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The global automotive industry is experiencing a slowdown. In 2019, vehicle sales worldwide experienced a decline of over 4%, largely due to a slump in demand from India and China. Major automotive original equipment manufacturers (OEMs) are instead investing in the development of advanced driver assistance systems (ADAS) and electric vehicle (EV) technologies, both of which will continue to experience growth during the forecast period. Another characteristic of the automotive industry is the growing importance of Ethernet technologies that support vehicles’ underlying communications networks. OEMs are moving away from controller area networks bus technologies in favor of Ethernet technologies as the number of sensors incorporated into the car increases. The shift will further increase when vehicle-to-everything technologies are included.

Test and measurement OEMs should capitalize on this opportunity by providing innovative solutions that can cost-effectively simulate the drivability of the car, provide Ethernet testing, and offer enhanced power electronics solutions to test and validate different EV components that support the greater ecosystem. Likewise, companies that provide third-party testing services will gain traction in the autonomous cars and EV market, especially among start-ups that are challenged by their inability to scale and expand into new geographies efficiently due to differences in regional regulations. The development of autonomous cars and EVs promises significant returns to stakeholders, especially the testing community. Therefore, it is a major growth opportunity for the test and measurement industry, provided the right testing solutions are offered.

The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.