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The automotive testing, inspection, and certification (TIC) market size is forecast to increase by USD 6.48 billion at a CAGR of 6.4% between 2023 and 2028. The market's growth rate is influenced by various factors, including the expansion of the global automotive industry, a rising number of vehicle recalls, and advancements in automobile technology. These elements shape market dynamics, reflecting the evolving landscape of the automotive sector. With the automotive industry expanding worldwide and technological innovations driving progress, the market anticipates both opportunities and challenges, highlighting the importance of monitoring these factors for informed decision-making. Our report examines historic data from 2018-2022, besides analyzing the current and forecasted market scenario.
Furthermore, Europe was the largest geographical segment of the market due to developed automobile markets in countries such as Germany, the UK, France, Italy, and Spain. The automotive industry is one of the most significant contributors to the economy of Europe. Applus Services S.A company offers automotive testing, inspection, and certification services such as technical vehicle inspection services, including non destructive testing services and vehicle emission inspections. Also, Bureau Veritas SA company offers automotive testing, inspection, and certification services such as Product testing, Raw materials inspections, and Factory assessments.
Market Forecast 2024-2028
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The market plays a crucial role in ensuring the safety and compliance of modern automotive technologies. As the automotive sector embraces innovations like electric vehicles (EVs), connected cars, and advanced driver assistance systems (ADAS), stringent safety standards and regulations must be met. However, challenges such as lack of harmonization in TIC standards persist. The market also encompasses services for emission and fuel efficiency standards compliance, including certification for hydrogen fuel cell vehicles (FCVs) and refueling infrastructure. Autonomous vehicles (AVs) further necessitate extensive testing and certification. With vehicle inspection services addressing potential safety hazards and fleet management needs, including remote inspections and EV charger assessments, the automotive TIC market ensures the reliability and performance of vehicles on the road. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The automotive sector consists of a number of companies that design, develop, manufacture, and sell various types of vehicles, such as passenger automobiles and light trucks. It has experienced significant growth globally, owing to a rise in automobile sales. Further, some of the major automobile-producing countries are China, the US, Japan, Germany, and India. Many OEMs are focusing on developing automotive technologies demanded by their customers. Besides, safety standards, fuel efficiency standards, and regulations compliance drive the demand for TIC services.
Furthermore, testing is done on materials used for manufacturing vehicles, automotive lighting and components, and connected vehicle solutions. Vehicle inspection is done to ensure that the vehicles conform to safety and emission standards mandated by national or subnational governments and regulatory bodies. TIC services assist manufacturers in improving the marketability of their products and reducing costs in the pre-production phases. So, the rapid growth of automotive technologies is expected to drive market growth during the forecast period.
Many automotive TIC service providers are harnessing cutting-edge technologies such as robotics and analytics to transform their service offerings. Physical inspection of vehicles is widely being replaced by digital inspection, predictive maintenance, and integrated sensors. Furthermore, the implementation of virtual reality (VR) and augmented reality (AR) is helping open up significant opportunities in automotive TIC. AR is being used for TIC to improve service quality and efficiency.
Additionally, the use of AR technology helps in improving the testing of automated vehicles and can also reduce additional testing costs. AR combines the real world with the virtual world to create a faster, more efficient, and economical approach to testing automated vehicles. Advances such as digital TIC for vehicles provide growth opportunities and help OEMs improve their overall profit margins. Thus, such factors will propel market growth during the forecast period.
The automotive TIC process, crucial for ensuring vehicle safety and compliance with regulations, involves meticulous inspections by trained technicians and service managers. Certification bodies verify the authenticity of vehicle components before subjecting them to thorough examinations for safety, performance, and quality. Each country enforces its own automotive standards, necessitating manufacturers to adhere to specific regulations for vehicles sold in different markets.
Moreover, Homologation, a vital step, certifies vehicles as roadworthy according to government-mandated criteria. Failure in homologation tests leads to costly re-engineering efforts, impacting manufacturers' operating costs and causing delays in market entry. Compliance with new regulations, like the WLTP emissions standards, demands additional testing and equipment, further prolonging the automotive TIC process. These challenges are expected to impede the growth of the market in the forecast period.
The inhouse segment will account for a major share of the market's growth during the forecast period.?In-house TIC refers to performing TIC activities within the company instead of relying on outsourcing. In the case of in-house automotive TIC, automotive manufacturers themselves perform the TIC services as part of quality control and assurance, along with public bodies and organizations such as customs, competition authorities, and industrial health and safety authorities.
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The inhouse segment was valued at USD 9.08 billion in 2018. Furthermore, in-house poses a lesser risk as compared with outsourcing. Outsourcing involves the involvement of third parties to perform activities which are not under the direct control of the hiring company. Third parties may have loose security policies, and thus, the credentials of customer companies may not be well protected. Hence, as these third parties have access to the data and network of customer companies, their sensitive data and information can be at risk. Thus, such factors will contribute to the growth of the in-house segment of the automotive TIC market during the forecast period.
Based on vehicle type, the market has been segmented into passenger cars, and commercial vehicle. The passenger cars segment will account for the largest share of this segment.?Increasing SUV adoption due to their versatility and comfort, alongside the rising demand for electric vehicles (EVs) globally, are driving growth in the passenger cars segment of the market. SUVs offer multipurpose applications and spacious interiors, while EVs benefit from stringent emission regulations and government incentives. Sedans, hatchbacks, and SUVs constitute the passenger car categories, with SUVs like Toyota RAV4 and Ford Explorer leading the market. This trend is expected to propel the TIC market for passenger cars forward.
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Europe is estimated to contribute 36% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The increasing demand for lightweight and electric commercial vehicles in Europe is expected to drive the growth of the automotive industry. Additionally, the vehicles that are sold require periodic testing and inspection services to ensure their safety. This, in turn, fuels the demand for automotive TIC.
In addition, the market in Europe is driven by stringent government regulations and standards to maintain the quality of manufactured automotive products. Governments across various countries in Europe have introduced several regulations to enhance product safety and environmental health. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Apave Group: The company offers automotive testing, inspection, and certification services such as On board measurements on vehicles and customized tests, Mechanical tests, Hydraulic tests: burst tests on hoses and pipes, and Electromagnetic compatibility testing.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
British Standards Institution, DEKRA SE, DNV Group AS, Element Materials Technology Group Ltd., Eurofins Scientific SE, Intertek Group Plc, Mistras Group Inc., Nemko, SGS SA, TUV NORD AG, TUV Rheinland AG, TUV SUD AG, and UL Solutions Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market plays a crucial role in ensuring vehicles meet regulatory standards and are safe for use. This market involves testing and certifying various components such as hydrogen tanks, fuel cells, and electric vehicle (EV) chargers. Automotive TIC providers offer expertise and resources to conduct extensive testing and inspection, identifying potential hazards and ensuring regulatory compliance. They provide high-quality and credible services to build client trust, despite facing price competition. With the EV charging infrastructure being the fastest-growing segment, ensuring necessary standards and safety is paramount for the sustainability of the market. The global automotive TIC market continues to evolve with advancements in automotive technologies and changing regulatory landscapes, driving the need for reliable TIC services across the automotive sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.4% |
Market Growth 2024-2028 |
USD 6.48 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.53 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 36% |
Key countries |
US, China, Japan, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apave Group, Applus Services S.A, British Standards Institution, Bureau Veritas SA, DEKRA SE, DNV Group AS, Element Materials Technology Group Ltd., Eurofins Scientific SE, Intertek Group Plc, Mistras Group Inc., Nemko, SGS SA, TUV NORD AG, TUV Rheinland AG, TUV SUD AG, and UL Solutions Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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