Our in-depth analysis has segmented global automotive test equipment market into the following segments:
Global automotive test equipment market is projected to grow at a 5.2% CAGR over the forecast period. Factors such as increasing sale of new vehicles and rising awareness amongst the population regarding preventive maintenance of vehicles are expected to foster the growth of market in upcoming years.
In terms of regional platform, global automotive test equipment market is segment into North America, Asia Pacific, Europe, Latin America and Middle East & Africa regions. Further, Asia Pacific automotive test equipment market is likely to dominate the global automotive test equipment market by the end of forecast period. Increasing production of vehicles in Asian countries such as India and China owing to low cost production and presence of large base of automotive manufacturing plants is expected to bolster the growth of automotive test equipment market in Asia Pacific region in upcoming years. According to international organization of motor vehicle manufacturers, production of new vehicles in China grew by 14.5% in 2016 as compared to 3.3% in 2015.
Further, Europe automotive test equipment market is poised to display substantial growth over the forecast period. Growing production of vehicles in European countries, especially electric vehicles is a major factor which is likely to augment the growth of automotive test equipment market in Europe region. For instance, production of new vehicle in Finland rose by 53.3% in 2016.
Global automotive test equipment market is further segmented by passenger cars, low commercial vehicle and heavy commercial vehicles. Booming production of new vehicles and increasing number of old and end-of-life passenger vehicles are predicted to drive the growth of this segment over the forecast period.
Global automotive test equipment market is further classified on the basis of region as follows:
Global automotive test equipment market is thriving on the back of number of factors such as increasing number of vehicles and increased spending on vehicle maintenance globally. Further, changing life style of consumers is a major factor which is augmenting the sale of new vehicles across the globe.
Presence of stringent government rules to curb carbon and other non-eco-friendly emission from vehicle are expected to fuel the demand for automotive test equipment such as vehicle emission test system and smoke meter. This factor is expected to bolster the growth of global automotive text equipment market in upcoming years.
Rising consumer preferences for preventive maintenance of vehicle is also major factor which is enhancing the growth of automotive test equipment market across all regions. Further, occurrence of road accidents is augmenting the demand for car maintenance which is fostering the growth of market.
Increasing number of new automobile manufacturing plant is expected to escalate the demand for automotive test equipment during the forecast period. Additionally, rising number of end-of-life vehicles is also projected to bolster the growth of global automotive test equipment in near future.
However, presence of on-demand taxi operators and growing preference for public transport among a part of population are limiting the sales of new vehicles. This factor is projected to hamper the growth of market over the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.