The automotive test equipment market is projected to reach USD 4.79 billion by 2032 from USD 3.66 billion in 2025 at a CAGR of 3.9%. The collaboration between OEMs and Tier 1 suppliers creates demand for co-engineered, highly specialized automotive testing equipment. For instance, in June 2023, Bosch and AVL co-developed advanced test benches for hybrid and electric powertrains, which was a joint innovation. The growing deployment of hydrogen, fuel cell, and alternative powertrain vehicles drives niche testing requirements. In March 2024, Horiba Ltd. expanded its hydrogen fuel cell testing portfolio, while FEV Group validated hydrogen combustion engines for European OEMs.
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The expansion of mobility-as-a-service (MaaS) fleets requires continuous and scalable testing infrastructure. In September 2023, National Instruments (NI) partnered with shared mobility providers to implement hardware-in-the-loop (HIL) systems for predictive fleet reliability. Market players can leverage these developments by forming alliances with OEMs and EV start-ups. For instance, in January 2024, Keysight Technologies partnered with Rivian on EV validation tools, and in May 2023, Siemens offered compliance-focused digital twin platforms through its MaaS fleet testing initiative.
The automotive test equipment market is dominated by established players such as AVL (Austria), Horiba, Ltd. (Japan), Robert Bosch GmbH (Germany), Phinia Inc.(US), and Illinois Tool Works Inc. (US). These companies adopt product launches, deals, and other strategies to gain traction in the market.
AVL, headquartered in Graz, Austria, is a global leader in automotive testing, simulation, and engineering solutions with a strong legacy in powertrain and vehicle validation. Its automotive test equipment portfolio spans engine dynamometers for internal combustion, hybrid, and electric motors, powertrain test systems covering transmissions, e-axles, and hybrid drivetrains, and chassis dynamometers for emissions, fuel economy, and EV range testing under real driving conditions. Modern engine dynamometers support electric motors by measuring torque, power, and efficiency, while enabling thermal, durability, and performance testing under controlled load conditions. When integrated with battery simulators or HIL systems, they also validate motor controllers, inverters, and hybrid powertrain interactions for optimized real-world performance. The company also develops fuel injector test systems for precise calibration and spray analysis across diesel, gasoline, hydrogen, and alternative fuels, along with wheel alignment systems supporting suspension geometry and ADAS sensor calibration. Beyond this, AVL’s product portfolio extends into battery test systems, fuel cell testing, inverter validation, thermal management solutions, and software-driven XiL (Model-, Software-, Hardware-, Vehicle-in-the-Loop) platforms that integrate virtual and physical validation.
Strategically, AVL has shifted its focus from traditional ICE testing to e-mobility, hydrogen, and software-defined vehicle (SDV) environments, emphasizing modular and scalable test benches, digital twin integration, and sustainability-driven solutions for CO2-neutral fuels. Collaborations remain central to its growth, with long-standing engagements with OEMs such as Volkswagen, Daimler Truck, Toyota, Hyundai, and Tata Motors, Tier-1 suppliers like Bosch, ZF, Denso, and Continental, as well as research alliances under EU Horizon projects and digital technology partnerships with Siemens, National Instruments, and Dassault Systèmes. This combination of advanced equipment, diversified product portfolio, and strategic collaborations positions AVL as a frontrunner in the global automotive test equipment market.
Horiba Ltd., headquartered in Kyoto, Japan, is a prominent provider of analytical and automotive test systems with a strong presence across Asia, Europe, and North America. In the automotive domain, Horiba has established itself as a key competitor to AVL with a diversified test equipment portfolio. The company offers engine dynamometers for combustion and hybrid powertrain evaluation, powertrain testing systems tailored for e-axles, transmissions, and hybrid configurations, and chassis dynamometers widely used for emissions certification, EV range testing, and real-world driving condition simulation. It also provides fuel injector test systems that enable precision spray pattern analysis and calibration for conventional and alternative fuels, along with wheel alignment and geometry systems supporting suspension accuracy and ADAS sensor calibration. Beyond these, Horiba’s broader product portfolio includes emission measurement systems, onboard emissions testing equipment, fuel cell and battery testing systems, drive cycle simulators, and integrated data management software. Strategically, the company is leveraging its expertise in emissions measurement to transition into e-mobility and hydrogen testing solutions, offering platforms for fuel cell durability, high-voltage battery performance, and inverter validation. Collaborations form a central pillar of its strategy, with Horiba working closely with global OEMs such as Toyota, Honda, Ford, and Volkswagen, as well as Tier-1 suppliers including Bosch and Denso, to ensure compliance with global emission norms and electrification requirements. Additionally, Horiba engages with governmental agencies and research institutions to co-develop next-generation emission standards and hydrogen testing protocols. Through this combination of advanced test systems, strong regulatory expertise, and strategic partnerships, Horiba maintains a leading position in the global automotive test equipment industry, with particular strength in emission measurement and certification-related solutions.
Phinia Inc., headquartered in Auburn Hills, Michigan, US, is a 2023 spin-off from BorgWarner that specializes in fuel systems, engine components, and related test equipment, with a strong focus on fuel injector and fuel pump test systems for gasoline, diesel, biofuels, and hydrogen. Unlike AVL and Horiba, which provide a full suite of automotive test solutions, Phinia’s portfolio is more niche, comprising injector spray analysis platforms, high-pressure fuel pump validation rigs, and engine component testing systems tailored to passenger cars, heavy-duty trucks, and industrial engines. Strategically, the company follows a dual-path approach, serving conventional ICE markets while expanding into alternative fuel technologies such as hydrogen internal combustion engines (H2 ICEs) and biofuel systems, aligning its test equipment with OEM requirements for precision calibration, durability, and emission compliance. Phinia collaborates with leading manufacturers such as Cummins, Daimler Truck, Ford, and Stellantis, as well as research institutes advancing hydrogen standards, thereby positioning itself as a specialist test equipment provider focused on the evolving needs of fuel delivery and combustion systems in the transition toward low-carbon mobility.
Related Reports:
Automotive Test Equipment Market by Equipment (Dynamometer, Vehicle Emission Test, Wheel Alignment, Battery Test System), Propulsion (ICE, EV), Vehicle Type (PC, CV), End Market, Application, Advanced Technology, and Region - Global Forecast to 2032
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