Automotive TIC Market

[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. Auto 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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Scope of the Report

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
• 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.

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