PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1419058
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1419058
Automotive TIC Market size was valued at USD 17,430.4 Million in 2022, expanding at a CAGR of 4.2% from 2023 to 2030.
Automotive TIC (Testing, Inspection, and Certification) involves a range of services that guarantee compliance, safety, quality, and performance of automotive products, parts, and procedures. It covers extensive testing, verification, and certification processes across the automotive supply chain to ensure adherence to regulatory standards and meet customer expectations. Ultimately, this builds trust and facilitates market access for automotive manufacturers and suppliers.
The industry's growth is propelled by the increasing intricacy of automotive technologies, including electronic systems and advanced materials, requiring thorough safety and reliability testing. Governments worldwide are enforcing strict regulations concerning automotive safety and emissions and using testing, inspection, and certification (TIC) services to ensure compliance. The growing global demand for electric vehicles (EVs) is leading to environmental concerns and increased government investment, necessitating specialized TIC services due to the unique safety and performance considerations of EVs. Furthermore, the rise of linked cars and self-sufficient driving innovation, reliant on announcement networks and innovative sensors, underscores the crucial role of TIC companies in validating their safety and performance.
The Global Automotive TIC Market is segmented on the basis of Service Type, Sourcing Type, Application, and Region.
The market is divided into three categories based on Service Type: Testing, Inspection and Certification. The testing segment dominated the global revenue in 2022. Its growth is primarily driven by its pivotal role in ensuring the safety and quality of automotive products. Various safety standards apply to vehicles, necessitating via testing to identify and rectify potential defects. Consumer need for high-quality automobiles further emphasizes the importance of testing in meeting presentation expectations. The rising complexity of automotive technologies, such as advanced driver-assistance systems (ADAS), autonomous driving features, and electric vehicles, requires specialized testing capabilities to comprehensively assess and ensure product quality and safety.
The market is divided into two categories based on Sourcing Type: In-house and outsourced. The in-house segment held the market lead in 2022 due to its on-site availability, allowing immediate access to testing facilities and personnel for decision-making. In-house testing offers businesses the flexibility to hire and train specialized testing employees directly, safeguarding a highly capable workforce tailored to specific needs. Therefore, businesses can create personalized testing actions aligned with unique invention supplies. For example, in October 2023, Volvo Car Corporation inaugurated a new software testing center in Sweden to enhance its integrated software testing capabilities. This investment enables Volvo Car Corporation to focus significantly on software development, with the center dedicated to testing various software components like infotainment systems, driver assistance systems, and autonomous driving systems.
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Within the automotive TIC market, companies adopt various strategies to navigate the intricacies of the industry. These strategies encompass substantial investments in cutting-edge technologies such as automation, artificial intelligence, and IoT, aimed at improving the efficiency of testing and inspection processes while upholding rigorous quality standards. Moreover, companies concentrate on broadening their service portfolios, customizing their offerings to cater to emerging automotive sectors like electric vehicles (EVs) and autonomous vehicles. Collaborations, partnerships, and acquisitions serve as crucial tools for expanding global reach, enabling companies to offer localized expertise and address specific regulatory needs in different regions. Furthermore, there's a noticeable shift towards sustainability initiatives, involving environmentally friendly testing methods and certifications, aligning with the automotive industry's growing emphasis on sustainable practices.
Both established industry players and startups stand poised to seize opportunities and gain a competitive edge in the swiftly evolving and expanding automotive TIC market. Established companies leverage their industry experience by investing in research and development, expanding their service range, and pursuing strategic partnerships. Meanwhile, startups capitalize on their agility by focusing on niche markets, introducing innovative solutions, embracing digital transformation, and seeking strategic collaborations to set themselves apart and thrive in this evolving landscape.
In June 2023, Element Materials Technology, a leading global provider of TIC services, acquired NCT CO., LTD., a battery testing company based in South Korea. This acquisition not only bolsters Element Materials Technology's presence in Asia but also secures unique capabilities in destructive battery testing, benefiting its connected technologies business in the region.
The scope of this report covers the market by its major segments, which include as follows: