"Market Intelligence for High-Geared Performance"
The global EV test equipment market size was USD 33.78 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative demand shock across all regions amid the pandemic. As a result, the market is projected to grow from USD 38.51 million in 2021 to USD 150.13 million in 2028 at a CAGR of 21.46% during the 2021-2028 period. The sudden fall in CAGR is attributable to the lockdowns induced in countries due to the pandemic.
The test equipment is used in electric vehicles to test the interior system and components, including EV battery & charger testing, power electronics testing, motor & dynamometers, to check the overall vehicle performance. For instance, motor testing equipment is used to check torque or electric signal, high speed of the electric vehicle through sensors, voltages probes, and other software.
The automotive & electronic industry is evolving drastically over the past few years. The development & demand for safety features and advanced applications in vehicles, including navigation systems, infotainment, adaptive cruise control systems, and electronic ignition systems, need higher power, high-energy power conversion systems, and advanced powertrain systems. Further, such driving innovation has led to the production of advanced EV test equipment that includes programmable power sources & electronic loads with a higher power and faster response.
The rising demand for alternative fuel vehicles and connected mobility has fueled the sales of electric cars. Governments worldwide have implemented policies that promote electric vehicles to reduce automotive emissions and air pollution. The increasing demand for electric vehicles is expected to propel the growth of the market.
Higher voltages permit faster charging, which eventually led to the adoption of high-performing batteries, drivetrains, and quicker chargers. Hence, technological developments in innovative battery technologies, high demand for electronic functions and features in a vehicle, and stringent emission standards drive the EV test equipment and software demand.
Increasing Demand for Electric Vehicles amid COVID-19 Pandemic to Propel Growth
According to the data by EV Volumes.com, 2020 was a successful year for PHEVs as the global sales of BEV and PHEV combined reached a record 3.2 million units. Despite the COVID-19 pandemic, Europe registered 1.4 million EV’s in 2020, which was 137% more than 2019. This surge was surprisingly enormous for a market that was down by 20% year on year. Moreover, for the first time since 2015, Europe has outpaced China in the EV market. Despite steady growth during this pandemic, the recent announcements of the arrival of the COVID-19 vaccines in early 2021 will favor the overall EV industry. Moreover, many companies are now resuming public transportation services, thereby implementing various safety procedures & norms. Thus, it will help to achieve the anticipated sale in the coming years.
Request a Free sample to learn more about this report.
Technological Advancements in Electrical Vehicle to Set a Positive Trend for Market Growth
Automobile manufacturers are increasingly investing in designing and developing electric vehicles, leading to significant mobility and freight transportation industry changes. Therefore, the market will increase proportionally with the growth in the electric vehicles market. Also, technological advancements such as connected and autonomous vehicles require highly calibrated and advanced systems. The development of these systems provides a scope of action in the test equipment, which paves the way for the global electric vehicle test equipment market growth.
Increasing Consumer Spending on EV to Propel Market Growth
As per the International Energy Association (IEA), globally, consumers spent around USD 12,000 million on electric car purchases in 2020, a 50% increase from 2019. The rise in sales reflects that Europe accounted for a larger share of new electric car registrations, despite having higher prices than in Asia. This can be attributed to the increasing spending capacity of the urban population and the growing awareness of environmental pollution caused by IC Engine-powered vehicles. Owing to environmental concerns, consumers and automobile manufacturers have shifted focus to develop and deploy EVs. In addition, the increasing sale of EVs is helping to accelerate the demand for EV Test equipment. Hence this is a significant factor contributing to the growth of this market.
Increasing Government Spending and Initiatives on Electric Vehicles to Boost Growth
The International Energy Association (IEA) states that in 2020, governments worldwide spent USD 14,000 million on direct purchase incentives and tax deductions for electric cars. In addition, many countries responded to the downturn of the economy induced due to the COVID-19 pandemic with incentive schemes and tax cuts that helped boost their electric car sales. For instance, in India, GST (goods and services tax) on these vehicles and chargers was reduced to 5% from 12% and 18%, respectively. In addition, the government also removed import taxes on some auto components to help boost the electric vehicles market in India. Such initiatives are expected to drive the growth of the electric vehicle test equipment market.
Growing Demand for Autonomous and Connected Vehicles to Propel Growth
Developed economies are now focusing on environmentally friendly commutes giving rise to electric vehicles, connected cars, and autonomous vehicles. These vehicles need advanced technical support and maintenance for smooth functioning. EV charging station companies are building charging stations equipped with advanced technologies such as intelligent charging systems, wireless power transfer, and turbocharging. It will take an advanced testing system to calibrate these developments in the charging system. Hence, this will act as a catalyst in the growth of the market.
High Cost Associated with EV Test Equipment May Hamper Growth
The high cost of advanced EV test devices and lack of standard protocol for their development are critical factors affecting the growth of the market. As the market is a niche, there is a lack of a standard set of regulations for the manufacturing and development of EV Test equipment. Also, the number of manufacturers and tool developers is less, making it costlier, affecting its growth. The cost associated with the testing equipment will remain high until the increasing presence of vendors and equipment developers will make the market competitive. Hence, the rising complexity in the application and individual testing equipment cost associated may hamper the growth of the market.
To know how our report can help streamline your business, Speak to Analyst
BEV Segment is Expected to Dominate
The market is segmented into BEV (Battery Electric Vehicle) and PHEV (Plug-in Electric Vehicle) based on propulsion type.
