The automotive test equipment market is projected to reach USD 4.79 billion by 2032 from USD 3.66 billion in 2025 at a CAGR of 3.9%. Rising vehicle electronics and software complexity have driven strong demand for integrated HiL and SiL testing solutions, while stricter global emission norms have accelerated the adoption of advanced fuel injection and emission testing systems.
Leading test equipment providers, including Horiba Ltd., AVL, National Instruments, Siemens AG, and ATS Korea, are addressing these trends by delivering cost-efficient, portable solutions for emerging markets, building comprehensive platforms spanning ECU, battery, and ADAS testing, and strengthening industry-academia collaborations to validate next-generation automotive technologies.
National Instruments, in July 2024, enhanced its LabVIEW-based testing software with advanced PC-based simulation for faster EV powertrain validation, and Keysight, in March 2025, integrated AI-driven analytics into its PathWave platform to improve ADAS and EV system fault detection. The high cost and rapid obsolescence of advanced test systems pose barriers, particularly for smaller suppliers having to upgrade often to align with diverse and evolving regulatory frameworks. However, these same trends create opportunities for modular, AI-driven, and cloud-enabled test equipment that supports automated diagnostics, predictive analytics, and global harmonization, which enables a faster and more cost-effective validation across OEMs and suppliers.
At the same time, tightening fuel economy and CO₂ regulations are compelling OEMs to target transmission losses below 1%, which in turn requires more advanced and frequent efficiency testing. For instance, in September 2024, AVL introduced a highly integrated multi-speed e-axle for heavy-duty trucks - delivering 400 kW continuous and 540 kW peak power with shifting capability that avoids torque loss - demonstrating the type of system that transmission dynamometers must now validate under real operating conditions. Together, these factors position transmission dynamometers as a critical enabler of innovation in EV and hybrid powertrains, making them the most dynamic growth segment within the automotive test equipment market.
Integration with thermal chambers enables simulation of extreme environmental conditions (-40°C to +80°C), while built-in safety systems guard against overvoltage, short circuits, and thermal runaway. Battery testing equipment is witnessing strong global growth, primarily driven by rapid EV adoption, stricter safety and performance regulations, and rising demand for longer-range and durable batteries. Regulatory compliance is a key driver, as equipment ensures adherence to standards like UNECE R100 and ISO 12405, certifying safety, lifecycle durability, and performance under real-world driving conditions.
These systems are critical across the value chain from R&D labs supporting chemistry innovation and drive cycle simulations, to production lines enabling end-of-line validation, and service centers performing diagnostics. Leading providers in this space include Intertek and AVL, who deliver advanced solutions for both OEMs and suppliers. Stringent global regulations and extended warranty obligations are compelling OEMs and suppliers to invest in advanced lifecycle, durability, and abuse testing systems to ensure long-term battery reliability.
The advent of next-generation chemistries, including solid-state batteries, is further accelerating demand for specialized testing equipment such as impedance spectroscopy analyzers and dendrite detection systems, which are critical for validating safety and scalability. In parallel, growing emphasis on end-of-life and second-life applications is driving adoption of automated grading and rapid diagnostic tools, enabling efficient battery repurposing and recycling. Leading providers of battery testing equipment and services include Intertek, AVL, TÜV Rheinland, Keysight, Dewesoft, HORIBA, SGS, National Instruments, Softing, Dürr Group, and Arbin Instruments. These companies offer comprehensive testing solutions such as cell/module/pack-level testing, charge/discharge cycles, and battery lifecycle simulations.
OEMs are investing in testing the hybrid and alternative fuel vehicles in the country. For instance, Volkswagen and Toyota strengthened hybrid flex-fuel programs, and Hyundai advanced ethanol-hybrid R&D at Piracicaba, positioning Brazil as a global testbed for renewable energy vehicles. In commercial transport, Scania rolled out ethanol-hybrid trucks aligned with Brazil’s low-carbon policies. Additionally, in June 2025, Marelli inaugurated an INMETRO-accredited EV lab in Hortolândia, enhancing local validation and homologation capacity. This convergence of industrial scale-up and advanced testing positioned Brazil as the fastest-growing market outside the global triad, anchoring its leadership in the evolving mobility landscape.
