Top Trends in the Automotive TIC Market

 

Overview

Automotive testing, inspection, and certification (TIC) involve verifying vehicles and automotive components meet safety, quality, performance, and compliance requirements set by regulations, standards, and specifications. The worldwide market for automotive TIC is likely to rise significantly in the next years. The analysis predicts a CAGR of 3.94% from 2023 to 2033, representing a consistent and significant expansion during the period. This will increase the global automotive TIC market's value to USD 29.3 billion by 2033, up from USD 19.91 billion in 2023. The increasing use of electric and hybrid cars, along with government requirements for regular vehicle inspections, is leading to many chances for expansion in the automotive testing inspection and certification (TIC) market in the upcoming years.

 

Competitive Landscape

Applus+ is a world-renowned company that specializes in testing, inspection, and certification services. Its capable and experienced team of more than 23,000 individuals guarantees top-notch performance in various industries in over 70 countries. Some of Applus's famous brands in the U.S. include Applus+ RTD, Applus+ K2, Applus+ Velosi, Kiefner and Associates, X-R-I Testing, and JAN X-Ray Services. For instance, in October 2021, Applus+ acquired the Instrumentation Area and Metrology Laboratory from Mipel, S.A., which will be integrated into the Applus+ Laboratories division. The lab has advanced tools and amenities. Its staff is knowledgeable in providing services to industries like automotive, aeronautics, pharmaceuticals, government agencies, and hospitals that demand precise measurement instrument control. Applus+ acquired IMA Dresden, a reputable materials and structural testing laboratory, in May 2021. Additionally, it holds a dominant position in many key sectors of the European automotive, railway, aerospace & military, wind power, and medical devices industries.

 

Impact of Government Regulations and EV Expansion on the Asia Pacific Automotive TIC Market

Asia Pacific accounted for the largest share of the market in 2022, accounting for more than 32%. The region's growth is attributed to the expanding automotive industry associated with stringent government regulations and increasing demand for quality and safety testing services. China is expected to be the largest market in the region, owing to its rapid expansion of electric vehicles and the government's focus on raising automotive safety standards. Additionally, the market is expected to grow significantly in India and Japan due to increasing disposable income and growing demand for premium vehicles. In November 2022, SGS SA opened India's largest automotive quality testing laboratory in Pune. This facility offers a wide range of advanced testing services with large capacity. Equipped with state-of-the-art technology, the laboratory ensures fast and accurate results in compliance with JASO, ISO, CISPR, IEC Indian Standards, and global OEM specifications.

 

The report provides a summary of the global top trends and future prospects for the global automotive TIC market based on historical data sets (current trends, industry statistics, and emerging trends shaping the automotive TIC industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global automotive TIC trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions.  

 

Growth Factors and Emerging Trends in the Automotive TIC Industry

 

1. Increasing government attention towards enforcing stringent regulatory standards on the automotive sector will propel market expansion.

The global market is driven by a growing focus on vehicle safety and meeting strict regulatory standards. The automotive sector is experiencing a rise in demand for TIC services as consumers, regulatory bodies, and manufacturers are becoming more aware of security issues. Based on data from regulatory bodies and reports from the industry, the worldwide automotive industry has experienced a rise in vehicle recalls and safety concerns in recent times. Regulatory agencies worldwide have introduced more rigorous safety and environmental regulations for vehicles in light of this trend. In 2023, the European Union implemented new rules requiring enhanced safety features and emission reduction goals for every new vehicle sold within the region. Likewise, the U.S. Environmental Protection Agency (EPA) unveiled more stringent emission regulations for light-duty vehicles in 2024 to lower greenhouse gas emissions and enhance air quality.

 

1. The rising adoption of Internet of Things (IoT) technology is expected to drive market expansion.

The Internet of Things (IoT) is a network of computer devices that are networked together and share data in order to perform tasks without the need for human intervention. With the increasing prevalence of linked devices, mobile payments, and connected vehicles, software testing and inspection will become just as important as hardware testing and inspection for smart digital systems. For example, supplier audit programs, laboratory testing, and product inspections are carried out by Asia Inspection, a quality control and compliance company. Due to the digitization of Asia Inspection's user interface, an extensive report is delivered online the same day the inspection is finished, usually within 48 hours of scheduling an appointment.

 

Opportunities and Future Prospects in the Automotive TIC Industry

 

Rising interest in driverless cars and hydrogen as a substitute fuel.

The increasing emphasis on hydrogen fuel cell vehicles (FCVs) has resulted in a spike in the demand for TIC services concerning certification of hydrogen fuel technology. TIC providers guarantee the safety, efficiency, and adherence of hydrogen storage and distribution systems, fuel cell components, and refueling infrastructure. This involves the testing and certification of hydrogen tanks, fuel cells, and hydrogen fueling stations. Autonomous vehicles (AVs) introduce new technologies, parts, and systems that need thorough testing and examination to comply with safety standards and regulations. TIC services play a crucial role in evaluating the reliability and security of AV components such as batteries, charging systems, sensors, and control systems. TIC providers conduct thorough testing and examination to verify performance, identify possible dangers, and guarantee adherence to safety regulations, establishing consumer confidence in the safety of these vehicles.

