Automotive Emission Test Equipment Market Size, Share & Trends Analysis Report By Solution (Emission Test Software, Emission Test Services), By Emission Equipment, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive emission test equipment market size was exhibited at USD 722.30 million in 2023 and is projected to hit around USD 1,199.15 million by 2033, growing at a CAGR of 5.2% during the forecast period of 2024 to 2033.

Key Takeaways:

• Europe dominated the market for automotive emission test equipment, accounting for 35.0% of the global revenue share in 2023.
• The emission test equipment segment held the largest share in the market for automotive emission test equipment and accounted for 47.1% of the global revenue in 2023.
• The other vehicle emission test equipment/components segment dominated the market with 86.0% of the global revenue share in 2023.

Automotive Emission Test Equipment Market by Overview 

The automotive industry is witnessing a paradigm shift towards sustainability and environmental consciousness, with stringent regulations governing emissions control. As governments worldwide impose stricter emission norms, the demand for effective automotive emission test equipment is burgeoning. This article provides a comprehensive overview of the automotive emission test equipment market, including its current landscape, key drivers, challenges, and future prospects.

Automotive Emission Test Equipment Market Growth

The growth of the automotive emission test equipment market is propelled by several key factors. Firstly, stringent emission regulations imposed by governments worldwide necessitate the adoption of advanced testing equipment to ensure compliance. Secondly, continuous technological advancements in emission testing technologies, such as portable emissions measurement systems (PEMS) and remote sensing devices, drive market expansion by offering improved accuracy and efficiency. Thirdly, the rising production of vehicles, particularly in emerging economies, amplifies the demand for reliable emission testing solutions to meet regulatory standards and ensure environmental sustainability. These growth factors collectively underscore the significance of automotive emission test equipment in addressing environmental concerns and advancing the automotive industry towards a cleaner and greener future.

Automotive Emission Test Equipment Market Report Scope

Automotive Emission Test Equipment Market Dynamics

• Regulatory Compliance:

The automotive industry is subject to stringent emission regulations imposed by governments worldwide to mitigate air pollution and address climate change concerns. Compliance with these regulations necessitates the use of sophisticated emission test equipment capable of accurately measuring pollutants emitted by vehicles. As regulatory standards continue to evolve and become more stringent, the demand for advanced testing solutions is expected to increase, driving market growth. Manufacturers and service providers must continually innovate to develop cutting-edge emission test equipment that meets regulatory requirements and ensures environmental sustainability.

• Technological Advancements:

Ongoing advancements in emission testing technologies play a pivotal role in shaping the automotive emission test equipment market. Innovations such as portable emissions measurement systems (PEMS), remote sensing devices, and real-time monitoring solutions have significantly enhanced the accuracy, efficiency, and effectiveness of emission testing procedures. These technological advancements enable automotive manufacturers, testing facilities, and regulatory bodies to obtain precise emission data, identify non-compliant vehicles, and enforce regulatory standards more effectively. Additionally, the integration of Internet of Things (IoT) and artificial intelligence (AI) technologies into emission test equipment enables predictive maintenance, remote monitoring, and data-driven insights, further driving market growth.

Automotive Emission Test Equipment Market Restraint

• High Initial Cost:

One of the primary restraints hindering the widespread adoption of automotive emission test equipment is the high initial cost associated with acquiring and deploying advanced testing solutions. The upfront investment required for purchasing sophisticated testing equipment, such as portable emissions measurement systems (PEMS) or remote sensing devices, can be substantial, particularly for small-scale automotive service providers and testing facilities. Additionally, the costs associated with installation, calibration, and training further contribute to the financial burden. As a result, budget constraints may deter some stakeholders from investing in state-of-the-art emission test equipment, limiting market penetration and adoption rates. 

• Complexity of Calibration and Maintenance:

Another significant restraint facing the automotive emission test equipment market is the complexity of calibration and maintenance procedures. Ensuring the accuracy and reliability of emission test results necessitates regular calibration and maintenance of testing equipment, which can be time-consuming, labor-intensive, and resource-demanding. Calibration requires specialized knowledge, equipment, and expertise, often requiring the involvement of skilled technicians or third-party service providers. Moreover, the need for periodic maintenance to address wear and tear, component degradation, and software updates further adds to the operational challenges.

Automotive Emission Test Equipment Market Opportunity

• Growing Emphasis on Electric Vehicle (EV) Testing:

With the rapid electrification of the automotive industry, there is a burgeoning opportunity for emission test equipment tailored specifically to electric vehicles (EVs). As the adoption of EVs continues to rise, there is a growing need for testing solutions that can accurately assess battery performance, evaluate electric drivetrain efficiency, and measure overall environmental impact. Additionally, the development of emission testing protocols specific to EVs, including range testing and energy consumption assessments, presents a lucrative opportunity for manufacturers and service providers.