In Russia, the government and industry players are intensifying efforts to build a domestic automotive ecosystem, with a strong emphasis on testing and R&D. In February 2025, the Ministry of Industry and Trade, the Government of Tatarstan, and RUSNANO Group signed a trilateral agreement to establish an automotive component development center at the Idea Technopark in Kazan, focused on body and chassis components, power electronics, and traction batteries for passenger cars and trucks.
The initiative also includes a modern testing laboratory and a training hub for engineering and technical specialists, reinforcing Russia’s push for technological self-reliance. Complementing this, Atom announced in December 2024 that its upcoming EV will undergo 48 crash tests, along with aerodynamic, torsional rigidity, climatic, and corrosion durability evaluations, ahead of serial production in 2025. Together, these developments underscore Russia’s accelerated push to strengthen its domestic testing infrastructure, enhance EV readiness, and reduce reliance on imports.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
Leading test equipment providers, including Horiba Ltd., AVL, National Instruments, Siemens AG, and ATS Korea, are addressing these trends by delivering cost-efficient, portable solutions for emerging markets, building comprehensive platforms spanning ECU, battery, and ADAS testing, and strengthening industry-academia collaborations to validate next-generation automotive technologies.
National Instruments, in July 2024, enhanced its LabVIEW-based testing software with advanced PC-based simulation for faster EV powertrain validation, and Keysight, in March 2025, integrated AI-driven analytics into its PathWave platform to improve ADAS and EV system fault detection. The high cost and rapid obsolescence of advanced test systems pose barriers, particularly for smaller suppliers having to upgrade often to align with diverse and evolving regulatory frameworks. However, these same trends create opportunities for modular, AI-driven, and cloud-enabled test equipment that supports automated diagnostics, predictive analytics, and global harmonization, which enables a faster and more cost-effective validation across OEMs and suppliers.
Transmission dynamometer is the fastest-growing test equipment type during the forecast period.
With the rise of multi-speed EV gearboxes, hybrid e-axles, and advanced dual-clutch transmissions (DCTs), the demand for precise efficiency, durability, and NVH (noise, vibration, harshness) testing is increasing sharply. Unlike engine or chassis dynamometers, transmission dynamometers enable validation under higher torque densities and varying load profiles, including the ability to simulate regenerative braking loads central to EV operation. Moreover, next-generation transmissions integrate motors, power electronics, and cooling systems, creating complex electro-mechanical interactions that only transmission dynamometers can accurately replicate.At the same time, tightening fuel economy and CO₂ regulations are compelling OEMs to target transmission losses below 1%, which in turn requires more advanced and frequent efficiency testing. For instance, in September 2024, AVL introduced a highly integrated multi-speed e-axle for heavy-duty trucks - delivering 400 kW continuous and 540 kW peak power with shifting capability that avoids torque loss - demonstrating the type of system that transmission dynamometers must now validate under real operating conditions. Together, these factors position transmission dynamometers as a critical enabler of innovation in EV and hybrid powertrains, making them the most dynamic growth segment within the automotive test equipment market.
Battery test equipment is expected to be the largest segment of the market during the forecast period.
The battery test equipment segment is projected to showcase significant growth of all EV test equipment during the forecast period. These systems are designed to evaluate battery cells, modules, and packs across wide operating ranges, typically spanning 5V to 1,000V and currents up to 1,200A, with high precision levels of ±0.02% for voltage and ±0.05% for current. Advanced configurations support bi-directional power flow up to 300 kW per channel, are scalable to multi-megawatt levels, and offer multi-channel capacity that often exceeds 256 channels for simultaneous testing, thereby enhancing R&D throughput.Integration with thermal chambers enables simulation of extreme environmental conditions (-40°C to +80°C), while built-in safety systems guard against overvoltage, short circuits, and thermal runaway. Battery testing equipment is witnessing strong global growth, primarily driven by rapid EV adoption, stricter safety and performance regulations, and rising demand for longer-range and durable batteries. Regulatory compliance is a key driver, as equipment ensures adherence to standards like UNECE R100 and ISO 12405, certifying safety, lifecycle durability, and performance under real-world driving conditions.
