Kamui Kobayashi completed 72 laps on day one but crashed the Renault-powered CT05 at turn three in the final half hour of the afternoon session.
The right-hand side of the car was heavily damaged but the team had hoped to fix the car and run on Wednesday.
However, after inspecting the chassis, the Leafield-based outfit decided the damage was serious enough to cut its test short.
“While obviously not ideal, this ensures the team can now focus on the next Grand Prix in Monaco, starting next week,” Caterham added.
Reserve driver Robin Frijns had originally been scheduled to run in the car on day two of the test, but the Dutchman will have to wait until later in the year to sample the team’s 2014 F1 machine once again.
Image courtesy of Octane Photographic