Electric Vehicle (EV) Test Equipment Market (By Type: Hybrid electric vehicles, Plug-in hybrid vehicles, Battery electric vehicles; By Vehicle: Passenger Vehicle, Commercial Vehicle; By Equipments; By Class: Low price, Medium price, Luxury; By Speed: More than 125MPH, Less than 125MPH; By Charging Point: Normal charging, Super charging; By Application; By End User) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global electric vehicle (ev) test equipment market size was exhibited at USD 66.58 million in 2022 and is projected to hit around USD 550.92 million by 2032, growing at a CAGR of 23.53% during the forecast period 2023 to 2032.

Key Pointers:

• By vehicle class, the mid-priced segment held 64% market share in 2021.
• The luxury segment is growing at a CAGR of 25.8% from 2023 to 2032.
• By application, the powertrain segment accounted market share of over 48% in 2022.
• The EV charging segment is growing at a CAGR of 25.5% from 2023 to 2032.
• Asia Pacific region accounted highest revenue share of over 42% in 2022.
• Europe region is growing at a CAGR of 26.6% between 2023 and 2032.

Factors such as increasing pollution and the threat of global warming have accentuated the need to replace petroleum-fuel vehicles with emission-free substitutes. The increasing demand for electric vehicles is expected to fuel the growth of the market for electric vehicle testing equipment and related components.

After decades of R&D, the industry has found electric vehicles to be the best suitable substitute for traditionally fueled vehicles, which has resulted in the growth of the market for electric vehicles. The increasing demand for zero-emission vehicles is also likely to boost electric vehicle sales. Automotive OEMs focus on the electrification of vehicles as consumers become increasingly aware of the impact of vehicular emissions on the environment.

Electric Vehicle (EV) Test Equipment Market Report Scope

EV Test Equipment Market Dynamics:

How advancements in battery technology increase the growth of EV test Equipment market?

The battery is a major component in an electric vehicle. The majority of electric vehicles use either a lithium-ion family battery or a lead-acid battery. New developments in battery chemistry are expected to help increase the efficiency of lithium-ion batteries and test systems for these innovative battery packs. This is expected to boost the demand for EV test equipment.

Research is underway to increase the range of electric vehicles and reduce costs. Thus, various OEMs have started offering electric vehicles with a range of more than 300-350 km and long battery life. The research focuses on conventional lithium-ion, solid-state, advanced lithium-ion using an intermetallic anode (silicon alloy composite), and future advanced lithium-ion (lithium metal, including lithium-sulfur and lithium-cobalt) batteries with innovative designs and chemistries. Such rapid developments in battery technologies are expected to lead to the demand for new and advanced battery testing systems/platforms/software, thereby driving the EV test equipment market.

Why is decrease in subsidies for EVs in major Markets is a critical restraining factor that is holding back growth of market?

Purchase subsidies for EVs were reduced in key markets such as China and France. For example, the Chinese Ministry of Finance announced plans to reduce subsidies associated with electric cars by approximately 32% by 2022. However, vehicles for public transport and those costing below USD 42,000 are expected to continue to receive subsidies, with the new rules only affecting luxury car brands. As the Chinese Ministry of Finance only provides subsidies for cars with high battery capacities, EV battery manufacturers must provide electric vehicles with high-capacity batteries to ensure that the vehicles fall are in the subsidized range. This is expected to affect EV sales, as subsidies are the most important reason for customers from emerging economies to buy electric vehicles. The decline in sales is expected to affect the EV test equipment market.

What opportunities does increase in technological advancements of test equipment create?

Governments across the globe are promoting the adoption of hybrid and electric vehicles, as these are environment-friendly and fuel-efficient. Emission norms implemented by national and regional government authorities are driving research in fuel-efficient technologies. There has been a rapid increase in technological advancements in EV test equipment. This can be majorly attributed to the increased demand for fuel-efficient vehicles. Various EV test equipment manufacturers such as HORIBA (Japan) and Intertek (UK) are investing significantly in vehicle testing equipment and expanding their vehicle testing segments. Manufacturers are focusing on developing efficient and technologically advanced test equipment. The latest generation chassis dynamometers are characterized by modular designs. They offer enhanced performance, which helps reduce installation and maintenance costs. These dynamometers are also capable of testing vehicles according to Indian emission norms, the European Emission Standards (EEC), and the US Environmental Protection Agency (EPA) emission regulations. The advanced chassis dynamometer covers various applications for automotive testing such as emission testing, performance testing, and NVH (noise, vibration, and harshness) testing. Such innovations in testing equipment are expected to drive the growth of the market.

How challenge in maintaining balance between high cost and performance of test equipment impact market?

The dilemma faced by the automotive industry is between technological innovation and cost reduction. Technologies such as advanced EV test equipment used for electric, or hybrid vehicle testing are higher priced compared to conventional test equipment. New technologies require time for their adoption as manufacturers also require time in experiencing economies of scale. In emerging economies, entry-level passenger cars are in demand and automotive manufacturers need to provide their products at competitive prices. Thus, high-priced test equipment can be a hindrance. There is always a trade off between the cost incurred on product innovation and cost reduction in conventional products. The challenge, therefore, is to develop EV test equipment that is efficient and economical at the same time.