The BEV segment holds the largest share globally and is expected to retain its leading position in the market during the forecast period. BEVs are preferred over PHEVs due to the increasing focus on the development of charging infrastructure and government support, mainly for BEV typed vehicles. BEV also has a high travel range coupled with a high withstand energy storage capacity. This drives consumer's preference towards the purchase of BEV over PHEV. Hence BEV dominates the market by propulsion type analysis.
Plug-in-hybrid vehicles (PHEVs) can be defined as an intermediate between IC engine vehicles and fully electric vehicles. PHEVs have an electric motor to support the internal combustion engine, which uses energy stored in batteries. However, PHEVs have an IC engine, due to which the storage space for battery space is less than BEV, and smaller battery packs are installed. Smaller battery packs provide support only for a shorter range and also low speed as compared to BEV.
Passenger Car Segment to Hold Largest Market Share
Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles.
The passenger car segment accounts for the largest share in the global market. The dominance can be attributed to various factors, including the increasing urban population and their commuting needs. Furthermore, electric cars are preferred over IC engine-powered vehicles due to their low operating costs, making them the preferred choice for the end-users. In addition, the growing concern over the increasing environmental pollution due to the propulsion of IC engine vehicles in developed countries of Europe and North America is expected to drive the demand for electric passenger cars.
The commercial vehicle segment is broadening in terms of sales and product range. Moreover, in countries such as China and the US, commercial EVs are now becoming a part of the transport industry. They are expected to replace conventional trucks during the forecast period. Commercial vehicles are significantly contributing to the growth of the market. The use of lightweight material to reduce loading capacity is the primary focus of many EV manufacturers. Therefore, the commercial vehicle segment is expected to grow substantially over the forecast period.
EV Component & Drivetrain Segment to Dominate
The market for electric vehicle test equipment is classified into EV Component and Drivetrain system, EV Charging, and Powertrain based on application.
In an EV or conventional vehicle, components such as air-conditioning compressors and power steering systems are electrically powered from a low-voltage DC bus. To test the DC/DC converters, a high-voltage DC source is required. Hence, the increasing adoption of EVs due to their emission-free operation and regulatory standards will surge the demand for the EV component & drivetrain test equipment market. However, test equipment under the EV charging segment is expected to lead in the future due to the continuous developments in battery technologies and the development of charging infrastructure across the globe.
Asia Pacific EV Test Equipment Market Size, 2020 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific stood at USD 13.29 million in 2020 and is expected to emerge as the fastest-growing region in the forthcoming years. It is anticipated that this region will showcase the highest CAGR during the forecast period. A significant factor contributing to the growth of this region is its high population in countries such as China, India which account for more than 38% of the global population. In addition, various favorable government initiatives implemented for the revival of the automobile industry, which faced the heat of COVID-19, in these regions are projected to drive market growth. Furthermore, rapid-paced urbanization and the development of smart cities will propel the growth of EV, which will accelerate the development of this market.
Europe holds the second-largest position in the market, of which Germany ranks first in this regional market owing to the presence of major auto manufacturers. Furthermore, strict regulations on road safety by the government and increasing support for electrification in the automotive industry will enhance the market growth.
North America is anticipated to be the third-largest position in the market due to the increasing demand for EVs. Also, the rising popularity of connected EVs is likely to boost the region's development during the forecast period. The high growth of the market is also attributed to technologically developed infrastructure and the presence of technological giants.
Rest of the World consists of Latin America, the Middle Eastern, and the African region, which are expected to showcase steady growth during the forecast period.
The Middle Eastern region is expected to contribute more than Latin America and Africa. This can be attributed to the early adoption and the government’s initiatives to encourage the development of advanced EV test equipment. For instance, at the forefront of the UAE’s clean transportation, as part of the Dubai Green Mobility Initiative, Dubai has successfully motivated its residents and businesses to use electric and hybrid vehicles. Furthermore, to support the Dubai Clean Energy Strategy 2050, the Dubai Supreme Council of Energy mandated that 10 percent of all cars be green by 2030. All these factors eventually contribute to the growth of the market.
Increasing Market Expertise of TUV Rheinland to Brighten its Market Prospects
TUV Rheinland is one of the world’s leading testing service providers for EV testing and solutions. The company has pioneered in providing professional consulting and tailored solutions in testing and solutions. TÜV Rheinland’s highly qualified experts test technical systems and products worldwide and certify management systems according to international standards.
Since 2006, TÜV Rheinland has been a United Nations Global Compact member to promote sustainability and combat corruption. As a result, in April 2021, the German Federal Motor Transport Authority designated TÜV Rheinland as a technical service for vehicle cybersecurity according to UN-R 155. With the designation of TÜV Rheinland, OEMs can now apply for certifications and approvals related to cybersecurity of electric connected and autonomous vehicles based on these UN regulations.
An Infographic Representation of Electric Vehicle (EV) Test Equipment Market
To get information on various segments, share your queries with us
The electric vehicle (EV) test equipment market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.
Value (USD Million)
By Propulsion type
By Vehicle Type
Fortune Business Insights says that the global market size was USD 33.78 million in 2020 and is projected to reach USD 150.13 million by 2028.
In 2020, Asia-Pacific stood at USD 13.29 million.
The market is projected to grow at a CAGR of 21.46% and exhibit steady growth during the forecast period (2021-2028).
The passenger car segment is expected to be the leading segment in this market during the forecast period.
Increasing urbanization has led to high consumer spending capacity. The growing environmental concerns regarding pollution caused by IC Engine vehicles, stringent emission standards, and rising vehicles sales are the factors leading to significant growth of the market during the forecast period.
TUV Rheinland is the leading player in the global market.
Asia Pacific dominated the market share in 2020.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry