Acumen research and consulting estimates that the global automotive TIC market is anticipated to reach market size of around US$ 25,000 Mn by 2027 and is anticipated to grow at a CAGR of around 6% in terms of revenue during the forecast period 2020 – 2027.
The performance of the car manufacturers and suppliers is driven by the testing, inspection, and certification (TIC). Safety and quality are increasingly a key driver of market growth. The automotive industry is also expected to follow strict requirements to comply with national and international health regulations and mandates. The increased development of new and hybrid electric vehicles offers the players in the automotive TIC market is a lucrative opportunity during the projected period.
TIC promotes the production of high-quality parts of vehicles and provides vehicle industries with continuous creativity and enhancement of advanced technology to improve the health, protection and physical performance of mobility. The rising use of electronic devices in cars has contributed to demand for test equipment. Special caution should be taken in the implementation of computer devices to test them in order to ensure their usefulness on a daily basis. The increasing number of cases of vehicle device failures has contributed to increased TIC acceptance. The defects in products incur immense costs and lead to the unhappiness of the consumer. In order to take TIC, professional training is needed to perform, understand the algorithms and to implement the TIC, it also includes a specific infrastructure.
In the US, the laws regulating automobile inspection are state-dependent. Some states like Delaware, District of Columbia, North Carolina and Hawaii require a yearly inspection of commercial vehicles and cars and a biennial inspection of passenger vehicles for testing the roadworthiness and safety of road vehicles. In order to provide road protection and comply with traffic regulations, the Land Transport Department has mandated all licensed vehicles to be regularly screened and inspected. For starters, passenger cars must be checked two years after registration in the US, and commercial vehicles must undergo an annual inspection after registration of the vehicle. In the headquarters for TIC, companies are mainly in mainly APAC and the European countries where they generate their revenues. There are about 200 automobile facilities throughout the EU, according to a European Commission Report (2018). In recent years, players in European markets have seen a decline in their sales due to increased demand from emerging countries such as Brazil, Russia, India and China, as well as Europe's financial crisis. The market observed during the forecast period is projected to be guided by steady advances in vehicle by car, vehicle by infrastructure and in-vehicle entertainment technology. Owing to the involvement of leading automobile firms such as Robert Bosch GmbH, Volkswagen AG, Germany, and Daimler AG (Germany), Europe is an important center for the automotive industry. In developing Asia Pacific economies, a number of economically advanced countries have their production units, particularly in China and India. These units are required by globally agreed requirements to produce their goods. Asia Pacific domestic markets are growing rapidly because of the middle-class population's increasing per capita income in these countries.
Major players included in this report are Bureau Veritas, DEKRA, MISTRAS Group, Inc., TUV SUD, DNV GL, Intertek Group, TUV Rheinland, ALS Limited, Applus+, TUV NORD GROUP, and others. Applus+ mainly provides services such as registration, engineering, inspection, testing, and technical assistance to various industries. The company's Applus+ Automotive and Applus+ IDIADA business segments play a critical role in the automotive TIC market. A few of the significant factors driving the company's growth in the sector are the introduction of regulatory inspection programs by emerging countries and the insistence of strictly inspection laws in US, coupled with the increasing number of vehicles and the high frequency of inspection services requested by their owners in the EU. Applus+ is present in over 70 countries and has 350 offices and laboratories globally. The company aspires to lead in each of its business segments by making high-return strategic investments. Strategic acquisitions and contracts are the major strategies adopted by the company to enhance its brand name and reputation.
The global automotive TIC market is segmented as below:
Automotive TIC Market By Service Type
Automotive TIC Market By Sourcing Type
Automotive TIC Market By Application
Electrical Systems and Components
Vehicle Inspection Services
Interior & Exterior Materials
Automotive TIC Market By Geography
Middle East & Africa
The market value of automotive TIC is anticipated to be around US$ 25,000 Mn in 2027.
It is anticipated to grow around 6% CAGR amid the forecast period.2020-2027
North America held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
Raising awareness about safety among consumersis expected to drive the growth of the automotive TIC market.
Varying regulations and standards across regions is a major factor expected to restraint the growth of the market.
The key players operated in the automotive TIC market are Bureau Veritas, DEKRA, MISTRAS Group, Inc., TUV SUD, DNV GL, Intertek Group, TUV Rheinland, ALS Limited, Applus+, TUV NORD GROUP, and others