Automotive Emission Test Equipment Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Automotive Emission Test Equipment Market Size

Automotive Emission Test Equipment Market Trends & Drivers

Advancements in Testing Technology

• Advancements in the internet of things (IoT) technology are transforming how vehicular emissions are detected and managed. By connecting emission sensors and other devices to IoT networks, authorities are able to monitor emissions levels in real time.
• Portable emission measurement systems (PEMS) provide reliable and accurate gas mass measurement for both passenger cars and commercial vehicles. PEMS are lightweight and portable, which makes them more suitable for use in various testing situations, such as on-road measurements.

Stringent Regulations for Environmental Protection

• The government regulations on emissions have progressively tightened over time in response to the growing concerns about the environmental impact of human activities. The shift from Euro 1 to Euro 6 regulations, which show a determined attempt to reduce the level of pollutants, such as NOx, released by diesel engines, is indicative of this progression. The negative environmental consequences of emissions have significantly increased the need for automotive test equipment.

• All vehicles must fulfill emission guidelines in order to reduce the number of dangerous pollutants they emit. Emission tests are used to verify whether automobiles conform to these regulations or not. For this, emission testing booths have been set up at numerous public places, including petrol pumps (gas stations) around the world.
• Many bodies all over the world have implemented programs and standards aimed at reducing greenhouse gas emissions and improving fuel economy. The U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA) work together to solve such issues, by implementing fuel efficiency standards for heavy-duty trucks.

Increasing Demand for Electric Vehicles Is Main Restraint

• The increasing demand for electric vehicles (EVs) is the main factor that restrains the automotive emission test equipment market growth. As more consumers purchase EVs, the use of emission testing equipment will decrease. EVs, particularly BEVs and FCEVs, produce zero tailpipe emissions because they run only on electricity stored in batteries.
• The strict rules implemented by governments around the globe to reduce pollution and the improvements in the performance features of EVs increase the demand for them. Many countries have targets to have a specific percentage of EVs in the total number of vehicles in operation.
• For this, subsidies and other supportive measures have been implemented for the buyers and manufacturers of EVs, thus putting a gradually deepening dent in ICE automobile production.

High Cost and Need for Constant Innovation in Testing Equipment Are Main Challenges

• High-tech testing instruments are typically costlier than traditional testing instruments, especially when they are designed for testing hybrid vehicles’ emissions. This financial hurdle may prevent them from being widely used, particularly by agencies who want to provide cost-effective services.
• It usually takes some time for new technology to come in common usage across industries. The lack of widespread adoption poses difficulties for manufacturers seeking to capitalize on the advantages of modern vehicular pollution examining instruments.
• Finding the right mix between price and innovation is essential to satisfying customer demands and being competitive in emerging markets.

Automotive Emission Test Equipment Industry Outlook

Offering Insights

• Testing equipment held the largest market share, of around 45%, in 2023. This is due to the strict rules of the government on how much pollution automobiles can emit. Hence, there is a high demand for tools or equipment that helps ascertain whether these limits are being conformed to or not.
• The growing awareness of pollution and its impact on human and animal health and the overall environment has pushed both government agencies and the auto industry to use these tools to control pollution.
• The increasing focus of automotive companies and investors on taking responsibility for pollution, reducing their carbon footprint, and boosting sustainability makes them purchase testing equipment.
• Testing services are the fastest-growing category, with an expected CAGR of 5.5% during 2024–2030. The increasing focus on reducing the emission of greenhouse gases from medium-duty and heavy-duty vehicles, especially in China and India, increases the demand for these services at gas stations and other public spaces. 

Below are the offerings that were studied in this report

• Equipment (Largest Category)
• Testing Services (Fastest-Growing Category)
• Software

Product Insights

• Chassis dynamometer held the largest market share, of around 25%, in 2023. This is a mechanical device that uses one or more fixed roller setups to simulate different road conditions within a controlled environment. It is used for a wide variety of vehicle testing and development purposes. This device is capable of handling vehicles of varying sizes and weights, due to which it is widely used.
• This device is commonly used for distance testing and emission testing, and it also helps to assess how well vehicle engines and other related components perform over time.
• This mechanical device works like a treadmill for cars, trucks, vans, and SUVs. It helps test how the vehicles perform on the road in different conditions without actually having to drive them. It is used to check how much pollution vehicles produce, which is important for making sure they meet environmental criteria and keep the air clean. 
• The vehicle emission test system category is expected to advance at the highest CAGR, of 5.7%, during 2024–2030. This is mainly due to the strict rules of governments to reduce carbon emissions and the growing worries about automobile emissions.

