Need for cost-efficient testing to increase profit margins and boost growth opportunities for semiconductor test equipment, finds Frost & Sullivan
SANTA CLARA, California, March 11, 2020 /PRNewswire/ -- A confluence of macroeconomic and end-user trends, combined with cyclical fluctuations in the semiconductor industry, saw the global semiconductor automated testing equipment (ATE) market post a sharp decline in revenues in 2019. However, a surge in semiconductor test volumes and stringent test demands from the communication, consumer electronics, automotive and healthcare verticals are expected to revive the industry. A recent analysis by Frost & Sullivan forecasts that revenues from the sector will grow at a CAGR of 3.7% between 2019 and 2026 to reach $6 billion.
"There is a need for adjusting the product portfolio to integrate advanced test solutions and augment low-cost testing methodologies," said Riti Newa, Research Associate, Industrial at Frost & Sullivan. "Next-generation testing requires innovation and technological advancements to accommodate the high requirements of segments such as artificial intelligence (AI), automotive and 5G networks."
Frost & Sullivan's latest research, Global Semiconductor Automated Test Equipment Market, 2019, explores the trends and factors influencing the global semiconductor automated test equipment industry and provides a thorough analysis of the current market scenario. The report examines key market drivers and restraints and presents detailed revenue forecasts through the year 2026. The research also identifies the opportunities for growth in this sector and offers strategic recommendations to leverage them.
For further information on this analysis, please visit: http://frost.ly/40y
Investments across the 5G network infrastructure and innovations in semiconductor packaging provide new growth opportunities for market vendors. Unified and integrated testing solutions along with test methodologies that accommodate high-speed parallel testing can assist in ATE product expansion. Differentiated market approaches such as transitions from product ownership to service ownership can be a major growth factor in addressing the price-sensitive semiconductor ATE market.
"There is a growing need for advanced ATE and next-generation test solutions to accommodate rising testing requirements for new markets in 5G and AI," noted Newa. "Growing innovation in areas of AI, automotive and 5G communication is boosting the production of high-end IC chips and other semiconductor equipment, which can potentially renew the market demand for ATE."
Semiconductor test equipment manufacturers can also boost revenues by:
Global Semiconductor Automated Test Equipment Market, 2019 is a part of Frost & Sullivan's Measurement and Instrumentation Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Global Semiconductor Automated Test Equipment Market, 2019
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