India Automotive Testing Market - 2023-2030

Market Overview

India Automotive Test Equipment Market size was worth US$ XX million in 2022 and is estimated to show significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 23.6% within the forecast period (2023-2030).

Automotive testing ensures the vehicle model's compliance with local, state and national laws to sell the vehicle in the market. National automotive standards are designed to ensure the quality of vehicles sold in the Indian market. Automotive testing evaluates the vehicle under testing against the benchmark of national standards and is issued certification accordingly.

Automobile testing requires producers to demonstrate that their product has been thoroughly evaluated. Testing covers a broad spectrum of vehicle features, from individual component analysis and emissions testing to the buzz, squeak, rattle tests, accident simulations and detailed automotive electronics testing.

Performance and endurance testing are also undertaken to ensure that the vehicle can work flawlessly in real-world conditions. Automotive testing involves putting complete vehicles, components and systems through various laboratory, virtual and real-world tests to ensure safety, reliability and compliance with safety laws.

Based on vertical, the passenger car segment is estimated to be the largest market for automotive testing in the forecast period. The segmental growth is due to rising customer purchasing power and demand for passenger automobiles in India. The sale volume of passenger vehicles far outstrips commercial vehicles, leading in the segmentation.

Market Dynamics

The growing use of electronic systems in the automotive industry drives the market share for automotive testing

Testing is a procedure used to ensure that manufactured products and component systems fit their intended use. Testing is carried out before, during and after manufacturing to assure product quality. In addition, the automotive industry's contribution to global warming is measured and inspected to regulate or minimize the damage caused by the industry.

The increasing usage of electronic systems in automobiles has increased the demand for testing services. Electronic systems require special attention to testing to maintain their efficiency regularly. For instance, the increased use of telematics control units (TCU), infotainment and other electronic components such as on-board diagnostics (OBD), electronic control unit (ECU) and anti-lock brake systems is predicted to grab about two-thirds of the Indian automotive electronics market (ABS)

Testing ensures the production of high-quality automobile components and supports automotive suppliers in refining and enhancing current technology to make transportation safer and more physically efficient.

Testing services and equipment utilization have increased as automobile component failures have increased. Component failures cost the company a lot of money and cause many issues. Furthermore, the difficulty of the industry's key suppliers in maintaining vehicle quality is projected to open new opportunities for the Indian automotive testing market in the forecast period. For instance, Jaguar Land Rover announced in March 2021 that it is losing well over 100,000 sales per year due to quality issues, resulting in a negative image. The corporation aims to address the quality issue with a new business strategy.

The lack of R&D facilities for automotive testing creates a huge challenging atmosphere for the growth of automotive testing

The India automotive testing market is heavily concentrated among a few major public and private players. The few public testing companies, such as the Automotive Research Association of India (ARAI), Vehicle Research & Development Establishment (VRDE) and Global Center of Automotive Technology (iCAT), are chronically underfunded and lack the latest high-tech equipment necessary to respond to the latest evolving trends in automotive testing.

Even private-sector testing companies do not conduct high-value research and development on the scale seen in developed automotive markets such as U.S. and Germany. The value of R&D to automotive testing in India is very low, especially for a major automotive market. The lack of government and private sector investment compounds the problem. The Government of India launched the National Automotive Testing R&D Project (NATRiP) with a funding of US$ 276.76 Million (Rs. 37.27 Billion). In contrast, in 2019, U.S. government and private sector investment in automotive testing R&D totaled nearly US$ 23 Billion.

The lack of R&D facilities hampers innovation and prevents the adoption of the latest technologies in the market. The lack of R&D facilities for automotive testing is a key challenge to the growth of the Indian automotive testing market.

COVID-19 Impact Analysis

The India automotive testing market dropped in 2020 owing to COVID-19's impact. The Indian government imposed a strict lockdown in early March 2020 to curb the spread of COVID-19 in India. The automotive testing centers had to close or scale operations significantly to comply with the government directives.

The lockdown hampered the ongoing testing and created a backlog that burdened testing companies when the strict restrictions were lifted in June and July 2020. Testing continued at a slower pace when compared to pre-pandemic levels. The global supply chain disruptions caused by the COVID-19 pandemic have also caused problems in India. New and advanced testing equipment, nearly all imported from Europe, North America and China, was delayed due to production issues in their source countries and shipping delays. It has, in turn, affected the pace of automotive testing, even after lifting pandemic restrictions.

