EV Test Equipment Market Research Report and Outlook by 2028

The global market for electric vehicle (EV) test equipment is projected to expand significantly, increasing from approximately US$ 35,072.54 million in 2021 to an estimated US$ 118,671.47 million by 2028, reflecting a compound annual growth rate (CAGR) of 20.0% during this period.

The automotive sector in North America is notably advanced, primarily due to the steady output of commercial vehicles. As per the 2021 report from the Organisation Internationale des Constructeurs d'Automobiles (OICA), the United States produced 7,604,154 commercial vehicles in 2021, a rise from 6,895,604 in 2020. Canada also contributed with 826,767 commercial vehicles in 2021, down from 1,048,942 in the previous year. Mexico's production figures were 2,437,411 in 2021, compared to 2,209,121 in 2020. These statistics position the US, Canada, and Mexico among the top producers of commercial vehicles globally, which is anticipated to significantly boost the demand for EV test equipment in North America.

Governments in North America have actively supported the growth of the electric vehicle sector. A September 2021 article from Skadden highlighted that the US Department of Energy (DOE) has been consistently allocating funds for the advancement of electric vehicles and their associated energy infrastructure. The DOE has backed numerous projects aimed at enhancing EV infrastructure and innovative energy technologies, including the Advanced Technology Vehicles Manufacturing (ATVM) loan program, which has a direct loan authority of US$17.7 billion, and the Title 17 Innovative Energy (Section 1703) Loan-Guarantee Program, with US$24 billion in loan guarantee authority. Additionally, a US$2 billion partial loan is available under the Tribal Energy program. This ongoing governmental commitment to the electric vehicle sector is expected to generate numerous opportunities for the EV test equipment market.

In September 2020, Arbin launched a new battery testing solution featuring a patented three-electrode (3E) coin cell design, developed in collaboration with General Motors. This innovative solution provides an economical and user-friendly three-electrode cell holder that facilitates long-term cycling and ensures consistent results across samples, thereby expediting battery material research for electric vehicle applications. The introduction of this new battery testing technology is likely to stimulate growth in the EV test equipment sector. Furthermore, California experienced a remarkable surge in light-duty electric vehicle registrations, reaching 425,300 in 2020, which represented about 42% of all EV registrations in the United States, according to the US Department of Energy's Alternative Fuels Data Center report. The registration rate in California is more than seven times that of Florida, the state with the second-highest EV registrations. As electric vehicle sales continue to rise, the demand for EV test equipment is expected to follow suit.

Moreover, the government of Mexico City has initiated a strategic plan aimed at transitioning local transportation to zero-emission vehicles and increasing the share of clean energy in electricity generation from 25% to 35% by 2024. Mexican consumers can benefit from government incentives, such as exemptions from local taxes and emission control verifications. The rising gasoline prices and pollution alerts that restrict vehicle movement have further propelled the sales of electric and hybrid vehicles in Mexico. Consequently, the demand for these vehicles has surged, contributing to the growth of the EV test equipment market. In 2018, Mexico recorded a 68% increase in sales of electric and hybrid vehicles compared to 2017, with over 17,800 units sold, as reported by the International Trade Administration. Additionally, from January to September 2019, sales of electric and hybrid vehicles reached 955,393 units, according to the same report. Thus, the increasing popularity of electric vehicles in Mexico is anticipated to drive demand in the EV test equipment market.

Effects of the COVID-19 Pandemic on the Asia Pacific EV Test Equipment Market
The EV test equipment market encompasses various systems, including battery testing, e-drive testing, power electronics test systems, dynamometers, motor testing, and charger testing systems. A significant portion of these systems is produced in Asia Pacific countries, particularly China. The pandemic temporarily disrupted the growth of the EV test equipment market in this region. However, electric vehicle sales have been on an upward trajectory in several Asia Pacific nations, including developed countries in Southeast Asia, China, and Australia, compared to the pre-pandemic period leading up to 2020. Governments in the region are also implementing initiatives to foster EV sales and infrastructure development, which is likely to enhance the demand for EV test equipment in Asia Pacific. For instance, China introduced Zero Emission Vehicle (ZEV) policies in 2020 to accelerate the widespread adoption of electric vehicles. Similarly, India's Ministry of Power released guidelines for "Charging Infrastructure for Electric Vehicles" to hasten the development and national rollout of charging infrastructure. Furthermore, key players in the region are expanding their market presence through partnerships and a strong emphasis on product research and development. These factors are expected to drive the growth of the EV test equipment market in Asia Pacific.

The global EV test equipment market is segmented based on various criteria, including vehicle type, equipment type, application, end-users, and geography. Vehicle type segments comprise passenger cars, commercial vehicles, and low-speed electric vehicles. Equipment type segments include various testing apparatus such as battery test equipment and motor test equipment. Application segments cover EV components and drivetrain systems, EV charging, and powertrains. End-users are categorized into OEMs, tier 1 suppliers, research institutions, and others. Finally, the geographical segmentation includes North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

The analysis of the global EV test equipment market was conducted using both primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to collect qualitative and quantitative data related to the market. The objective was to achieve a comprehensive overview and forecast of the market across all segments. Additionally, primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the EV test equipment market. This approach aimed to validate data and gather further analytical insights into the market.

The report profiles key companies operating in the EV test equipment market, including National Instruments Corporation, Horiba Ltd, Arbin Instruments, Maccor Inc, KEYSIGHT TECHNOLOGIES, INC, Froude, Inc, Dynomerk Controls, Comemso electronics GmbH, Durr Group, T?V RHEINLAND, INTERTEK GROUP PLC, TOYO SYSTEM CO., LTD, and WONIK PNE CO., LTD.