These systems are critical across the value chain from R&D labs supporting chemistry innovation and drive cycle simulations, to production lines enabling end-of-line validation, and service centers performing diagnostics. Leading providers in this space include Intertek and AVL, who deliver advanced solutions for both OEMs and suppliers. Stringent global regulations and extended warranty obligations are compelling OEMs and suppliers to invest in advanced lifecycle, durability, and abuse testing systems to ensure long-term battery reliability.
The advent of next-generation chemistries, including solid-state batteries, is further accelerating demand for specialized testing equipment such as impedance spectroscopy analyzers and dendrite detection systems, which are critical for validating safety and scalability. In parallel, growing emphasis on end-of-life and second-life applications is driving adoption of automated grading and rapid diagnostic tools, enabling efficient battery repurposing and recycling. Leading providers of battery testing equipment and services include Intertek, AVL, TÜV Rheinland, Keysight, Dewesoft, HORIBA, SGS, National Instruments, Softing, Dürr Group, and Arbin Instruments. These companies offer comprehensive testing solutions such as cell/module/pack-level testing, charge/discharge cycles, and battery lifecycle simulations.
The Rest of the World is expected to be the second fastest-growing market during the forecast period.
The Rest of the World is the second fastest-growing region during the forecast period. Among the Rest of the World countries, Brazil has established itself as the leading mobility hub, advancing faster than its peers through a dual push of OEM assembly plant expansion and testing facility growth. BYD accelerated localization with three factories in Bahia, including EV, battery, and bus chassis plants, alongside a new Flex 1.5L plug-in engine facility at the Camacari complex in March 2025. GWM began hybrid SUV production in Iracemápolis, while Stellantis introduced Bio-Hybrid technology in Pernambuco, integrating ethanol with electrification for cost-effective solutions.OEMs are investing in testing the hybrid and alternative fuel vehicles in the country. For instance, Volkswagen and Toyota strengthened hybrid flex-fuel programs, and Hyundai advanced ethanol-hybrid R&D at Piracicaba, positioning Brazil as a global testbed for renewable energy vehicles. In commercial transport, Scania rolled out ethanol-hybrid trucks aligned with Brazil’s low-carbon policies. Additionally, in June 2025, Marelli inaugurated an INMETRO-accredited EV lab in Hortolândia, enhancing local validation and homologation capacity. This convergence of industrial scale-up and advanced testing positioned Brazil as the fastest-growing market outside the global triad, anchoring its leadership in the evolving mobility landscape.
In Russia, the government and industry players are intensifying efforts to build a domestic automotive ecosystem, with a strong emphasis on testing and R&D. In February 2025, the Ministry of Industry and Trade, the Government of Tatarstan, and RUSNANO Group signed a trilateral agreement to establish an automotive component development center at the Idea Technopark in Kazan, focused on body and chassis components, power electronics, and traction batteries for passenger cars and trucks.