Most automotive testing undertaken during the second half of 2020 was mostly to cater to the pent-up demand from the lockdown. Shortened development cycles and heavy physical tests of prototype vehicles and vehicle components to ensure proper calibration are required to introduce new models in the competitive Indian market. The pandemic caused delays that disrupted major automotive manufacturers' plans to launch new and update existing models. Therefore, it has resulted in reduced business for automotive testing companies.

Segment Analysis

The India automotive testing market is segmented by type, product and vertical.

The automated test stand system is designed to meet the demands of the most difficult testing and development tasks and it can be expanded as needed to meet the needs of customers

The India automotive testing market is segmented into the type: autonomous and connected vehicles, automotive fluids, electrical components and electronics, electromobility / electric vehicles, materials and components - composites, plastics and metals, engine and gears, environmental testing, system testing, crash test and others. Engine and Gear dominate the market of the mentioned type. iCAT provides an automotive transmission engine test cell established to perform noise, vibration and harshness tests on 'Front and Rear Wheel Drive vehicles. The lab will also be able to test all driveline components and various transmission units for Noise, Vibration and Mechanical Performance.

SGS SA offers cutting-edge services to meet the most current engine performance testing requirements. The automated test stand system is designed to meet the demands of the most difficult testing and development tasks and can be expanded as needed to meet customers' needs. The six-engine test stands can test power up to 480 kW, torque up to 1,800 Nm and engine speed up to 20,000 1/min. Current measurement, Conditioning of the test bench and the media, Engine tests for gasoline, diesel and compressed natural gas and cold start tests up to -20°C.

The ARAI Kothrud emission laboratory offers Type Approval (TA), Conformity of Production (COP) and Development evaluation for Heavy Commercial Vehicle (HCV) engines and evaluation of alternative fuel vehicles/engines. The HCV emission test facility is a one-of-a-kind facility for developing tests for vehicle evaluation, mass emission, fuel consumption and oil & lubricant performance on trucks & buses.

Competitive Landscape

The India automotive testing market is highly competitive with local and global key players. The key players contributing to the market's growth are SGS SA, Automotive Test Systems, The Automotive Research Association of India (ARAI), URS Products and Testing Pvt. Limited, iCAT, TUV Rheinland, Embitel, Sigma Test & Research Centre, AVL List GmbH, DEKRA and others.

The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the automotive testing market.

For instance, on May 27, 2021, Automotive Test Systems inaugurated a new testing facility for electric vehicles in Bangalore, India. The new facility would offer various tests for e-axle, electric motors and EV batteries, important components of electric vehicles.

SGS SA

Overview: SGS SA is a global inspection, testing and certification company. The company is headquartered in Geneva, Switzerland and owns 2,600 offices globally with over 93,000 employees. The company deals with automotive, oil & gas, chemical sector, government institutions and minerals. The company deals with services associated with connectivity & products, digital solutions, health & nutrition, industries & environment, knowledge solutions, natural resources and sustainability solutions. The service portfolio is segmented into testing, inspection and certification, focusing on transforming a business into a simple, efficient and fast-paced one. The company generated US$ 5,977.79, primarily from blooming economies in Asia-Pacific.

Product Portfolio: Automotive Services: Vehicle Safety and Emission Inspections provide fleet owners with vehicle emission control solutions, such as vehicle emission inspection. The company's tests are good for locating and reducing vehicle exhaust emissions, sounds and visual annoyances that obstruct the normal operation of automobiles.

Engine Performance Testing provides numerous hi-tech services to meet the most stringent engine performance testing requirements.

Key Development

On February 4, 2019, SGS SA expanded and enhanced its automotive testing services by initiating airbag testing in its laboratory located in Gurgaon, India. National Accreditation Board accredits the respective facility for Testing and Calibration Laboratories (NABL) for ISO/IEC 17025 compliance.

Why Purchase the Report?

• Visualize the India automotive testing market segmentation by type, product and vertical, highlighting key commercial assets and players.
• Identify commercial opportunities in the automotive testing market by analyzing trends and co-development deals.
• Excel data sheet with thousands of India automotive testing market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The India automotive testing market report would provide approximately 39 market data tables, 46 figures and 200 pages.

Target Audience 2022

• Service Providers/ Buyers
• Residential
• Research Laboratory
• Restaurant Business
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• Distributors