Automotive TIC Market Growth Forecast to 2031

 Meticulous Research^®—a leading global market research company, published a research report titled, ‘Automotive TIC Market by Service (Testing, Inspection, Certification), Sourcing (In-house, Outsourced), Supply Chain Service, Application (Vehicle Inspection, ADAS, OEM Testing, Durability Testing, Telematics, Others), Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the automotive testing, inspection, and certification (TIC) market is projected to reach $18.63 billion by 2031, at a CAGR of 3.6% from 2024 to 2031. The growth of this market is mainly driven by increasing automobile production in emerging economies, stringent regulations and standards in the automotive industry, and the consistently rising instances of vehicle recall due to component failure. However, dynamic regulations/standards across different regions and the lack of skilled personnel restrain the growth of the automotive TIC market. Furthermore, the growing adoption of electric vehicles, rising consumer awareness regarding product quality and safety, and the increasing adoption of connected devices in the automotive industry are generating growth opportunities for market players. However, concerns over the reliability of new TIC service providers are a major challenge impacting market growth.

The automotive testing, inspection, and certification market is segmented by service type, sourcing type, supply chain service, and application. The study also evaluates industry competitors and analyzes the market at the regional and country levels.

Based on service type, the automotive TIC market is broadly segmented into testing services, inspection services, and certification services. In 2024, the testing services segment is expected to account for the largest share of the automotive TIC market. The segment’s large share is attributed to the rising need to ensure the quality, safety, and performance of vehicles and automotive components and the growing focus on innovation in the automotive industry.

Furthermore, several players operating in this market are increasingly investing in research and development (R&D) to expand their offerings and offer advanced testing environments, contributing to the growth of this segment. For instance, in October 2022, SGS S.A (Switzerland) opened a new, larger state-of-the-art testing facility for both the automotive and consumer electronics sectors in India. The site includes laboratories dedicated to metallurgy, polymer, chemical, and environmental testing, along with dynamics, airbag deployment, and electromagnetic capability (EMC)/electromagnetic interference (EMI) testing.

However, the inspection services segment is expected to record the highest CAGR during the forecast period, mainly due to stringent regulations for vehicle inspection, growing consumer awareness about product quality and safety, and increasing government focus on automotive inspection services. Moreover, increasing investments by leading players in the automotive inspection services industry to advance their offerings contributes to the growth of this segment. For instance, in February 2021, DEKRA (Germany) opened its first vehicle inspection station in Mexico, offering comprehensive emission inspections for traditional and diesel fuel vehicles, including all state and municipal vehicles, as well as commercial vehicles.

Based on sourcing type, the automotive TIC market is broadly segmented into in-house services and outsourced services. In 2024, the in-house services segment is expected to account for the larger share of the automotive TIC market. The segment’s large market share can be attributed to the high visibility and degree of control over processes and improved delivery performance provided by in-house TIC.

However, the outsourced services segment is expected to record the higher CAGR during the forecast period. Outsourcing is a business practice in which services or business functions are provided by a third party. Companies often consider these services non-core and cannot rely solely on third-party accreditation capabilities. Outsourcing offers various benefits, such as access to skilled expertise, increased focus on core activities, better risk management, and improved in-house efficiency. Leading companies operating in this market are increasingly outsourcing inspection and testing to reduce costs since stringent regulations are making it progressively more expensive to conduct testing in-house.

Thus, the growth of this segment is attributed to third parties’ abundance of testing personnel and resources, the push toward outsourcing, the privatization of state-owned laboratories, and increasing technological challenges in the automotive sector.

Based on supply chain service, the automotive TIC market is broadly segmented into design, production, distribution, sales, and operation. In 2024, the operation segment is expected to account for the largest share of the automotive TIC market. The segment’s large market share can be attributed to the extensive use of these services in evaluating vehicle damage and tracking after-sales issues to reduce the risks associated with vehicle sales, delivery, and maintenance.