Below are the types of products that were studied in this report:

• Chassis Dynamometer (Largest Category)
• Engine Dynamometer
• Vehicle Emission Test System (Fastest-Growing Category)
• Wheel Alignment Tester
• Fuel Injection Pump Tester
• Transmission Dynamometer

Vehicle Analysis

• Passenger vehicles held the larger market share, of around 70%, in 2023. This is due to the increasing spending of customers worldwide on passenger cars in the developing and developed nations. As most cars still run on fossil fuels, they are a major reason for emissions.
• The passenger vehicles category is also expected to advance at a CAGR, of 4.9%, during 2024–2030. This is mainly due to the technical advancements in areas such as fuel efficiency, pollution control, and driver assistance systems, which make passenger cars safer and more eco-friendly.

Below are the vehicles that were studied in this report

• Passenger (Larger Category)
• Commercial (Faster-Growing Category)

End User Insights

• The authorized service centers category held the largest market share, of around 50%, in 2023. As more people buy cars, there is an increase in business for service centers, also known as auto repair shops. They have to inspect more cars to keep up with the demand from customers seeking help with emission control. Therefore, additional instruments are required for a thorough examination of the vehicles.
• Additionally, authorized repair facilities are trusted to provide high-quality service, and they also have the necessary knowledge to handle many brands or models. Many also have access to manufacturer-approved emission testing instruments, which is why people frequently bring their vehicles to them. 
• Furthermore, such as service centers usually have a larger network and are more visible than individual garages, which increases customer trust. Their wider operational area enables them to serve a range of clients and manage a large number of vehicles.

Below are the end users that were studied in this report

• OEM Assembly Plants
• OEM R&D/ Technical Centers
• Authorized Service Centers (Largest and Fastest-Growing Category)
• Others

Geographical Analysis

• Geographically, Europe held the largest market share in the automotive emission test equipment market in 2023. This is because Europe is a major automotive hub with OEMs that have factories. Further, the trucking industry is quite prominent in the region and, therefore, a key emitter of GHGs.
• The awareness of people of the environmental impact of heavy commercial vehicles as well as light passenger vehicles is the main factor for the high usage of these tools in Europe. When customers purchase cars, they want to be sure they meet the emission criteria. So, manufacturers in Europe test their models for conformation to these limits.
• APAC is the fastest-growing market, with an expected CAGR of 5.8% during 2024–2030. This region offers cost-effective in production; hence, many established OEMs from North America and Europe have factories here. As more individuals in this region can purchase cars, the demand for pollution checking devices is increasing.
• Moreover, countries in the region, which are the most polluted in the world, which is why regular pollution checks are mandated here.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Faster and Larger Country Market)
  • Canada
• Europe (Largest Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Fastest-Growing Country Market)
  • U.A.E. (Largest Country Market)
  • Rest of MEA

Automotive Emission Test Equipment Market Share

To gain a competitive advantage, several domestic and international manufacturers are always coming up with new plans. Numerous corporations are employing a diverse range of marketing strategies and approaches in their efforts to engage with consumers and promote their products or services. These include partnerships and cooperations, acquisitions, introduction of new testing equipment, and construction of testing facilities.

Automotive Emission Test Equipment Industry News

• In July 2023, Applus Reliable Analysis Inc. acquired Suzhou Chunfen Test Technology Services Co. Ltd. to combine all its offerings for automotive testing solutions in one place.
• To launch the next-generation ultrasonic fuel consumption measurement sensors, Sentronics partnered with HORIBA UK in June 2022. This sensor offers real-time fuel consumption measurement for vehicle certification and verification.
• In July 2022, a tender from an international automotive manufacturer was won by Softing Automotive Electronics for vehicle parameterizing and diagnosing systems.