According to a new report by Markets and Markets, the EV Test Equipment Market is expected to witness significant growth, with its size projected to increase from USD 79 million in 2022 to reach USD 242 million by 2027, at an impressive CAGR of 25.2%.
The surging demand for alternative fuel vehicles, particularly electric vehicles, has spurred the growth of the electric vehicle market. Governments worldwide have adopted favorable policies to curb crude oil consumption, automotive emissions, and air pollution, driving the adoption of electric vehicles. This rising demand for electric vehicles is expected to propel the market for electric vehicle testing equipment and related components.
Moreover, the automotive industry’s increasing emphasis on developing innovative battery technologies and incorporating advanced electronic functions and features in vehicles, coupled with stringent emission standards, has led to a higher demand for EV test equipment, software, and repair data. These factors together contribute to the growing importance and demand for electric vehicle testing solutions.
The EV Charging segment is expected to have significant market during the forecast period
The field of EV charging has witnessed remarkable advancements, particularly in Level 3 and Level 4 chargers capable of charging a vehicle in less than an hour, empowering it to cover more than 200 km. Among the latest developments in EV charging-related test equipment are the on-board charger and AC/DC EVSE ATS.
The on-board charger is equipped with an integrated power factor corrector, galvanic isolation, and offers a wide range of input and output voltages, along with adjustable current limits. On the other hand, the AC/DC EVSE ATS provides comprehensive testing, including measurements of current, voltage, temperature, speed, and mileage. These cutting-edge technologies are revolutionizing the electric vehicle charging landscape, offering faster and more efficient charging solutions for the growing EV market.
Germany is Leading the EV Test Equipment Market in Europe with Technological Advancements and Government Support.
Within the European region, the German EV test equipment market is projected to emerge as the largest, propelled by significant advancements in charging and battery technologies and the implementation of favorable government policies. Germany stands out for its robust research and development capabilities, leading the way in EV testing technology across Europe. The country’s EV test equipment industry has experienced substantial growth, driven by the rising sales of electric vehicles from domestic players like Volkswagen, BMW, and others.
Germany also boasts major electric vehicle charging station providers like Siemens and IONITY, contributing to the country’s leadership in the electric mobility sector. Furthermore, Germans have shown a penchant for adopting new technologies, and the government’s incentives for both EV buyers and manufacturers have played a crucial role in boosting the market size of the EV test equipment industry in Germany.
US is expected to be the largest market in North America during the forecast Period
In North America, the US leads the electric vehicle market with the largest share of electric vehicle sales. The US automotive industry places a strong emphasis on innovation, technology, and the development of safe and comfortable automobiles. As the production of electric vehicles, including BEVs, PHEVs, and HEVs, continues to rise, the demand for EV charging stations is expected to grow significantly in the country.
To encourage the widespread adoption of electric vehicles, the US government offers various incentives and rebates for both EV buyers and manufacturers of EVs and related equipment. Additionally, several US states have collaborated with EV manufacturers to accelerate commercial vehicle electrification, promote EV purchases, expand charging infrastructure across their territories, incentivize EV manufacturers to boost growth, and support technological innovations in the EV sector. This collaborative approach is driving the rapid acceptance and growth of electric vehicles in the United States.