Global Automotive Emission Test Equipment Market Size, Share & Industry Trends Analysis Report By Solution, By Emission Test Equipment Type, By Regional Outlook, Strategy, Challenges and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Automotive Emission Test Equipment Market
Market Report Description
The Global Automotive Emission Test Equipment Market size is expected to reach $854.1 million by 2027, rising at a market growth of 4.7% CAGR during the forecast period.
Automobiles are major sources of air pollution, which has a variety of health and environmental consequences. High levels of pollutants and haze are noticed in bigger cities, mainly in places where air flow was restricted. Numerous automakers collaborated with the federal government to investigate the causes and effects of vehicle emissions. They discovered that automotive emissions are mostly caused by three sources; Exhaust emissions (HC, CO and NOx), Crankcase vapours (HC), and Fuel evaporation (HC).
Governments all over the world have established legislation aimed at lowering dangerous automobile emissions. In addition, countries such as the United States, Canada, Germany, the United Kingdom, France, Italy, Spain, China, and Japan have strong rules, regulations, and standards for frequent technical inspections and maintenance to monitor car emissions.
Because of the increased need to reduce carbon and nitrogen oxide emissions, automobile emission test equipment is in great demand. Furthermore, governments in both developing and developed countries are taking steps to decrease carbon emissions from autos, which is boosting demand for automotive emission testing equipment.
Automotive emission test equipment is used to test and measure specific matter in vehicle exhaust systems, assisting in the reduction of automobile emissions. The automotive emission test equipment market is expected to grow rapidly over the projected period as a consequence of all of these factors.
COVID-19 Impact Analysis
The outbreak of the COVID-19 has had a negative impact on the automobile sector. The initial lockdown in China has hampered the export of car components, which had disastrous effects for overall automotive industry. The whole scenario resulted in supply chain disruptions and a decrease in worldwide demand for automobiles. Due to the uncertainties in the economy, both businesses and consumers are deferring new automotive purchases.
Similarly, the COVID-19 pandemic has had an effect on overall revenue from automobile testing, inspection, and certification (TIC) services. After years of expansion, the market's leading participants are under significant pressure. R&D/Exploration, production, new product testing, and regulatory approval are among the activities that have had the greatest impact.
Market Growth Factors:
Growing number of strict regulations to prevent environmental impact
The ongoing trend to design and implement test equipment to detect emission levels in line with the legislation would surge the usage of automotive emission test equipment. Every vehicle must adhere to certain emission requirements framed by the government authorities. The vehicle emission test system is used to determine whether the vehicle meets industry standards.
Rising production of automobiles across the world
There is a rise in the demand as well as the production of automotive vehicles. Due to this increase in the number of vehicles across different developing nations, the production of automotive catalysts for emission control devices in automobiles has also increased. In addition, several emerging nations are witnessing a constant increase in the number of vehicles since customers are considering automobiles as one of the integral parts of their lives.
Marketing Restraining Factor:
Difficulties faced in striking a balance between high cost & performance of test equipment
The automotive sector faces more difficulties in maintaining a balance between technological advancement and cost-cutting measures for price reduction. Advanced test equipment, which are used for electric or hybrid vehicle testing, is more expensive than standard test equipment. It takes time for a technology to become widespread enough for its manufacturers to benefit from economies of scale. Entry-level passenger automobiles are in high demand in emerging markets, and automakers must meet this need at reasonable costs.
Based on solution, the automotive emission test equipment market is divided into Emission Test Equipment, Emission Test Software and Emission Test Services. The emission test equipment segment acquired the largest revenue share in the automotive emission test equipment market in 2020. It is owing to the rising adoption of conventional devices to test emission from automobiles. Such types of equipment are easy to use and provide accurate results and hence, they are utilized highly by companies as well as authorities.
|Market size value in 2020||USD 637.2 Million|
|Market size forecast in 2027||USD 854.1 Million|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 4.7% from 2021 to 2027|
|Number of Pages||177|
|Number of Tables||254|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Solution, Emission Test Equipment Type, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region-wise, the automotive emission test equipment market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2020, Europe emerged as the leading region in the automotive emission test equipment market with maximum revenue share. Countries in the region, such as the United Kingdom, Germany, and the Netherlands, are leading the way in adopting European Union-mandated automobile emission testing criteria and rigorous rules and regulations.
Free Valuable Insights: Global Automotive Emission Test Equipment Market size to reach USD 854.1 Million by 2027
KBV Cardinal Matrix - Automotive Emission Test Equipment Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; ABB Group, Honeywell International, Inc. and Siemens AG are the forerunners in the Automotive Emission Test Equipment Market. Companies such as BorgWarner, Inc., SGS S.A. and Horiba Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Softing AG, Continental AG, Robert Bosch GmbH, Siemens AG, Honeywell International, Inc., ABB Group, BorgWarner, Inc., SGS S.A., Horiba Ltd., and Vector Informatik GmbH.
Recent Strategies Deployed in Automotive Emission Test Equipment Market
» Partnerships, Collaborations and Agreements:
- Dec-2021: ABB joined hands with Amazon Web Services (AWS). This collaboration aimed to boost the adoption of new and sustainable technologies in mining, which would show effectiveness, reliability, and scalability as mining operators shift towards all-electric and net-zero emissions.
- Nov-2021: Honeywell signed an agreement with ZoneFlow Reactor Technologies, a technology developer. Together, the companies would commercialize ZoneFlow Reactor Technology. This technology would offer a step-change enhancement in the efficiency and carbon intensity of steam methane reforming for the production of hydrogen.
