According to our latest study on "Battery Testing Equipment Market Forecast to 2028 - COVID-19 Impact and Global Market Analysis - by Product Type, Application, and End User," the market is projected to reach US$ 682.98 million by 2028 from US$ 494.33 million in 2021; it is expected to grow at a CAGR of 4.7% during 2021-2028.
Growing Demand for Transportation is Bolstering Battery Testing Equipment Market Size
The battery testing equipment market plays an important role in ensuring the safety of batteries by testing discharged batteries and assessing various types of batteries manufactured. As more and more batteries are being incorporated into vehicles, the increasing demand for automobiles is a major factor driving the growth of the battery testing equipment market.
With the rise in disposable income in developing economies like China, India, and South Korea, there has been a surge in the demand for vehicles. According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales in India increased by 26.45% from September 2019 to September 2020. This, coupled with increasing investments by prominent vehicle manufacturing companies and favourable government norms regarding vehicle manufacturing, is expected to drive the growth of the battery testing equipment market in the Asia Pacific region in the coming years. In addition, governments of various countries are taking initiatives to expand their automotive manufacturing capacities, which is driving the growth of the battery testing equipment market. For example, in 2020, the government of Vietnam signed the European Union Vietnam Free Trade Agreement (EVFTA), which reduced the duties on Vietnam exports, including automobiles and automobile components, by 71%. Such agreements, combined with low production costs, can attract car and parts producers to Vietnam. Moreover, the continuous developments in electric vehicles and green vehicles are expected to further drive the global battery testing equipment market growth in the coming years.
In 2020, North America held a market share of over 26% in the battery testing equipment market, followed by Europe and APAC. The North American region has a reputation for early adoption of new technologies, and the wide presence of companies offering battery testing equipment is a key factor contributing to the market's growth in this region. Arbin Instruments, Chroma Systems Solutions, Inc., Extech Instruments, Midtronics, Inc., and STORAGE Battery Systems, LLC are among the players operating in the battery testing equipment market.
The impact of COVID-19 on North America has been significant, with the US being the most affected country. Manufacturing facilities had to either temporarily close or operate with reduced staff, while travel restrictions and aerospace shutdowns disrupted supply chains, leading to limited availability of raw materials. These challenges had a negative impact on the performance of North American manufacturers, which in turn limited the growth of the battery testing equipment market in the region. Despite these challenges, the increasing military expenditure of the US and the growing development of electric vehicles, particularly by companies like Tesla, are expected to provide growth opportunities to the market in the country soon. In 2021, Keysight Technologies, Inc. announced the launch of the Scienlab SL1700A Series, which is the next-generation battery pack test system designed for high-voltage battery packs for automotive and industrial applications. Additionally, Chroma Systems Solutions, Inc. launched a fast-charging testing system for e-scooters in 2021 to support the CHAdeMO Association in checking electric vehicle charging interface stimulators. The company also plans to help define the Protocol Check Sheet for fast-charging test standards for two-wheeled EVs, in line with the international growth of the EV industry.
The battery testing equipment market, based on end-users, is categorized into automotive, electronics & semiconductor, telecom, healthcare, energy & utility, and others. From the battery testing equipment market share perspective, the electronics & semiconductor segment accounted for the largest market share in 2020.
Key Findings of Study: Battery Testing Equipment Market Size
The battery testing equipment market is segmented into five major regions-North America, Europe, APAC, MEA, and SAM. North America dominated the battery testing equipment market in 2020 and is expected to continue its dominance throughout the forecast period. Europe held the second-largest share of the battery testing equipment market, followed by APAC, the MEA, and SAM, respectively.
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