EV TEST EQUIPMENT MARKET REPORT 2022 Increasing demand for efficient and low-emission commuting to drive market
The global EV test equipment market size is projected to reach USD 242 million by 2027, from an estimated USD 79 million in 2022, at a CAGR of 25.2 %. The market for EVs has been growing over the past few years due to the increasing demand for emission-free vehicles around the world, combined with the rising cost of fuel. Various renowned OEMs have been working on developing EVs with advanced electronic/electric components over the past few years. This is according to a report by ResearchAndMarkets.com.
Due to the rapidly developing drive train technologies, government initiatives (tax rebates & subsidies), and regulations, both passenger and commercial electric vehicles have witnessed a high demand. OEMs offer a wide range of electric vehicles, from small hatchbacks such as Leaf to high-end sedans such as the Tesla Model 3. The wide range of product offerings has attracted a high number of consumers, resulting in an increased market for electric vehicles.
These investments and policies are expected to help boost the sales of electric vehicles during the next decade. Commercial & passenger vehicles and their incorporated components require extensive testing before being introduced into the market for consumers.
EV testing is important and required during the development, validation, production, and postproduction stages of electric vehicles. Some of the essential tests are electric motor testing, battery testing, inverter testing, engine testing, transmission testing, and axle testing. The tests vary depending upon various parameters and vehicle specifications.
The demand for passenger electric vehicles is significantly higher than for commercial vehicles, leading to a higher demand for testing equipment in passenger EVs. Due to this high demand, many companies provide passenger EV or hybrid passenger EV testing services at a viable cost.
China is expected to be the largest market in Asia Pacific region
The Asia Pacific EV test equipment market is projected to grow at a high rate. China leads the market due to aggressive government policies to increase EV acceptance and the growing number of EVs, EV testing-related companies, and EV testing service providers in the country. The EV test equipment market in China is growing at a high rate due to incentives offered by the government through subsidies for EV usage. China is focusing on increasing electric vehicles to combat the rising emissions in the country.
The Chinese government is providing significant subsidies for the electrification of vehicles, which, in turn, has increased the sales of electric vehicle charging stations in the country. The subsidies offered are for pure and hybrid electric vehicles and supply equipment. Over the years, the cost of the battery pack has reduced, which has led to the market's growth in China. The government is also providing subsidies to companies for building charging facilities.
EV Drivetrain Test segment is expected to witness significant growth in equipment segment during the forecast period
The drivetrain system in electric vehicles consists of the main inverter, a battery management system, an on-board charger, an auxiliary inverter, and an HC-LC DC-DC converter. Electric vehicle drivetrain testing equipment is used for testing transmission by using simulation for electric vehicles in various environments.
Asia Pacific is projected to be the largest market for the powertrain segment during the forecast period
The powertrain segment includes engine dynamometers, chassis dynamometers, transmission dynamometers, and fuel injection pump testers. These test systems are used for HEVs and EVs depending upon the specifications and applications. Asia Pacific is projected to be the largest market for the powertrain segment during the forecast period due to the increasing demand for advanced powertrain technologies in HEVs in the region.