Battery TIC Market Size, Share & Trends

Battery Testing, Inspection, and Certification Market Size Share Industry Growth and Trends

[259 Pages Report] The battery testing, inspection, and certification market is projected to reach USD 36.7 billion by 2029 from USD 14.9 billion in 2024 at a CAGR of 19.6% during the forecast period. Increasing adoption of EVs and energy storage systems, rising enforcement of stringent standards to ensure battery safety, thriving portable electronics industry, and rapid advances in battery technology are some of the major factors driving the market growth globally. Moreover, opportunities such as rising investment in clean energy initiatives, increasing automation of testing and inspection processes using digital technologies, and growing need for rigorous testing in electric aircraft and medical devices to drive the growth of battery testing, inspection, and certification industry.

Battery Testing, Inspection, and Certification Market Forecast to 2029

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Battery Testing, Inspection, and Certification Market Trends & Dynamics

Driver: Increasing adoption of EVs and Energy Storage Systems

The upward push in electric vehicle (EV) adoption and the growing use of energy storage systems (ESS) for renewable energy integration drive the demand for rigorous testing and certification of high-performance batteries. According to the International Energy Agency (IEA), international electric vehicle sales accounted13.9 million in 2023, a significant  35% growth from 2022. This growth is over six times higher than the entire electric powered vehicle sales in 2018, highlighting the fast adoption of electric vehicles over the last 5 years.

The international EV marketplace is expanding due to technological advancements, environmental policies, and expanded customer recognition of sustainable practices. Many governments offer incentives to inspire the adoption of EVs, accelerating marketplace growth. ESS is important in storing energy from intermittent renewable assets, which include solar and wind. It helps keep grid stability and ensure a non-stop electricity deliver, mainly for the duration of top demand periods or outages.

Restraint: High initial capital investment

The battery testing, inspection, and certification market confronts significant challenges due to the large capital expenditure required. Setting up sophisticated testing facilities and purchasing innovative equipment requires a major financial investment, particularly for smaller TIC service providers. For example, setting up a battery testing laboratory with necessary equipment like battery cyclers, heat chambers, and safety testing tools might cost millions of dollars.

According to About: Energy, testing batteries for EVs is a rigorous procedure, with each testing program typically requiring roughly 1,000 channels for cell testing, which can cost up to USD 7.5 million for cell cycles alone. The channel demand might treble when testing at the module and pack levels, demonstrating the significant cost needed to verify the reliability and safety of EV batteries and highlighting the high capital costs associated with battery testing. This high capital requirement acts as a barrier to entry, limiting the market participation of smaller players and start-ups.

Opportunity: Rising investment in clean energy initiatives

The growing adoption of electric vehicles (EVs) worldwide and  rising use of energy storage systems (ESS) is driving the growth and expansion of battery testing, inspection, and certification market. The lithium-ion batteries are adapted due to their higher energy density and longer lifespan, which makes them ideal for EVs and ESS. As more EVs and ESS are adopted, the demand for testing and certification of these batteries to ensure they meet safety and performance standards is on the rise. This necessity is propelling the growth of the TIC market.

Challenge: Complexities associated with next-generation batteries

Rapid advancements in battery technologies are both fueling the expansion of the battery testing, inspection, and certification market and creating significant challenges. Cutting edge designs, materials, and chemical compositions are challenging established testing methods and necessitating the development of fresh approaches. The lack of standard testing procedures for modern battery technologies puts current testing frameworks and technological advancements at odds and highlights the need for adaptable and agile testing protocols.
The increased complexity of next-generation batteries, like solid-state and lithium-sulfur batteries, has made the battery testing, inspection, and certification industry more challenging. These state-of-the-art batteries have unique properties and modes of failure that necessitate specific testing techniques and equipment. To meet these challenges, large expenditures in R&D, specialized education, and new skills are required.

Battery Testing, Inspection, and Certification Market Ecosystem

The major players in the battery testing, inspection, and certification market with a significant global presence include UL LLC(US), SGS SA (Switzerland), Intertek Group plc (UK), Bureau Veritas (France), and DEKRA (Germany). These companies not only boast a comprehensive service portfolio but also have a strong geographic footprint.

Lead-Acid to register second highest CAGR during the forecast period.