 

List of Key Companies in the Automotive TIC Industry

• Dekra SE
• Intertek Group
• TUV Rhienland Group
• Applus Group
• TUV SUD Group
• TUV Nord
• Eurofins Group
• SGS Group
• Bureau Veritas
• Mistras Group
• Element Material Technology Ltd
• British Standards Institution
• DNV GL
• Others

 

Top 5 Key Players Profile in the Automotive TIC Industry

 

1. DEKRA

 

Headquarters:  Stuttgart, Germany

DEKRA has nearly a century of experience in the safety industry. One of the top expert organizations in the world, Deutscher Kraftfahrzeug-Überwachungs-Verein e.V. was established in Berlin in 1925. DEKRA e.V.'s subsidiary DEKRA SE oversees the Group's operational activities. DEKRA produced revenues of around EUR 3.8 billion in 2022. Almost 49,000 people are currently employed by the organization across almost 60 countries on five continents. They offer independent, skilled expert services that promote safety at home, at work, and on the road. These services include expert appraisals and car inspections, as well as claims services, building and industrial inspections, advice and training services, testing and certification of systems and products, including those used in the digital sphere, and temporary labor.                               

 

2. Intertek

 

Headquarters: London, United Kingdom

Intertek is a top provider of total quality assurance services to global industries. With a presence in over 100 countries, their extensive network of over 1,000 laboratories and offices provides unique and customized Assurance, Testing, Inspection, and Certification services for clients' operations and supply chains. Intertek is a company driven by a purpose to bring quality, safety, and sustainability to fruition.

 

3. TÜV Rheinland Group

 

Headquarters: Cologne, Germany

TÜV Rheinland represents both safety and quality across a wide range of industries and aspects of life. Established over 150 years ago, the company is a top testing service provider globally, employing over 20,870 people and generating approximately 2.3 billion euros in annual revenue. TÜV Rheinland's expert professionals conduct testing on technical systems and products globally, assist in advancing technology and business innovations, provide training in various professions, and certify management systems following international standards. By doing this, the independent experts build trust in products and processes within international value chains and the movement of products. TÜV Rheinland joined the United Nations Global Compact in 2006 to advance sustainability efforts and fight against corruption.

 

4. APPLUS+

 

Headquarters: Madrid, Madrid

Applus+ is a global frontrunner in the field of testing, inspection, and certification. They are a reliable ally, improving the quality and safety of clients' assets and structures, protecting their operations, and enhancing their environmental sustainability. Applus+ unique strategy, advanced skills, and dedicated staff of over 25,000 employees ensure outstanding performance in various industries across over 65 countries.

 

5. SGS

 

Headquarters: Geneva, Switzerland.

SGS is the top company in the world for testing, inspection, and certification services. SGS is acknowledged worldwide as the standard for sustainability, quality, and integrity. A network of 2,600 offices and laboratories worldwide is managed by 99,600 employees.

 

Recent Developments

 

• In March 2024, SGS, the top testing, inspection, and certification company globally, broadened its extensive fire safety, resistance, and flammability testing services with ISO/IEC 17025:2017 accreditation at its laboratory in Farmingdale, New York, USA. Its services will be available in the aviation, automotive, and maritime industries.

 

• In February 2024, SGS, a worldwide top provider of testing, inspection, and certification services, partnered with Jaguar Land Rover (JLR). This establishes an EMC testing facility in Chakan, Pune, India.

 

• In February 2024, China Automotive Certification Center Co., Ltd. is a company that specializes in certifying automotive products. (CCAC) launched the certification of the CCAC mark for electric vehicle charging equipment. This certification follows multiple standards such as GB/T 18487.1-2015 and GB/T 18487.2-2017, encompassing areas like general requirements, electromagnetic compatibility, and communication protocols. Numerous products and parts associated with E-Mobility need CCC Certification in order to be authorized for importing and selling in the Chinese market.

 

• In December 2023, UL Solutions inaugurated a battery development center in Pyeongtaek, the primary electric vehicle battery production center in South Korea. The Korea Advanced Battery Laboratory provides evaluation and analysis services that encompass key development phases such as concept and design validation, product testing, and certification. This partnership helps Korean electric charger makers achieve ENERGY STAR accreditation.

 

• In October 2023, DEKRA acquired the environmental testing labs from Weiss Technik Testing Services. This tactical decision expands the variety of environmental testing services offered by DEKRA, enhancing the company's product testing offerings in North America.

 

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

 

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