The battery testing equipment market was valued at US$ 452.40 million in 2019 and is projected to reach US$ 653.71 million by 2027; it is expected to grow at a CAGR of 4.7% from 2020 to 2027.
North America is the most technologically advanced region across the World, with major economies such as the US, Canada, and Mexico. The developed countries in the region are known for adopting advanced technologies, high standards of living, and developed infrastructure. Several industries such as such as oil & gas, automotive, transportation, and telecommunications in the region are expanding their production scale due to rising demand from consumers.
High disposable incomes and technological advancements are propelling the growth of the consumer electronics industry. Smartphones, personal computers, tablets, music players, washing machines, and TVs have a broader user base in North America. The consumer electronics industry extensively uses lithium-ion batteries. With rising integration of lithium-ion batteries in consumer electronics, the adoption of battery testing equipment will increase to analyze the battery life and leakage of aqueous solution from battery, among others.
Another factor which will create a positive impact on the growth of the battery testing equipment market is growing production of electric vehicles. In June 2018, General Motors Company collaborated with Honda Motor Co. to deliver advanced batteries to execute their plans related to EV. With such a huge focus on bringing EVs on the road in the region, the manufacturing of batteries will eventually increase, which is anticipated to flourish the adoption of battery testing equipment.
The battery testing equipment market is segmented on the basis of product type, application, and end-user. Based on product type, the market is bifurcated into portable battery testing equipment and stationary battery testing equipment. The stationary battery testing equipment segment is expected to hold a larger market share during the forecast period. Based on application, the market is segmented into module testing, cell testing, and pack testing. The cell testing segment contributed the largest revenue share in 2019, while the market for pack testing segment is projected to grow at faster rate during 2020–2027. Based on end-user, the market is segmented into automotive, electronics and semiconductor, telecom, healthcare, energy and utility, and others. Further, in 2019, the electronics and semiconductor segment led the battery testing equipment market globally.
The US is the most affected country in North America due to the COVID-19 outbreak. The continuous growth of infected cases has led the government to impose lockdown across the nation’s borders during Q2 of 2020. The majority of the manufacturing facilities are either temporarily shut or are operating with minimum staff. The supply chain of components and parts is disrupted. These are a few of the critical issues faced by the North American manufacturers.
Since the US has a larger number of battery testing equipment, component manufacturers, and industries, the outbreak is hindering each production and revenue generation. The lower number of manufacturing staff has resulted in lesser production quantity. On the other hand, the limited availability of raw materials and closing of aerospace operations have also negatively impacted the battery testing equipment market in the US. However, the rising military expenditure of the countries such as China, India, the US and others and growing development of electric vehicles by companies such as Tesla are expected to provide growth opportunities to the market in the near future.
The overall battery testing equipment market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast of the battery testing equipment market with respect to all the segments. It also provides the overview and forecast for the global market based on all the segmentation provided with respect to five major regions North America, Europe, Asia Pacific, Middle East and Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the battery testing equipment market.
A few major players operating in the global battery testing equipment market are Arbin Instruments; Century Yuasa Batteries Pty Ltd; CHAUVIN ARNOUX; Chroma Systems Solutions, Inc.; DV Power; Extech Instruments; Megger Group Limited; Midtronics, Inc.; Storage Battery Systems, LLC; and Xiamen Tmax Battery Equipment Limited.