Automotive TIC Market Vehicle Type (Passenger Cars, Commercial Vehicles), Service Type (Testing Services, Inspection Services, Certification Services), Sourcing Type (In-House, Outsourced), Application and Region - Global Forecast to 2028
[267 Pages Report] The global automotive TIC market is projected to grow from USD 17.7 billion in 2023 to USD 20.9 billion by 2028, registering a CAGR of 3.4%. The increasing complexity of automotive technologies and the stringent regulatory landscape have created a strong demand for TIC services in the automotive sector. TIC companies are vital in conducting thorough testing and inspection processes to ensure safety standards and regulations compliance. With the rise of new automotive technologies such as electric vehicles, connected cars, and advanced driver assistance systems, the need for TIC services has intensified. As the automotive industry continues to evolve and new technologies emerge, the automotive TIC market is poised to experience sustained growth as it provides essential services to ensure safety, compliance, and quality in the automotive ecosystem.
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Market Dynamics:
Driver: Rapid advancements in the automotive industry
With the rise in connected vehicle technologies, there is a growing focus on cybersecurity, interoperability testing, and over-the-air (OTA) updates, among others. TIC providers are incorporating comprehensive cybersecurity testing and certification to identify vulnerabilities and mitigate risks. TIC providers also test interoperability to ensure seamless communication and compatibility between different devices, platforms, and networks. TIC providers are involved in the testing and certifying OTA update processes to ensure their reliability, security, and effectiveness. ADAS technologies are evolving towards autonomous driving. TIC providers are focusing on testing and certifying vehicles' autonomous capabilities, including sensor accuracy, object detection, decision-making algorithms, and system performance under various driving conditions. TIC providers are involved in testing and certifying the integration of AI and machine learning models in ADAS systems to ensure accuracy, reliability, and safety. With the rise of electric vehicles, there is a focus on testing and certification of batteries, charging stations and infrastructure components, and EVs' efficiency and range optimization, among others.
Restraint: Lack of harmonization in TIC standards across different regions and markets
Variations in safety, emission, and fuel efficiency standards between the US and Europe require automotive companies to meet different regulatory requirements, making TIC services complex and necessitating personalized internal standards. TIC providers face the challenge of navigating and complying with their regions' local laws and regulations, which can impact their efficiency and operational processes. The disparity in regulatory standards between regions creates challenges for international acceptance of products and hinders market growth, leading to additional costs and conflicts between local and international standards.
Opportunity: Increasing demand for hydrogen as an alternate fuel and autonomous vehicles
The rising focus on hydrogen fuel cell vehicles (FCVs) has led to a surge in the need for TIC services related to hydrogen fuel technology certification. TIC providers ensure the safety, performance, and compliance of hydrogen storage and distribution systems, fuel cell components, and refueling infrastructure. This includes testing and certifying hydrogen tanks, fuel cells, and hydrogen fueling stations. Autonomous vehicles (AVs) bring forth novel technologies, components, and systems that require rigorous testing and inspection to adhere to safety standards and regulations. TIC services are essential in assessing the dependability and safety of AV components like batteries, charging systems, sensors, and control systems. TIC providers carry out extensive testing and inspection to validate performance, detect potential hazards, and ensure compliance with safety standards, instilling consumer assurance in the safety of these vehicles.
Challenge: Highly competitive market
Various automotive TIC providers offer a broad spectrum of testing, inspection, and certification services to cater to the diverse needs of the automotive industry. Managing and delivering multiple types of TIC services require extensive expertise, resources, and infrastructure. Maintaining a reputation for high-quality and credible services becomes crucial with numerous providers in the market. Providers must consistently demonstrate competence, accuracy, and compliance with industry standards to build client trust. The presence of multiple providers offering similar services can lead to price competition. Automotive TIC providers may face pressure to offer competitive pricing while still ensuring profitability and sustainability.
Market Ecosystem
Vehicle inspection services to be the largest market during the forecast period
TIC for vehicle inspection services (VIS) segment is estimated to hold the largest market size during the forecast period. Vehicle inspection services (VIS) are critical in assuring vehicle owners, buyers, and regulatory bodies regarding vehicle roadworthiness, quality, and compliance. They help identify potential safety hazards, mechanical issues, and regulatory violations, allowing for necessary repairs, maintenance, or remedial actions to be taken. Vehicle inspections are often required during the sale or purchase of used vehicles as part of periodic inspections for fleet management, compliance with emission standards, and vehicle registration purposes. By providing independent and unbiased assessments, vehicle inspection services contribute to maintaining road safety, protecting consumers, and ensuring regulatory compliance in the automotive industry. Remote inspections in vehicle inspection services also involve conducting inspections without requiring the vehicle to be physically present at an inspection facility. Enabled by digital technologies and communication channels, owners can provide documentation, images, and videos of the vehicle's condition, which are reviewed remotely by certified inspectors. The owner and inspector communicate through digital platforms like video calls or messaging apps. Remote inspections are particularly valuable for preliminary assessments, pre-purchase inspections, and consultation services, offering convenience and flexibility for both owners and inspectors.
TIC for EV Chargers to be the fastest-growing segment during the forecast period
As the demand for electric vehicles continues to rise, the need for a robust and reliable charging infrastructure becomes crucial. TIC providers play a significant role in ensuring EV chargers' safety, efficiency, and compatibility through thorough testing, inspection, and certification processes. With the increasing adoption of EVs globally, the automotive TIC market is witnessing a surge in demand for services specifically focused on EV charger testing and certification. TIC companies are responsible for evaluating EV chargers' performance, reliability, and compliance to ensure they meet the necessary standards and regulations. As the EV charging infrastructure expands and evolves to meet the growing demand, the automotive TIC market will experience substantial growth in EV charger testing and certification services, ensuring the safe and efficient operation of charging systems for electric vehicles.
Asia Pacific to be the largest and the fastest growing market by value during the forecast period
Asia Pacific is expected to be the largest and fastest-growing region during the forecast period. In the Asia Pacific region, several TIC providers operate to address the safety, emission regulations, and other certifications set by countries such as China, Japan, and India. These countries have established stringent regulations and standards to ensure the safety, quality, and environmental performance of automotive vehicles and components. TIC providers in the region play a crucial role in conducting safety inspections, emission testing, and certification services to ensure compliance with these regulations. They help automobile manufacturers and suppliers navigate the complex regulatory landscape and obtain the necessary certifications required for their products to enter these markets. By offering comprehensive TIC services, these providers contribute to enhancing road safety, minimizing environmental impact, and fostering consumer confidence in the automotive sector across the Asia Pacific region. Consumer awareness about the importance of certification is on the rise.
Additionally, the increasing population in emerging economies in Asia Pacific has accelerated the demand for passenger cars. The recent economic meltdown in Europe catalyzed the already growing automobile industry in Asia Pacific. Several European and American automobile manufacturers, such as Mercedes Benz (Germany) and General Motors (US), shifted their production plants to Asia Pacific. Owing to all these factors, automobile manufacturing in China and India is growing, making Asia Pacific one of the largest automotive markets with increasing sales and production. Improving lifestyles and a rising number of metro cities with a steadily growing population have played vital roles in increasing the production and sales of passenger cars in the Asia Pacific region. A few Asia Pacific countries, such as Japan and South Korea, have stringent safety regulations, and the demand for passenger cars is rising. Countries such as China, India, and Japan are estimated to come up with vehicle and road safety regulations owing to the growing population and increasing vehicle demand. The increasing number of accidents will drive the implementation of safety regulations.
Key Market Players
The automotive TIC market is dominated by DEKRA SE (Germany), TÜV SÜD (Germany), Applus+ (Spain), SGS Group (Switzerland), and TÜV Rheinland AG Group (Germany), among others. These companies provide automotive TIC services to global OEMs and Tier-1 manufacturers. These companies have set up testing facilities and offer best-in-class services to their customers.
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Report Metric |
Details |
|
Market Size Available for Years |
2023–2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
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Forecast Units |
Value (USD Million/Billion) |
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Segments Covered |
Vehicle Type, Service Type, Sourcing Type and Application |
|
Geographies Covered |
North America, Europe, Asia Pacific and Rest of the World |
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Companies Covered |
DEKRA SE (Germany), TÜV SÜD Group (Germany), Applus+ (Spain), SGS Group (Switzerland), TÜV Rheinland Group (Germany). |
This research report categorizes the automotive TIC market based on vehicle type, service type, sourcing type, application, and region.
Based on Vehicle Type:
- Passenger Cars
- Commercial Vehicles
Based on Service Type:
- Testing Services
- Inspection Services
- Certification Services
- Other Services
Based on Sourcing Type:
- In-House
- Outsourced
Based on Application:
- EV Batteries
- EV Chargers
- EV Motors
- Electric Systems and Components
- ADAS and Safety Systems
- Telematics and Connectivity
- Automotive Interior/Exterior Bodies
- Vehicle Inspection Services (VIS)
- Fuels, Fluids and Lubricants
- Homologation
- Others
Based on Region:
-
Asia Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
-
North America (NA)
- US
- Canada
- Mexico
-
Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
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Rest of the World
- MEA
- South America
Recent Developments
- In April 2023, TUV Rheinland updated its certification program for hydrogen to ensure the safety and reliability of hydrogen technology and infrastructure. The new certification program covers various aspects of the hydrogen value chain, including production, storage, transportation, and usage. It also addresses emerging topics such as the use of hydrogen in fuel cells for mobility applications. The updated program reflects the latest technological and regulatory developments in the hydrogen industry and is designed to help companies and organizations meet the growing demand for safe and sustainable hydrogen solutions.
- In March 2023, Applus+ launched eReformas, a digital platform that provides a more efficient and flexible inspection service for users of statutory vehicle inspection in Spain. Through the eReformas platform, customers can view and manage appointments, track the inspection process in real-time, receive alerts on their mobile devices, and even make online payments. Applus+ expects the eReformas platform to improve customer satisfaction and streamline the inspection process, ultimately resulting in safer vehicles on the road.
- In March 2023, SGS announced that it has signed an agreement to sell its Automotive Asset Assessment and Retail Network Services operations to Zurich-based asset management firm, Conzzeta AG. The agreement includes selling the business, assets, and employees and transferring certain liabilities. The deal is expected to close in the second quarter of 2023, subject to customary closing conditions.
- In November 2022, DEKRA has launched a cybersecurity certification program that covers all types of electric vehicle supply equipment (EVSE). The program is the first of its kind globally. It is based on well-known cybersecurity standards, such as ETSI EN 303 645 or IEC 62443, to help EVSE manufacturers ensure their products are equipped with appropriate security solutions against significant security threats.
- In November 2022, SGS announced its membership in the Automotive Electronics Council's (AEC) Technical Committee. The AEC is a leading forum for developing reliable, high-quality automotive electronic components standards. The collaboration with AEC will enable SGS to provide its customers with testing services for automotive electronic components that comply with AEC's high-quality standards.
- In May 2022, TÜV SÜD has developed a program to evaluate the sustainability of battery production in a pilot project with Microvast Holdings. Microvast Holdings is a leading supplier of battery technology for specialized and commercial vehicles. The sustainability assessment program by TÜV SÜD aims to assist manufacturers in developing more sustainable battery production processes, focusing on ecological, social, and economic aspects.
Frequently Asked Questions (FAQ):
What is the current size of the automotive TIC market?
The current size of the automotive TIC market is estimated at USD 17.7 billion in 2023.
Who are the winners in the automotive TIC market?
The automotive TIC market is dominated by DEKRA SE (Germany), TÜV SÜD Group (Germany), Applus+ (Spain), SGS Group (Switzerland), TÜV Rheinland Group (Germany), among others. These companies provide automotive TIC services to global OEMs and Tier-1 manufacturers. These companies have set up TIC infrastructure and offer best-in-class services to their customers.
Which region will have the fastest-growing market for the automotive TIC market?
Asia Pacific will be the fastest-growing region in the automotive TIC market due to the huge volume of investments and the high demand for safer and more convenient commercial and passenger transport vehicles.
What are the key technologies affecting the automotive TIC market?
The key technologies affecting the automotive TIC market are ADAS Data Analytics & cloud computing, Virtual Testing, digital twining and Simulation, Artificial intelligence (AI) & Internet of Things (IoT), Advanced Testing techniques and Equipment, Non-Destructive Testing (NDT) Techniques, TIC solutions for EV & ADAS components.
How does TIC providers interact with the automotive industry?
TIC providers work closely with automotive manufacturers to conduct comprehensive testing and ensure compliance with regulatory standards. TIC providers assist in obtaining certifications, verifying product quality and safety, and conducting supply chain audits to ensure ethical practices. They also offer consulting services and training programs to enhance industry knowledge and assist in implementing effective processes. Through these interactions, TIC providers contribute to the overall quality, compliance, and sustainability of the automotive industry.
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The study involved four major activities in estimating the current size of the automotive TIC market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down approach was employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used in estimating the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications (for example, publications of automobile OEMs), automotive component associations, American Automobile Association (AAA), European Alternative Fuels Observatory (EAFO), International Energy Agency (IEA), country-level automotive associations, automobile magazines, articles, directories, technical handbooks, World Economic Outlook, trade websites, technical articles, and databases (for example, Marklines and Factiva) were used to identify and collect information for an extensive commercial study of the automotive TIC market.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the automotive TIC market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (country-level government associations, trade associations, institutes, R&D centers, OEMs/vehicle manufacturers) and supply (component manufacturers, software providers) sides across four major regions, namely North America, Europe, Asia Pacific, and Rest of the World. 52% of the experts involved in primary interviews were from the demand side, while the remaining 48% were from the supply side.
Primary data was collected through questionnaires, emails, and telephonic interviews. Primary interviews were conducted from various departments within organizations, such as sales, operations, and administration, to provide a holistic viewpoint of the report. After interacting with industry participants, brief sessions were conducted with experienced independent consultants to reinforce the findings from the primaries. This, along with the in-house subject matter experts’ opinions, has led to the findings delineated in the rest of this report. Following is the breakdown of primary respondents:
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Market Size Estimation
The top-down approach was used to estimate and validate the size of the automotive TIC market. In this approach, the total market size was derived by considering the TIC spending of market players. After deriving the total market size, the market at the regional level was calculated by breaking down the global market share. The country-level market was derived by using a percentage split of automotive TIC services at the regional level. All country-level data was added to derive the global market by vehicle type, service type, and sourcing type. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s future supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
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Data Triangulation
After arriving at the overall size of the global market through the above-mentioned methodology, this market was split into several segments and subsegments. The data triangulation and market breakdown procedure were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact market value data for the key segments and subsegments. The extrapolated market data was triangulated by studying various macro indicators and regional trends from both the demand- and supply-side participants.
Market Definition
Automotive testing, inspection, and certification services are carried out to check the vehicle quality. Automotive TIC service providers must ensure that automakers and suppliers comply with the national and international standards by demonstrating high safety standards, sustainable quality, and operational excellence. In the automotive sector, various assembly line components (such as seats, seatbelts, airbags, batteries, doors, tires, mirrors, lights, anti-lock braking systems (ABS), engines, and wipers), as well as final products, need to conform to certain standards and regulations. Automotive TIC services offer quality and standardization checks that help automobile manufacturers to adhere to the rules and regulations. Automobile testing requires advanced capabilities and expertise to evaluate the performance of automobiles and shorten the delivery time of vehicles.
This report takes a closer look at the automotive TIC market, providing a holistic outlook on market dynamics, industry trends, and supply and demand. It aims to provide information regarding estimates and forecasts for the market segments. The report categorizes the automotive TIC market based on service type, sourcing type, application, and geography as well as forecasts the market size and analyzes the trends in the market.
List Of Key Stakeholders
- Raw material and testing equipment suppliers
- Research organizations
- Original equipment manufacturers (OEMs)
- Technology standards organizations, forums, alliances, and associations
- Technology investors
- Analysts and strategic business planners
- Government bodies, venture capitalists, and private equity firms
- End users curious to know more about automotive TIC services and the latest standards in the automotive TIC market
Report Objectives
- To segment the market and forecast its size, by value (USD million), based on vehicle type (passenger cars and commercial vehicles)
- To segment the market and forecast its size by value (USD million), based on service type (testing services, inspection services, certification services, other services)
- To segment the market and forecast its size, by value (USD million), based on sourcing type (in-house, outsourced)
- To segment the market and forecast its size, by value (USD million), based on application (battery testing, charger testing, motor testing, electrical systems and component testing, ADAS and safety testing, telematics and connectivity testing, interior and exterior materials and component testing, vehicle inspection services (VIS), homologation testing and others)
- To segment the market and forecast its size by value (USD million) based on region (Asia Pacific, Europe, North America)
- To analyze the technological developments impacting the automotive TIC market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze markets with respect to individual growth trends, future prospects, and contribution to the total market
- To study the following with respect to the market
- Value Chain Analysis
- Ecosystem
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Buying Criteria
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), new product developments, and other activities carried out by key industry participants
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with company-specific needs.
- Additional country-level breakdown by sourcing type (for specific countries not covered in the report, subject to data availability)
- Further breakdown by propulsion type (subject to data availability)
Company Information
- Profiles of additional market players (up to five)
Growth opportunities and latent adjacency in Automotive TIC Market