Development

In March 2023: A new Quantum Drive Platform was introduced by Unico with the goal of assisting businesses in the development and validation of electric car batteries and in the reduction of installation and continuing operational expenses.

In March 2023: KESM Industries Bhd invested nearly USD 31.73 million, mostly in new testing equipment, to expand the electric vehicle range as new chips for electric cars required intensive testing and certifications from new testers which have accelerated the production.

Segmentation Analysis

Based on equipment type, the market is divided into transmission dynamometer, inverter test equipment, battery test equipment, motor test equipment, chassis dynamometer, onboard charger test equipment, and others. The chassis dynamometer segment is the dominating segment as it is used for a variety of vehicle testing and development application and is the prominent part of the system in a motor vehicle that transmits power to the drive wheels.

Based on vehicle type, the market is classified into passenger vehicles and commercial vehicles. The passenger car segment accounts for the highest share of the global market. The dominance can be attributed to various factors, including the increasing urban population and their commuting needs.

Based on propulsion type, the market is segmented into battery electric vehicles, hybrid electric vehicles, and plug-in electric vehicles. The increased emphasis on building a charging infrastructure and government assistance, particularly for BEV-type vehicles, and the segment's ability to withstand energy storage capacity, influence consumer preference for buying BEVs.

Regional Landscape

Asia Pacific is the Dominating Region Owing to the Rapid Development of Electric Cars

Asia Pacific is the dominating market owing to the rapid development of electric cars, which is accelerating the development of this market. The growth of this region is due to its large population in countries such as China and India, which account for more than 38% of the world's population. In addition, favorable government initiatives to encourage the EV Component and Drivetrain industry through subsidies for the use of electric vehicles augment the market growth. China is a significant market due to aggressive government policies to increase EV adoption, as well as a growing number of EV testing companies.

The rapid expansion of the manufacturing industry across the region is likely to create a platform for electric vehicles, which in turn is likely to increase the testing facilities for the electric car market across the region. Cheap labor, significant production volumes of electric cars, and low production costs in developing countries such as China and India attract vehicle manufacturers to locate in these countries. Therefore, increasing research & development centers and production units are set up in the countries across the region.

Europe is the Fastest Growing Region Availability of Advanced R&D Services for EV Testing

Europe is projected to be the fastest-growing market owing to the rapid expansion of electric vehicle components in the region is also boosting the testing equipment in the electric vehicle market. The availability of advanced R&D services for EV testing likely indicates significant growth in EV test equipment across Europe. In addition, stringent government regulations on road safety and increasing support for electrification of the EV Component and Drivetrain industry are driving the electric vehicle test equipment market share.

There is a significant demand for BEVs and HEVs in the countries with the most EV readiness in Europe visible in Germany, France, and the UK. Germany and the United Kingdom anticipate their goal of phasing out fossil fuel vehicles, in line with the plans of these European countries. Spain and France are expected to be the fastest-growing electric vehicle testing equipment markets in the region due to government support for the growth of electric cars and related industries in these countries. The adoption of electric mobility is gaining traction in a number of European nations which is contributing to the growth of the electric vehicle test equipment market.

Competitive Landscape

• ABB
• Arbin Instruments
• AVL
• HORIBA
• Intertek Group plc
• KESM INDUSTRIES BERHAD
• Schneider Electric SE
• Teledyne Technologies
• TÜV Rheinland
• Unico, LLC (CGI Technology)

The global electric vehicle test equipment market is segmented as follows:

By Product

• Stationary Battery Testing Equipment
• Portable Battery Testing Equipment

By Equipment Type

• Transmission Dynamometer
• Inverter Test Equipment
• Battery Test Equipment
• Motor Test Equipment
• Chassis Dynamometer
• On Board Charger Test Equipment
• Others

By Propulsion Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-in Electric Vehicle

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Application

• EV Component and Drivetrain
• EV Charging
• Powertrain

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America