EV Test Equipment Market Worth $105 Million By 2026
According to the new market research report, EV Test Equipment Market, Global Forecast to 2026, published by MarketsandMarkets™, the global EV Test Equipment Market size is projected to grow from USD 42 million in 2021 to reach USD 105 million by 2026, at a CAGR of 20.1%.
The increasing demand for alternative fuel vehicles has fueled the growth of the market for electric vehicles. To reduce crude oil consumption, automotive emissions, and air pollution, governments around the world have adopted and implemented favorable policies which promote the use of electric vehicles. The increasing demand for electric vehicles is expected to fuel the growth of the market for electric vehicle testing equipment and related components.
Due to the increasing focus on the development of innovative battery technologies, high demand for vehicle electronic functions and features, and stringent emission standards, the demand for EV test equipment, software, and repair data is rising.
The Asia Pacific is projected to be the largest market for electric vehicle testing equipment during the forecast period. The Asia Pacific region is considered for China, Japan, South Korea, and India. This is due to the early adoption of public EVs in the Asia Pacific region leading to an increase in the demand for EV test equipment. Due to the increase in the sales of EVs in the region, especially in China, there is an increase in the demand for EV test equipment. The high preference for EVs, coupled with the increasing focus of governments on the adoption of EVs are expected to drive the growth of the market in the region.
Europe has implemented stringent emission regulation standards to cope with the rising emission levels. Several countries in the region are promoting electric vehicles by offering significant incentives. The demand for electric vehicle test equipment has increased significantly due to the rising use of low-emission vehicles in the region. Europe has set a very ambitious goal of reducing 80% CO2 emissions by 2050 and has created a roadmap for the same. Governments of various countries in Europe are subsidizing electric vehicle infrastructure and the focus is expected to be on electric vehicles in the long run. This is expected to lead to the high growth of the EV Test Equipment Market in the region.
The HEV segment is projected to lead the electric vehicle segment of the EV Test Equipment Market during the forecast period. As of 2021, HEV is certainly the most feasible and option due to the scarcity of charging stations and the high cost of BEVs, especially in cost-sensitive countries in the Asia Pacific. The BEV segment is projected to grow at a higher CAGR due to the regulations, subsidies, and zero-emission operation. Various test equipment providers are offering test systems such as e-axle, e-drive, and battery test systems for BEVs.
The EV Test Equipment Market is dominated by established players such as AVL (Austria), TUV Rheinland (Germany), teamtechnik (Germany), Chroma ATE (Taiwan), and HORIBA (Japan).