- Sep-2021: ABB came into a Memorandum of Understanding (MoU) with MEDATech, a fast-growing ERP software development and integration company. This MoU aimed to jointly explore solutions to decarbonize mining operations via charging solutions and maximize electric drive systems in battery electric vehicles (BEVs) for heavy-duty applications.
- Jul-2021: Siemens Mobility joined hands with Continental Engineering Services (CES). Together, the companies would develop and produce current collectors for trucks called pantographs. This collaboration aimed to electrify major sections of the highway network with an overhead line system, and hence, substantially decrease CO2 emissions from trucks, in line with EU regulation 2019/1242.
- Apr-2021: ABB entered into a partnership with AFC Energy, a developer of alkaline fuel cells which use hydrogen for electricity production. This partnership aimed to test, design, and combine AFC Energy’s alkaline fuel cell technology into ABB’s data center system portfolio.
- Apr-2021: HORIBA came into a contract with the Environmental Protection Agency (EPA). Under this contract, the company would offer the Environmental Protection Agency (EPA) emissions measurement systems for their heavy-duty engine test cells at the National Vehicle and Fuel Emissions Laboratory (NVFEL) in Ann Arbor, Michigan. The software offered by the company would deliver different functions to boost the operational efficiency of automated 1,065 checks and tests, service troubleshooting, along enhancing the quality of data via health monitoring and reporting.
- Mar-2021: Siemens came into a partnership with Digital Charging Solutions, a developer of public charging white label solutions. This partnership aimed to make a charging service named Enterprise Charging Network that would provide integrated billing for fleet drivers and managers. The Enterprise Charging Network service is one of the outcomes of the cooperation between Siemens & Digital Charging Solutions, which focused on making electromobility as available and usable for fleet customers as possible, hence encouraging its adoption and expansion.
- Sep-2020: HORIBA signed an agreement with CRMT, an engineering private company. Through this agreement, the companies would pioneer the first-ever Center of Expertise in Hydrogen in France, enabling customers to access state-of-the-art hydrogen solutions at every step of the process, meeting all their requirements and challenges across the overall hydrogen value chain, from generation to storage and utilization.
» Product Launches and Product Expansions:
- Sep-2021: HORIBA unveiled STARS VETS, its vehicle emission test automation software for Windows 10 64 bit Operating System. This product is a part of HORIBA’s STARS Automation platform that allows better test cell efficiency and usability, in turn improving their customers’ productivity.
- Jul-2021: SGS released its new mobile units for delivering in-situ Electromagnetic Compatibility (EMC) and Electromagnetic Interference (EMI) testing services to sites across the US. This equipment would expand the company's capabilities of its Electrical & Electronics (EE) regulatory compliance testing services to include the new needs for semiconductor manufacturing plants.
- Nov-2020: Delphi Technologies, subsidiary of BorgWarner introduced its new product line expansions and aftermarket innovations in fuel handling and power electronics. The latest products consist of the improved fuel pump and power electronics components, plus better coverage across all product lines.
- Oct-2020: HORIBA launched the automatic driving system, ADS EVO. This system helps in enhancing the efficiency of vehicle testing by decreasing the number of repeat tests, laboratory operating costs, total test time, and the number of human errors.
» Acquisitions and Mergers:
- Jul-2021: HORIBA Europe took over BeXema, an innovative startup. This acquisition aimed to include the technologies of the electric power field into the group’s internal supply chain. In addition, this acquisition would enable HORIBA to fulfill the requirement for highly complicated development and test solutions driven by the expanding energy industries, delivering total solutions to overcome the challenges of customers more rapidly.
- Oct-2020: Honeywell acquired Ballard Unmanned Systems, a developer and supplier of hydrogen fuel cell power systems. This acquisition aimed to strengthen Honeywell into the hydrogen fuel cells market for unmanned aerial systems (UAS), along with wider aviation applications.
Scope of the Study
Market Segments Covered in the Report:
- Emission Test Equipment
- Emission Test Software and
- Emission Test Services
By Emission Test Equipment Type
- Opacity Meters/Smoke Meters
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Softing AG
- Continental AG
- Robert Bosch GmbH
- Siemens AG
- Honeywell International, Inc.
- ABB Group
- BorgWarner, Inc.
- SGS S.A.
- Horiba Ltd.
- Vector Informatik GmbH
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What would be the size of the automotive emission test equipment market by 2027?
The automotive emission test equipment market size is projected to reach USD 854.1 million by 2027.
What are the key driving factors and challenges in the automotive emission test equipment market?
Rising production of automobiles across the world of the companies are driving the market in coming years, however, Difficulties faced in striking a balance between high cost & performance of test equipment have limited the growth of the market.
Who are the leading players in the automotive emission test equipment market?
Softing AG, Continental AG, Robert Bosch GmbH, Siemens AG, Honeywell International, Inc., ABB Group, BorgWarner, Inc., SGS S.A., Horiba Ltd., and Vector Informatik GmbH.
Which segment shows a high revenue share of the automotive emission test equipment market in 2020?
The emission test equipment segment acquired the largest revenue share in the automotive emission test equipment market in 2020.
Which segment shows the high growth rate of the automotive emission test equipment market over the forecast period?
The Emission Test Software market shows high growth rate in the market of 5.1% during (2021 - 2027).
.Which region is fastest growing region in the market?
The Europe market is the fastest growing region in the Global Automotive Emission Test Equipment Market by Region 2020, and would continue to be a dominant market till 2027.