Automotive operation TIC services include extensive evaluation and testing of internal operations and processes to ensure optimum utilization of available resources and labor. Several OEMs are now turning to external service providers to identify shortcomings in their operations and improve their product quality with such inspections. TIC service providers often visit manufacturing and assembly units to check, inspect, and highlight bottlenecks in operations that degrade product quality.

However, the design segment is expected to record the highest CAGR during the forecast period. During every stage of design, development, and production, each vehicle component goes through several durability and quality checks to ensure that the final product is reliable and safe. The automotive industry is constantly focused on cost reduction, on-time deliveries, and profitability. Design service is the common denominator for all these challenges, with design validation becoming a mainstay. Thus, increasing concerns regarding the safety & quality of vehicles are expected to boost the demand for automotive design services during the forecast period.

Based on application, the automotive TIC market is broadly segmented into vehicle inspection services, electrical components & electronics, interior & exterior materials & components; electric vehicles, hybrid vehicles, and battery systems; automotive fuels, fluids, and lubricants; homologation testing, Advanced Driver Assistance System (ADAS) testing, durability testing, OEM testing, telematics, and other applications. In 2024, the vehicle inspection services segment is expected to account for the largest share of the automotive TIC market. The segment’s large market share can be attributed to the growing government focus on implementing legislation to reduce road accidents and the environmental impacts of non-compliant vehicles.

However, the telematics segment is expected to record the highest CAGR during the forecast period. The high growth of the segment is mainly driven by the increasing demand for fleet telematics, the integration of connected vehicle technologies, the adoption of wireless communications devices, and the integration of safety features into vehicles. In addition, increasing government regulations for vehicle safety, security, and tracking also support the growth of this segment.

Based on geography, the automotive TIC market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the automotive TIC market. Economic growth, growing per capita incomes, and investment opportunities due to favorable government policies are encouraging global automotive players to expand their presence in the APAC region. Furthermore, rising vehicle production, the increasing demand for autonomous & luxury vehicles, growing sales of electric cars, strict government regulations for vehicle safety & quality, and technological developments in the automotive sector are also driving market growth in APAC.

However, North America is expected to record the highest CAGR during the forecast period. The high growth of the automotive TIC market in North America is driven by the easy availability of automotive TIC services, the presence of major automotive manufacturers, and easy access to advanced services. Also, consistently rising vehicle production and increasing R&D expenditures in the automotive industry to improve labs and manufacturing facilities contribute to the high growth of this regional market. Also, the rising incidence of vehicle recalls is expected to support market growth in North America. For instance, in 2022, there were 932 vehicle safety recalls affecting over 30.8 million vehicles in the U.S.

Key Players:

The key players operating in the automotive TIC market include SGS S.A. (Switzerland), Bureau Veritas S.A. (France), Intertek Group Plc. (U.K.), Dekra SE (Germany), TÜV SÜD (Germany), TÜV Rheinland Ag Group (U.S.), DNV GL (Norway), British Standards Institution (BSI) (U.K.), Norges Elektriske Materiellkontroll (NEMKO) (Norway), Eurofins Scientific SE (Luxembourg), Applus+ (Spain), TÜV Nord Group (Germany), Mistras Group (U.S.), Lloyd’s Register Group Limited (U.K.), and Element Materials Technology Ltd. (U.K.).

Download Sample Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=4977

Key Questions Answered in the Report:

·         Which are the high-growth market segments based on service type, sourcing type, supply chain service, and application?

·         What was the historical market size for automotive TIC?

·         What are the market forecasts and estimates for the period 2024–2031?

·         What are the major drivers, restraints, opportunities, and challenges in the automotive TIC market?

·         Who are the major players, and what shares do they hold in the TIC market?

·         What is the competitive landscape like in the automotive TIC market?

·         What are the recent developments in the automotive TIC market?

·         What are the strategies adopted by the major players in the automotive TIC market?

·         What are the key geographic trends, and which are the high-growth countries?

·         Who are the local emerging players in the automotive TIC market, and how do they compete with the other players?

 

Contact Us:
Meticulous Research®
Email- sales@meticulousresearch.com
Contact Sales- +1-646-781-8004
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research