Canada is expected to witness significant growth in North America market during the forecast period

The country’s electric vehicle and infrastructure market is expected to grow at a significant rate due to subsidies and tax exemptions offered by the Canadian government. The Canadian government is investing significantly in building EV charging infrastructure. The government has offered rebates to EV buyers as well as subsidies to OEMs and EV manufacturers. It is also focused on promoting a zero-emission mode of travel.

The government is also investing significantly in R&D activities. In 2022, a USD 600 million fund was allocated to provide subsidies and additional rebates. In 2021, the Government of Quebec set up a USD 6.7 billion fund for the next six years to encourage the electrification of transportation and combat the climate crisis. In 2021, the British Columbia government committed USD 499 million towards EV purchase incentives, growth of EV charging infrastructure, and energy efficiency plans for new buildings. The EV test equipment market is expected to grow due to the rising demand for EVs in the country.

Brazil is estimated to witness significant growth for EV Test Equipment market during the forecast period

Brazil is estimated to account for the largest share of the RoW EV test equipment market during the forecast years. Several leading OEMs, including BMW, Volkswagen, Nissan, Ford, General Motors, Toyota, and Honda, have established manufacturing units in Brazil, making the country a major automobile hub in South America. The country has promoted the use of EVs with the implementation of various government policies, such as reduced taxes for EVs from time to time over the years, leading to increasing demand for EVs. It has also promoted the development of EV charging networks across its states. This is expected to lead to a higher demand for EV testing equipment in the country.

The Asia Pacific market is projected to hold the largest share by 2032

Governments in the Asia Pacific region are also focusing on the introduction of electric commercial vehicles. For instance, in India, the government announced the introduction of 10,000 electric buses and provided incentives for battery-operated cars and two-wheelers on Indian roads. In September 2020, the Indian government announced plans to offer incentives worth USD 10.6 billion to companies establishing advanced battery manufacturing facilities as part of its plans to reduce oil imports while switching to EVs. Similarly, in China undertook measures such as sales tax exemptions and providing preferential financing and traffic management policies for electric vehicles. Japan also plans to increase its share of EVs and plug-in hybrids between 28% and 40% by 2032 and has taken measures such as increasing subsidies for EV buyers. The South Korean government has been encouraging the usage of EVs through subsidies and tax rebates with the goal of having 430,000 EVs on the road by the end of 2022 and has invested in a program to improve charging infrastructure in the country. This has led to the high demand for EV testing equipment in the Asia Pacific region. The EV test equipment market in the region is led by various US, German, and Chinese companies which provide testing equipment and services to electric vehicle manufacturers. These factors are expected to drive the market in the Asia Pacific region.

Recent Developments

• In April 2022, Horiba launched the FTX-ONE-CL and FTX-ONE-RS which are two new products in the FTX-ONE exhaust gas analyzer
• In January 2022, FEV Group introduced FEV's Hybrid-BEV platform, that has a particularly compact integration of the energy conversion system including a generator and e-drive in the front of the vehicle.
• In October 2020, HORIBA introduced the all-new automatic driving system, ADS EVO, which works as a driving robot for testing vehicles.
• In October 2020, FEV Group launched a fully integrated turnkey solution for testing the latest generation high-voltage batteries.
• In July 2020, Chroma ATE launched a new Battery Pack Integrated Testbed, Chroma 8610, designed for the development and application of battery pack/modules and related parts. It integrates DC power supply, digital meter, battery charger/discharge system, and Hi-Pot equipment. The open architecture of 8610 provides a flexible and powerful UI (user interface).
• In July 2020, Arbin launched new 3-Electrode battery testing solution.
• In July 2020, T-Systems and KUKA partnered to develop digitized solutions for manufacturing industries.
• In 2021, Teledyne Technologies acquired FLIR Systems, a provider of thermal imaging and sensing solutions. Through this transaction, two businesses with complementary technologies and knowledge of the EV and automotive test markets were combined.

Some of the prominent players in the Electric Vehicle (EV) Test Equipment Market include:

• TUV Rheinland (Germany)
• AVL (Austria)
• Chroma ATE ( Taiwan)
• Horiba (Japan)
• KukaAG (Key Innovator)
• Froude, Inc
• Dewesoft
• Burke Portar Group
• Atestep Gruh
• Durr Group (Germany)
• Arbin instruments
• Blum- Novotet Gmbh
• FEV group GMBH
• Dynomerk Controls
• Comemso electronics Gmbh

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Electric Vehicle (EV) Test Equipment market.

By Type

• Hybrid electric vehicles
• Plug-in hybrid vehicles
• Battery electric vehicles

By Vehicle

• Passenger Vehicle
• Commercial Vehicle

By Equipments

• Powertrain
• Charging
• Component
• Drivetrain test
• Axle test
• Propulsion system
• Board charger
• Inverter test
• Fuel transfer pump

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)