• Adoption of Green Testing Solutions:

There is an increasing emphasis on developing environmentally sustainable testing solutions within the automotive emission test equipment market. Stakeholders are exploring innovative approaches to minimize energy consumption, reduce waste generation, and mitigate environmental impact throughout the testing process. This includes the integration of renewable energy sources, such as solar or wind power, into testing facilities, as well as the implementation of eco-friendly materials and manufacturing practices. Moreover, the development of green testing technologies, such as low-emission testing equipment and energy-efficient testing methodologies, presents an opportunity for market differentiation and leadership.

Automotive Emission Test Equipment Market Challenges

• Cost Constraints:

One of the primary challenges hindering the widespread adoption of automotive emission test equipment is the high cost associated with acquiring and implementing advanced testing solutions. The initial investment required for purchasing sophisticated equipment, such as portable emissions measurement systems (PEMS) or remote sensing devices, can be substantial, particularly for small-scale automotive service providers and testing facilities. Additionally, the costs associated with installation, calibration, and training further contribute to the financial burden.

• Calibration and Maintenance Complexity:

Ensuring the accuracy and reliability of emission test results requires regular calibration and maintenance of testing equipment, which can be complex and resource-intensive. Calibration procedures demand specialized knowledge, equipment, and expertise, often necessitating the involvement of skilled technicians or third-party service providers. Moreover, the need for periodic maintenance to address wear and tear, component degradation, and software updates further adds to the operational challenges. 

Segments Insights:

Solution Insights

The emission test equipment segment held the largest share in the market for automotive emission test equipment and accounted for 47.1% of the global revenue in 2023. Moreover, this segment is anticipated to continue its dominance over the forecast period on account of the rising demand for testing equipment worldwide. The segment holds a substantial market share as compared to the software segment.

The emission test services segment, on the other hand, is expected to register the highest CAGR of 5.8% during the forecast period. The strong demand can be attributed to the increasing emphasis placed on reducing the release of greenhouse gases by passenger and light-duty vehicles, especially in developing countries such as China and India.

Emission Equipment Insights

The other vehicle emission test equipment/components segment dominated the market with 86.0% of the global revenue share in 2023. The segment is anticipated to maintain its dominance over the forecast period. The growth is attributed to the rising demand for automotive emission test systems by a large number of automobile manufacturers across the world. Advancements in vehicle emission diagnostic systems, such as onboard diagnostic tools, are also driving the growth of the other equipment segment.

The opacity meters/smoke meters segment is projected to expand at a significant CAGR of 3.1% during the forecast period. The demand for smoke meters is rising steadily, as they are used to detect and measure smoke emitted from diesel engines. Opacity meters find significant utilization in periodic technical inspection (PTI) and inspection & maintenance (I&M) programs.

Regional Insights

Europe dominated the market for automotive emission test equipment, accounting for 35.0% of the global revenue share in 2023. Countries in the region, such as the U.K., Germany, and the Netherlands, are at the forefront of adopting vehicle emission testing norms, as well as stringent rules and regulations as prescribed by the European Union.

On the other hand, the Asia Pacific region is expected to expand at the fastest CAGR of 6.2% during the forecast period. The increasing urbanization in this region is encouraging the introduction and implementation of numerous initiatives taken by regional countries that are aimed at regulating and monitoring vehicle exhausts. Besides, the region is transforming into the largest automobile manufacturing hub owing to the low production costs, creating significant market opportunities.

Recent Developments

• In February 2022, HORIBA announced that its vehicle emission test automation software, STAR VETS, had been made available for the Windows 10 64-bit operating system. The software ensures that vehicle emission tests run efficiently and smoothly with preloaded processes, configuration data, and results calculations for a broad range of regulatory compliances
• In January 2022, Capelec, in partnership with IFPEN, developed Real-e, a connected tool that measures emissions in a vehicle’s exhaust gases in actual driving conditions. These measurements are based on the driving style, traffic conditions, and the kind of journey

Some of the prominent players in the automotive emission test equipment market include:

• Opus Inspection
• GEMCO Equipment Ltd.
• TÜV Nord Group
• CAPELEC
• HORIBA, Ltd.
• Applus+
• SGS SA
• AVL List GmbH
• TEXA S.p.A.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive emission test equipment market.

Solution

• Emission Test Equipment
• Emission Test Software
• Emission Test Services

Emission Equipment

• Opacity Meters/Smoke Meters
• Other Vehicle Emission Test Equipment/Components

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)