PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1468704
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1468704
Market Overview
In 2023, the automotive emission test equipment industry produced revenue of USD 826.5 million, and the industry is also projected to expand at a rate of 5.1% over the projection period, reaching USD 1,164.5 million by the end of the decade.
The ongoing development of the Internet of Things (IoT) technology is causing a change in the way that vehicular emissions are controlled. There is an IoT application that not only allows the deployment of emission sensors and other parameters but also enables the monitoring of emission levels in real-time.
The PEMS provides real-time, reliable, and accurate gas mass emissions with a calibration permitted to meet or exceed the NIST traceability standards. PEMS are light, and they are portable hence they are more suitably transported to various testing situations on the road. For example, on-road measurements.
The advance in environmental awareness over time with the consequent concerns for its impact on human activities have necessitated the rules on emissions by the governments to get stricter. Euro6 which is a direct reflection of the shift from Euro1 to Euro6 with its clear determination to decrease the number of pollutants like NOx, released by diesel engines, shows progress in the way to the desired goal. Carbon dioxide emissions have been on the rise, and this has given a spurt to automotive testing machinery.
Key Insights
In 2023, the testing equipment had an industry share of approximately 45%.
This is propelled by severe government guidelines on vehicle emissions, directing to a high need for tools that guarantee emission limits are met.
Awareness of contamination's impact on health and the atmosphere has augmented the need for testing equipment.
Automakers and investors look at emissions control, carbon footprint decrease, and sustainability aspects resulting in the buying of testing equipment.
Testing Services are projected to hit a CAGR of 5.5% by 2024-2030.
Greenhouse gas emissions from medium and heavy-duty vehicles in China and India are major concerns; thus, gas stations and public spaces must increase testing services.
The chassis dynamometer held a market share of around 25% in 2023.
It is a mechanical device used to simulate different road conditions in a controlled environment for vehicle testing and development.
Vehicle emission test systems are expected to grow at a CAGR of 5.7% during 2024-2030 due to government regulations on carbon emissions and increasing concerns about automobile emissions.
Authorized service centers had a market share of around 50% in 2023.
Increased car purchases led to higher demand for service centers, particularly for emission control inspections.
They often have access to manufacturer-approved emission testing instruments, attracting more customers.
Their larger network and visibility compared to individual garages build customer trust and enable them to handle a significant volume of vehicles.
Europe held the largest market share in the automotive emission test equipment market in 2023.
The region is one of the biggest car manufacturing centres with plants of many OEMs (Original Equipment Manufacturers).
The major role of the European trucking sector in the worsening of global warming cannot be underestimated.
The manufacturers based in Europe conduct tests on their cars in order to check if these meet the emission standards.
The APAC market is expected to be the fastest-growing, with a CAGR of 5.8% from 2024 to 2030.
The cost-effective production in APAC lures OEMs from North America and Europe to purchase these devices, as a result, there is a rapid rise in the demand for pollution-checking devices.
Tight pollution levels in some countries in APAC create regular pollution checks thereby, fueling the market expansion as well.