EV test equipment market seen reaching $346.9 million by 2031

Allied Market Research says the global EV test equipment market will grow from $40.7 million in 2021 to $346.9 million by 2031, driven by rising EV adoption, battery innovation and tighter emissions rules. The report points to EV charging as a fast-growing application and BEVs as the leading propulsion segment.

Why it matters: - The EV test equipment market is expanding alongside electric vehicle sales, battery innovation and charging infrastructure buildout. - Demand for battery testing, power electronics testing, dynamometers and charger testing is rising as automakers and suppliers work to improve performance and meet emissions rules. - The market size forecast signals more spending on validation and certification tools across the EV supply chain.

What happened: - Allied Market Research published a report on the global EV test equipment market covering 2021-2031. - The market was valued at $40.7 million in 2021 and is projected to reach $346.9 million by 2031. - The forecast implies a 23.8% compound annual growth rate from 2022 to 2031. - The report covers propulsion type, vehicle type, top speed, vehicle class and application. - The report is available as a sample report. - The full report can be purchased here.

The details: - EV test equipment includes battery testing, E-drive testing, power electronics test systems, dynamometers, motor testing and charger testing systems. - The report ties market growth to stronger consumer interest in environment-friendly vehicles and better vehicle performance. - European Environment Agency data cited in the report show electric cars made up 11% of newly registered passenger cars in 2020. - BEVs accounted for 6% of total new car registrations in 2020, while PHEVs accounted for 5%. - The report says subsidies, tax exemptions and favorable policies in Europe and Asia-Pacific have supported EV production and sales. - China has used sales tax exemptions, preferential financing and traffic management policies to support EVs. - Japan plans to raise the EV and plug-in hybrid share to 20% to 30% by 2030 and has increased subsidies for buyers. - South Korea has used subsidies, tax rebates and charging infrastructure investment, with a goal of 430,000 EVs on the road by the end of 2022. - The report says EV demand is also being supported by battery chemistry advances, including lithium-ion, solid-state and other advanced designs. - Market restraints include the high cost of advanced equipment and reduced EV subsidies. - Opportunities include faster growth in EV charging stations and government promotion of EVs.

Between the lines: - The report suggests test equipment demand is becoming a second-order growth market behind EV adoption itself. - The strongest growth areas line up with where EV technology is changing fastest: charging, batteries and higher-performance vehicle platforms. - COVID-19 disrupted automotive production and supply chains, but the report says EV sales still rose in several European markets during 2020. - Germany, France and Italy registered 55% higher electric car sales in Europe in the first half of 2020 than in 2019. - Stricter European Union CO2 standards for new passenger cars and vans from January 2020 increased the need for EV testing in Europe.

What’s next: - BEVs are expected to remain the leading propulsion segment by growth rate. - Commercial vehicles are expected to show notable growth over the forecast period. - The 100 to 125 mph vehicle top-speed segment is projected to remain the highest contributor by growth rate. - Luxury vehicles are expected to post notable growth. - EV charging is expected to be the fastest-growing application area. - The report lists Arbin Instruments, ATESTEO GmbH, AVL, Blum-Novotest GmbH, Burke Porter Group, Chroma ATE Inc., Durr Group, FEV Group GmbH, HORIBA, Ltd., Intertek Group Plc, Keysight Technologies, KUKA Aktiengesellschaft, SGS SA, Sierra Instruments, Inc., Softing AG, Tasi Group, TÜV Rheinland and ZF Friedrichshafen AG as leading players.

The bottom line: - EV test equipment is moving from a niche engineering category to a fast-growing market tied directly to the global EV transition.