Automated test equipment market seen reaching $13.67 billion by 2031

Mordor Intelligence says the global automated test equipment market is on track to rise from $9.83 billion in 2026 to $13.67 billion by 2031, driven by advanced semiconductor nodes, AI chips, automotive electronics and system-in-package adoption. The report points to stronger demand for system-level testing as chips become smaller, more complex and more widely used in EVs and data-center hardware.

Why it matters: - The automated test equipment market sits at the center of semiconductor production, where faster, more precise testing affects chip yields, quality and time to market. - Demand is rising alongside AI processors, electric vehicles, 5G infrastructure and advanced packaging, which require more complex validation. - The shift toward system-level testing matters because conventional parametric tests are no longer enough for many advanced chip designs.

What happened: - Mordor Intelligence projected the automated test equipment market will grow from $9.83 billion in 2026 to $13.67 billion by 2031. - The firm said the market is set to expand at a 6.82% compound annual growth rate during 2026-2031. - The report tied that growth to advanced semiconductor testing, system-in-package adoption and rising complexity in chip manufacturing. - Mordor Intelligence released the update from Hyderabad, Telangana, India, on Oct. 27, 2026.

The details: - Semiconductor makers are investing in testing tools that can handle shrinking technology nodes, including designs below 7 nanometers. - Advanced tester architectures, low-noise measurement systems and machine-learning-based test optimization are gaining traction to improve yields and cut debugging time. - AI processors and high-performance computing chips are increasing demand for more precise validation. - Automotive electronics are adding pressure on test systems because EVs, ADAS, battery management systems and powertrain electronics all require specialized validation. - Silicon carbide and gallium nitride power devices need high-voltage testing and thermal reliability checks. - Functional-safety testing is becoming more important for automotive electronic systems. - System-in-package designs are making testing more difficult because multiple chips and functional blocks are being packed into compact devices. - System-level testing helps evaluate devices under operating conditions and can expose faults missed by conventional parametric testing. - Demand for AI accelerators, advanced memory and high-performance consumer electronics is supporting purchases of system-level testers and burn-in equipment. - Asia-Pacific leads the market, supported by semiconductor ecosystems in Taiwan, South Korea, China and Japan. - North America remains important because of semiconductor manufacturing investments, advanced chip design capabilities and government support for domestic production. - Europe is expanding testing capabilities tied to automotive electronics, industrial semiconductors and power devices.

Between the lines: - The report suggests the test-equipment market is becoming more specialized as chips move into smaller nodes and more complex packaging formats. - Competition is likely to hinge on throughput, multi-site testing, accuracy and support for advanced devices such as AI processors and wide-bandgap power semiconductors. - The company also flagged a broader shift from wafer-only validation toward package, final and system-level test coverage. - A March toward domestic semiconductor capacity in the U.S. and Europe could support longer-term demand for advanced test platforms.

What's next: - Advantest’s Pin Scale 5000B digital test solution, announced in April 2026, is aimed at AI and high-performance computing devices. - Teradyne and Tokyo Electron announced an integrated test cell in June 2026 for known-good-device screening in AI and data-center chips. - Mordor Intelligence expects continued investment in wafer probe equipment, package testing platforms and automated handlers as manufacturing and packaging complexity rises. - The company’s report is available in Japanese, French, German, Spanish and Portuguese.

The bottom line: - Automated test equipment is moving from a back-end support function to a strategic enabler of advanced chip production, especially for AI, EV and high-density packaging markets. - More information is available in the full report.