ev test equipment Market

The global EV test equipment market is expected to grow from US$ 35,072.54 million in 2021 to US$ 118,671.47 million by 2028; it is estimated to grow at a CAGR of 20.0% from 2021 to 2028.

The automotive industry in North America is highly developed, largely due to the consistent production of commercial vehicles. According to the 2021 report from the Organisation Internationale des Constructors d'Automobiles (OICA), the US manufactured 7,604,154 commercial vehicles in 2021 and 6,895,604 in 2020, while Canada produced 826,767 commercial vehicles in 2021 and 1,048,942 in 2020. Similarly, the report indicated that Mexico produced 2,437,411 commercial vehicles in 2021 and 2,209,121 in 2020. OICA's statistics show that the US, Canada, and Mexico are among the leading countries in the global production of commercial vehicles. This consistent production of commercial vehicles is expected to drive significant growth in the market for EV test equipment in North America.

North American governments have taken proactive measures to promote the development of the electric vehicle industry. According to a Skadden article from September 2021, the US Department of Energy (DOE) has been consistently providing funding for the development of electric vehicles and related energy infrastructure. The DOE has financed various projects for EV infrastructure and innovative energy-related technologies, including the Advanced Technology Vehicles Manufacturing (ATVM) loan program, which has US$17.7 billion in direct loan authority, the Title 17 Innovative Energy (Section 1703) Loan-Guarantee Program, which has US$24 billion in loan guarantee authority, and a US$2 billion partial loan under the Tribal Energy program. Therefore, the government's continued focus on the electric vehicle industry is expected to create numerous opportunities for the EV test equipment market.

Arbin introduced a new 3-electrode battery testing solution in September 2020, which features a patented three-electrode (3E) coin cell design developed in partnership with General Motors. This new solution offers an affordable and easy-to-use three-electrode cell holder that enables long-term cycling and provides consistent results between samples, thereby accelerating battery material research for EV applications. This launch of new battery testing equipment is expected to drive growth in the EV test equipment market. Additionally, California witnessed a significant increase in light-duty electric-vehicle registrations, reaching 425,300 in 2020, which accounted for around 42% of EV registrations in the US, according to the US Department of Energy's Alternative Fuels Data Center report. The rate of registrations in California is over seven times that of Florida, the state with the second-highest number of EVs registered. As EV sales continue to grow, the demand for EV test equipment is also expected to increase in the market.

Furthermore, the Mexico City Government has implemented a strategic plan to replace local transportation with zero-emission vehicles and increase electricity generation through clean energies from 25% to 35% by 2024. Mexican customers are eligible for government incentives such as exemption from local taxes and emission control verifications, and the increasing prices of gasoline and pollution alerts that prohibit vehicle transit have boosted sales of EVs and hybrid vehicles in Mexico. As a result, the demand for electric and hybrid vehicles has surged, leading to growth in the EV test equipment market. In 2018, Mexico reported a 68% increase in EV and hybrid vehicle sales compared to 2017, with over 17,800 units sold, according to the International Trade Administration report. Additionally, from January to September 2019, electric and hybrid vehicles registered sales of 955,393 units, as per the International Trade Administration report. Therefore, the rising trend of EVs in Mexico is expected to drive demand in the EV test equipment market.

Impact of COVID-19 Pandemic on Asia Pacific EV test equipment Market
The EV test equipment market primarily comprises battery testing, e-drive testing, power electronics test systems, dynamometers, motor testing, and charger testing systems. Most of these systems are manufactured in Asia Pacific countries, especially China. The pandemic temporarily hindered the growth of the EV test equipment market in the region. However, electric vehicle sales have been on the rise in various countries in APAC, including developed countries of South-East Asia, China, and Australia, compared to the pre-pandemic period till 2020. Governments in the region are also introducing initiatives to promote EV sales and infrastructure development, which is likely to increase the demand for EV test equipment in Asia Pacific. For example, China introduced the ZEV policies in 2020 to accelerate the deployment of electric vehicles on a large scale. Similarly, India's Ministry of Power issued "Charging Infrastructure for Electric Vehicles - Guidelines and Standards" to expedite the development and national rollout of charging infrastructure. Moreover, major players in the region are expanding their market presence through partnerships and a strong focus on product research and development. These factors are expected to propel the growth of the EV test equipment market in Asia Pacific.

The global EV test equipment market is categorized into segments based on various factors. These include vehicle type, equipment type, application, end-users, and geography. Vehicle type segments include passenger car, commercial vehicle, and low-speed electric vehicles. Equipment type segments include various test equipment such as battery test equipment, motor test equipment, and more. Application segments include EV component and drivetrain system, EV charging, and powertrain. End-users are segmented into OEMs, tier 1 suppliers, research and academics, and others. Lastly, geography segments the market into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).

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

The key companies operating in the EV test equipment market profiled in the report are 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.