Automotive Emission Test Equipment Market Size - USD 1375.64 Mn by 2033

Market Overview

The global automotive emission test equipment market size is estimated to reach USD 1375.64 million by 2033, up from USD 854.38 million in 2023, at a compound annual growth rate (CAGR) of 4.98%.

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The automotive industry is undergoing a paradigm shift driven by increasing environmental concerns, stringent regulatory mandates, and technological advancements. Among the critical aspects of this transformation is the focus on reducing vehicle emissions to mitigate air pollution and combat climate change. As a result, the demand for automotive emission test equipment has surged, reflecting the industry's commitment to enhancing environmental sustainability.

The automotive emission test equipment market is primarily driven by stringent regulatory standards aimed at reducing vehicle emissions and mitigating environmental pollution. Technological advancements, such as the integration of artificial intelligence and machine learning, are enhancing the accuracy and efficiency of testing procedures, while rising environmental awareness among consumers and policymakers is fostering a greater emphasis on emission reduction efforts. The expansion of electric and hybrid vehicles is reshaping testing requirements, driving demand for specialized equipment.

Key Trends and Findings

• The adoption of remote emission testing solutions, enabled by advancements in connectivity and Internet of Things (IoT) technologies, is on the rise. These solutions offer real-time monitoring capabilities and enhance operational efficiency by enabling off-site testing and diagnostics.
• Compact and portable emission testing devices are gaining popularity due to their convenience and versatility. These handheld solutions enable on-the-go testing, field inspections, and mobile testing services, catering to diverse customer needs.
• Market players are increasingly focused on developing eco-friendly testing technologies that minimize environmental impact. This includes the use of renewable energy sources, sustainable materials, and energy-efficient designs in equipment manufacturing and operation.
• The market in North America is driven by stringent emission regulations enforced by regulatory bodies such as the Environmental Protection Agency (EPA) in the United States and similar agencies in Canada.
• The rising emphasis on environmental sustainability and clean transportation initiatives drives market growth in Europe.

Market Drivers

Stringent Regulatory Standards

The stringent regulatory standards imposed by governments worldwide are pivotal in propelling the automotive emission test equipment market forward. With a growing emphasis on environmental sustainability, authorities are tightening emission regulations to combat air pollution and address the urgent challenges posed by climate change.

For Instance,

• In April 2023, The Environmental Protection Agency (EPA) has unveiled a set of more ambitious proposed standards aimed at further reducing detrimental air pollutant emissions from light-duty and medium-duty vehicles, effective from model year 2027 onwards. This proposal extends upon the EPA's previously finalized standards concerning federal greenhouse gas emissions for passenger cars and light trucks spanning model years 2023 to 2026. The proposed standards are designed to be phased in gradually over the model years 2027 through 2032.
• In 2023, The European Commission has presented a proposal for revising the Regulation on CO2 emission standards for heavy-duty vehicles. If accepted, this proposal would usher in stronger CO2 emission standards for heavy-duty vehicles starting from 2030 onwards. Additionally, the scope of the Regulation would be broadened to include smaller trucks, long-distance buses, city buses, and trailers.
• In November 2022, The European Commission (EC) introduced its proposed Euro 7 regulation for both heavy-duty vehicles (HDVs) and light-duty vehicles (LDVs). This regulation aims to establish fresh emission limits targeting pollutants that are harmful to human health.

These regulations mandate lower emissions thresholds for vehicles, necessitating the adoption of sophisticated testing equipment capable of accurately measuring pollutants. Consequently, there is an increase in demand for advanced emission testing technologies that can ensure compliance with these stringent standards.

Market Restraints

Insufficient Research and Development Infrastructure for Automotive Testing Equipment

The proliferation of stringent emission regulations worldwide has spurred original equipment manufacturers (OEMs) to rigorously test their vehicles to ensure compliance. Modern vehicles, including hybrid cars featuring hybrid powertrains, necessitate diverse testing equipment such as mobile-based solutions. However, a limited number of companies, exemplified by Intertek (UK), Ricardo (UK), and Horiba (Japan), offer testing solutions tailored for hybrid vehicles. Consequently, many automobile manufacturers opt to outsource these testing services, driving up the overall cost of vehicle production and impacting sales. The testing of hybrid cars demands advanced research due to their unique requirements, emphasizing the need for specialized testing equipment. The dearth of research and development facilities dedicated to automotive testing jeopardizes the advancement and innovation of products, thereby compromising the quality of vehicle testing processes.

Market Opportunities

Rapid Evolution of Automotive Technologies

The rapid evolution of automotive technologies offers a fertile ground for innovation in emission test equipment, presenting an opportune moment for market players to pioneer advanced testing solutions. By harnessing cutting-edge technologies like artificial intelligence (AI), machine learning (ML) and sensor integration, companies can push the development of next-generation emission test equipment.

Moreover, advancements in data analytics and predictive modeling enable predictive maintenance, minimizing downtime and optimizing equipment performance. By embracing technological innovation, market players can not only meet but exceed customer expectations for accuracy, reliability, and efficiency in emission testing.