The initiative also includes a modern testing laboratory and a training hub for engineering and technical specialists, reinforcing Russia’s push for technological self-reliance. Complementing this, Atom announced in December 2024 that its upcoming EV will undergo 48 crash tests, along with aerodynamic, torsional rigidity, climatic, and corrosion durability evaluations, ahead of serial production in 2025. Together, these developments underscore Russia’s accelerated push to strengthen its domestic testing infrastructure, enhance EV readiness, and reduce reliance on imports.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
- By Company Type: OEMs - 30%, Tier I & Tier II - 50%, and Others - 20%,
- By Designation: CXOs - 35%, Managers - 25%, and Executives - 40%
- By Region: North America - 30%, Europe - 20%, Asia Pacific - 50%, and Rest of the World - 15%
Research Coverage:
The market study covers the automotive test equipment market by product type (engine dynamometer, chassis dynamometer, vehicle emission test system, wheel alignment tester, Fuel injection pump tester, transmission dynamometer), application (mobile/tablet-based equipment, PC/Laptop-based equipment), equipment type (inverter test, electric propulsion test, e-axle test, battery test equipment, on-board charger ATS, motor test equipment, EV drivetrain test), end market (OEM assembly plant, R&D/Technical center, authorized service center), vehicle type (commercial vehicle, passenger car), EV type (battery electric vehicle, plug-in hybrid electric vehicle, and hybrid electric vehicle), advanced technology, and region (North America, Europe, Asia Pacific, and Rest of the World). It also covers the competitive landscape and company profiles of the major players in the automotive test equipment market.Key Benefits of Purchasing this Report
The study offers a detailed competitive analysis of the key players in the market, including their company profiles, important insights into product and business offerings, recent developments, and main market strategies. The report will assist market leaders and new entrants with estimates of revenue figures for the overall automotive test equipment market and its subsegments. It helps stakeholders understand the competitive landscape and gain additional insights to better position their businesses and develop effective go-to-market strategies. Additionally, the report provides information on key market drivers, restraints, challenges, and opportunities, helping stakeholders keep track of market dynamics.The report provides insights into the following points:
- Analysis of key drivers (Increasing demand for specialized test systems for hybrid and EV platforms, stringent regulatory standards for automotive testing, shift toward advanced automotive testing technologies), restraints (capital-intensive infrastructure for test equipment manufacturers, in-house capability preference for automotive testing), opportunities (Test-as-a-Service and cloud-integrated virtual labs, convergence toward X-in-the-Loop (XiL) technology, localized, compact test benches for Tier-2 and mid-sized suppliers), and challenges (heterogeneous validation needs across OEMs, high complexity in ADAS and ECU co-validation, lack of standardization in battery testing protocols) influencing the growth of the automotive test equipment market
- Product Development/Innovation: Detailed insights into upcoming technologies, R&D activities, and product launches in the automotive test equipment market
- Market Development: Comprehensive information about lucrative markets (the report analyzes the automotive test equipment across various regions)
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the automotive test equipment market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like AVL (Austria), Horiba, Ltd. (Japan), Robert Bosch GmbH (Germany), Phinia Inc. (US), and Illinois Tool Works Inc. (US) in the automotive test equipment market
Table of Contents
1 Introduction
3 Premium Insights
4 Market Overview
5 Industry Trends
6 Strategic Disruption Through Technology, Patents, Digital, And AI Adoptions
7 Sustainability and Regulatory Landscape
8 Customer Landscape & Buyer Behavior
9 Automotive Test Equipment Market, by Equipment
10 Automotive Test Equipment Market, by Application
11 Automotive Test Equipment Market, by Vehicle Type
12 Automotive Test Equipment Market, by Propulsion
13 Automotive Test Equipment Market, by End Market
14 Automotive Test Equipment Market, by Advanced Technology
15 Automotive Test Equipment Market, by Region
16 Competitive Landscape
17 Company Profiles
18 Recommendations
19 Appendix
List of Tables
List of Figures
Companies Mentioned
- Phinia Inc.
- Robert Bosch Gmbh
- Horiba Group
- Avl
- Illinois Tool Works Inc.
- Siemens
- Dürr Group
- Continental Ag
- Vector Informatik Gmbh
- Softing Ag
- Mustang Advanced Engineering
- Schaeffler Ag
- Maha Maschinenbau Haldenwang GmbH & Co. Kg
- Muller Automotive
- Intertek Group plc
- Tüv Süd
- Rohde & Schwarz
- Sinfonia Technology Co. Ltd.
- Ampro Testing Machines
- Ametek Cts
- Autel Intelligent Technology Corp. Ltd.
- Nsm Industrial Solutions Pvt Ltd
- Dsa Daten- Und Systemtechnik Gmbh
- Ipetronik GmbH & Co.Kg
- Huff Technologies
- Dyno One Inc.
- Drive System Design
- Anthony Best Dynamics Limited
- Saj Test Plant Pvt. Ltd.
- Maxeye Technologies
- National Instruments Corp.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 331 |
| Published | September 2025 |
| Forecast Period | 2025 - 2032 |
| Estimated Market Value ( USD | $ 3.66 billion |
| Forecasted Market Value ( USD | $ 4.79 billion |
| Compound Annual Growth Rate | 3.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 31 |