One of the oldest types of rechargeable batteries, lead-acid has appreciated qualities in reliability, safety, and cost-effectiveness. They can also deliver very high surge currents after the delivery of their discharge at a stable voltage over some extended time. Compared to newer technologies such as lithium-ion, lead-acid batteries are more robust and less sensitive to overcharging. It consists of positive and negative plates, a separator, and an electrolyte. These batteries are designed to be simple to produce, cost-effective, and with a life expectancy of two to three years. Since these batteries give off high voltage, they find prominence in most standby power systems like in telecommunication equipment, cars, boats, forklifts, and UPS systems. The key players offering lead-acid batteries include Clarios, GS Yuasa International, and Power Sonic Corporation.

Applications range from automotive, for example, starter batteries for internal combustion engine vehicles, to backup power supplies such as uninterruptible power supplies  and industrial applications such as in forklifts and telecommunications. They are also used in renewable energy storage systems. Stationary lead–acid batteries IEC 60896 require certification for safety; valve regulated and vented standby UL 1989 certification.

Testing to account for the largest share of battery testing, inspection, and certification market during the forecast period.

It is necessary to test batteries to ensure that they are safe and also for the durability of the battery powering vehicles, appliances, and storage. These different tests range from electrical and mechanical tests to environmental tests, including performance checks against varied conditions like temperature, load, charge-discharge cycles, and so on. This gives the product reliability and helps consumers to be safe by detecting the problem at an early stage, thus making sure the battery is safe to use and meets the required performance. As penetration by EVs grows, accompanied by exponential development in new battery technologies, so does the call for all-rounded battery testing services.

Industrial Equipment to account for the largest share of battery testing, inspection, and certification  market during the forecast period.

Industrial equipment applications, including power tools, telecommunication systems, and ESS, represent a significant market for battery testing, inspection, and certification services. Most of these applications typically call for long-life and reliable batteries to reduce losses caused by operational conditioning of the system while minimizing time loss. However, the extremely harsh conditions to which these batteries can be exposed may lead to safety problems due to high temperatures and vibrations. This demands strong testing and certification procedures to prevent problems that could result in fire or explosion and guarantee safe performance.
Moreover, the demands of the Battery Testing, Inspection, and Certification Market are expected to grow significantly due to the cordless and mobile tools segment, integration of ESS into industrial applications, and the requirement for reliable sources of power.

Asia Pacific to account for the largest share during the forecast period.

The largest share of battery testing, inspection, and certification market is dominated by the Asia Pacific, as this region holds well-established battery manufacturers, such as  Contemporary Amperex Technology Co., Ltd. (CATL) (China) and BYD Company Ltd. (China), who have made a significant contribution to signing partnership agreements with peers in the industry. Additionally, government initiatives welcoming electric vehicles further accelerate the growth of the market. Here, there is a strong presence of the globally competitive battery manufacturers, with increasing investments from the governments supporting such progression.

Battery Testing, Inspection, and Certification Market by Region

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Top Companies Battery Testing, Inspection, and Certification Market - Key Market Players

The major players in the battery testing, inspection, and certification companies with a significant global presence include UL LLC(US), SGS SA (Switzerland), Intertek Group plc (UK), Bureau Veritas (France), and DEKRA (Germany). These players have adopted various organic and inorganic growth strategies such as service launches and developments, partnerships, collaborations, acquisitions, and joint ventures to strengthen their position in the battery testing, inspection, and certification market.

Scope of the Battery Testing, Inspection, and Certification Market Report

Battery Testing, Inspection, and Certification Market Highlights

The study segments the battery testing, inspection, and certification market based on standard and  certification type, battery type, service type, application, and market type at the regional and global level.

Recent Developments

• In September 2023, UL LLC launched a new safety service for lithium-ion battery-powered aviation GSE, meeting all requirements of UL 5840 standard. This service addresses the hazard of fire, electric shock, and explosion throughout the equipment; it will align with the drive by the aviation sector to replace traditional diesel-powered GSE with electric GSE in a campaign to attain the sustainable goal set on carbon reduction and end the use of diesel-driven vehicles.
• In April 2022, DEKRA introduced a new fast battery test service to corporate customers in Germany. This patented process, validated according to RWTH Aachen University and different vehicle manufacturers, gives in only fifteen minutes an SoH value of the traction batteries with a high accuracy.
• In April 2024, Modern Testing Services, (Dongguan) Limited, which is part of the Eurofins Scientific Toys & Hardlines laboratory network, is happy to introduce a new testing service that modern offers in support of children's products that contain button cell or coin batteries in compliance with 16 CFR 1263.
• In August 2023, TÜV Rheinland, in a joint venture with battery analytics specialist TWAICE, launched the Battery Quick Check GmbH, a certified battery test for battery electric vehicles. This service precisely evaluates the condition of traction batteries in used electric vehicles, providing a detailed State of Health report certified by TÜV Rheinland.

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