Implementation of Remote-Sensing Technology

Utilizing remote-sensing technology is crucial for measuring exhaust emissions from vehicles during regular on-road operation, forming an integral component of any effective system aimed at controlling air pollution in the transportation sector. As regulatory standards for vehicle emissions become increasingly stringent worldwide, there is a growing demand for innovative solutions to accurately measure and monitor emissions levels. A commonly employed method for in-use vehicle emissions testing involves the utilization of a portable emissions measurement system (PEMS).

Presently, two primary commercial suppliers of remote sensing equipment and testing services operate in the United States and the European Union Hager Environmental and Atmospheric Technologies (HEAT) and Opus Inspection. Both companies have devised remote sensing systems adhering to similar overarching principles. The market for automotive emission test equipment stands to benefit from the expansion of such remote-sensing technology applications.

Key Segment Analysis

Solution Segment Analysis Preview

The emission test equipment segment captured a substantial market share of 45.08% in 2023. The increasing regulations aimed at reducing harmful pollutants such as carbon monoxide (CO), nitrogen oxides (NOx), and particulate matter (PM) necessitate the use of advanced emission test equipment to ensure adherence to emission limits. With growing concerns about air quality and climate change, there is a concerted effort to minimize vehicular emissions and mitigate their environmental impact. This awareness drives the adoption of emission test equipment as important tool in monitoring and reducing pollution levels.

Vehicle Type Segment Analysis Preview

The passenger car segment held considerable market share in 2023. The shifting consumer preferences and lifestyles have fueled the demand for passenger cars as a primary mode of personal transportation. With increasing urbanization, rising disposable incomes, and changing mobility patterns, passenger cars offer convenience, flexibility, and autonomy, making them a preferred choice for individuals and families alike. Furthermore, as authorities intensify their focus on reducing vehicle emissions to mitigate air pollution and combat climate change the demand for advanced emission test equipment for passenger cars also surges.

Regional Insights

Europe dominated the market with 36.22% of shares in the global automotive emission test equipment market. Europe has some of the strictest emission regulations globally, such as the Euro standards, which mandate lower emissions of various pollutants. Compliance with these regulations necessitates the use of advanced emission test equipment, driving demand in the market. Additionally, there is a strong importance of environmental protection and sustainability in Europe. Increasing awareness among consumers, policymakers, and industry stakeholders about the environmental impact of vehicle emissions fuels the demand for emission test equipment to ensure compliance with emissions standards and reduce pollution levels.

Asia Pacific is expected to grow at a fastest CAGR of 6.02% during the forecast period. Governments across the region are introducing initiatives and incentives to promote the adoption of cleaner and more fuel-efficient vehicles. These initiatives often include subsidies, tax breaks, and other incentives for electric vehicles and hybrids. To qualify for these incentives, vehicles must undergo rigorous emission testing, driving the demand for emission test equipment. Furthermore, the region is home to some of the world's largest automotive markets, including China, Japan and India. The expansion of the automotive industry in these countries has led to an increased focus on emission control and regulation, driving the demand for emission test equipment.

Recent Developments by Key Market Players

• June, 2023: AVL introduced test systems for ensuring compliance with brake emissions regulations. The newly launched test system for brake emissions regulation compliance integrates particulate emission measurement techniques and testing equipment expertise to assist stakeholders in meeting new brake wear emissions regulations.
• September, 2022: Continental announced an expansion of its workshop equipment portfolio with the addition of exhaust emissions testing capabilities. The technology company introduced the DX280 DC and the CCP800, two exhaust emissions testers designed for use in car workshops.
• December, 2021: The Connecticut Department of Motor Vehicles (DMV) unveiled a completely revamped web portal for the Connecticut Emissions Program. This user-friendly website equips Connecticut motorists with the necessary information and tools to effectively plan, schedule, and manage the emissions testing process.
• September, 2021: HORIBA announced the release of STARS VETS, its vehicle emission test automation software compatible with the Windows 10 64-bit Operating System. Forming part of HORIBA’s STARS Automation platform, STARS VETS enhances test cell efficiency and usability, thereby boosting customers’ productivity. This software streamlines vehicle emission tests by offering preloaded cycles, configuration data, and results calculations aligned with a wide range of regulatory standards.
• March, 2018: Intertek, a prominent provider of Total Quality Assurance services across various industries worldwide, unveiled a new capacity for automotive interior emission testing chambers tailored for Full Component Testing. This new service facilitates the detection of volatile organic components utilizing a 1m3 chamber dedicated to automotive interior VOC emission testing.

Market Companies

Some of the key players in automotive emission test equipment market are Opus Inspection, Inc., AVL List GmbH, Applus+, HORIBA, Ltd., CAPELEC, GEMCO Equipment Ltd., SGS SA, TEXA S.p.A., ETAS, and TUV Nord Group, among others.

Market Segments

By Solution

• Emission Test Equipment
• Capacity Meters/Smoke Meters
• Other Vehicle Emission Test Equipment/Components
• Emission Test Software
• Emission Test Services

By Application

• Periodic Testing Inspections
• Inspection & Maintenance

By Vehicle Type

• Passenger cars
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-East Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East & Africa