Automotive TIC Market Size & Share, By Vehicle Type (Passenger Cars, Commercial Vehicles), Service Type (Testing, Inspection, Certification), Sourcing Type (In-House, Outsourced), Application (Electrical Systems and Components, Telematics, Vehicle Inspection Services, Homologation Testing, Interior and Exterior Materials), Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Automotive TIC Market size surpassed USD 19.47 Billion in 2023 and is set to exceed USD 28.69 Billion by end of the year 2032, observing around 4.4% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 19.47 Billion
• CAGR (2024-2032): 4.4%
• Forecast Year Value (2032): USD 28.69 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

1. Increasing Stringency of Safety and Quality Regulations: The automotive industry is increasingly subject to stringent safety and quality regulations imposed by government authorities and industry organizations. This has led to a greater demand for TIC services to ensure compliance with these regulations, driving the growth of the automotive TIC market.

2. Technological Advancements in the Automotive Industry: The rapid advancement of technology in the automotive sector, such as the development of electric vehicles, autonomous driving systems, and connected car technologies, has created a need for specialized TIC services to validate the safety, performance, and reliability of these innovations.

3. Globalization of Automotive Supply Chain: The globalization of the automotive supply chain has led to a greater reliance on TIC services to ensure the quality and compliance of automotive components and products across different regions and markets, driving the growth of the automotive TIC market.

4. Increasing Consumer Awareness and Demand for Quality: Consumers are becoming more aware and conscious of the safety and quality aspects of their vehicles, leading to an increased demand for TIC services to verify the performance and safety of automotive products, presenting opportunities for growth in the automotive TIC market.

Report Scope

Report Coverage	Details
Segments Covered	Vehicle Type, Service Type, Sourcing Type, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	SGS S.A., Bureau Veritas, Intertek Group plc, Eurofins Scientific, DEKRA SE, TÜV SÜD AG, Applus+, MTS Systems.

Industry Restraints:

1. High Cost of TIC Services: The high cost associated with TIC services, including testing, inspection, and certification, can be a significant restraint for automotive manufacturers, especially for smaller companies with limited financial resources.

2. Lack of Standardization and Harmonization in Regulations: The lack of uniformity in safety and quality regulations across different regions and markets can pose challenges for automotive TIC providers in delivering consistent and cost-effective services, thereby restraining market growth.

3. Impact of COVID-19 Pandemic: The automotive TIC market has been affected by the COVID-19 pandemic, leading to disruptions in supply chains, reduced production volumes, and decreased demand for TIC services as automotive manufacturers face financial constraints and operational challenges. This has been a major restraint for the automotive TIC market in the short term.

Regional Forecast:

North America:

The automotive TIC market in North America is expected to experience steady growth due to the presence of a mature automotive industry, stringent regulations for vehicle safety and emissions, and technological advancements in the region. The United States and Canada are the key countries driving the growth of the automotive TIC market in North America. The increasing focus on vehicle performance, safety, and environmental standards is propelling the demand for automotive testing and inspection services in the region.

Asia Pacific:

The automotive TIC market in Asia Pacific is anticipated to witness significant growth, driven by the expanding automotive manufacturing sector, increasing vehicle production, and rising emphasis on quality and safety standards. China, Japan, and South Korea are the major contributors to the growth of the automotive TIC market in the region. The rapid industrialization, urbanization, and evolving regulatory landscape in these countries are expected to boost the demand for automotive TIC services.

Europe:

In Europe, the automotive TIC market is poised for substantial growth owing to the presence of well-established automotive manufacturers, stringent regulatory framework, and growing emphasis on vehicle safety and environmental sustainability. The United Kingdom, Germany, and France are the leading countries driving the growth of the automotive TIC market in Europe. The increasing adoption of electric vehicles, advancements in automotive technology, and the focus on reducing emissions are expected to drive the demand for automotive testing and inspection services in the region.

Segmentation Analysis:

In terms of segmentation, the global automotive tic market is analyzed on the basis of Vehicle Type, Service Type, Sourcing Type, Application.

Automotive TIC Market - Vehicle Type

The vehicle type segment in the automotive TIC market refers to the different types of vehicles that require testing, inspection, and certification services. This includes passenger cars, commercial vehicles, and off-highway vehicles such as agricultural and construction machinery. Each vehicle type has its own unique set of testing and certification requirements, and TIC companies must tailor their services to meet the specific needs of each vehicle type. As the automotive industry continues to evolve and innovate, the demand for TIC services for electric and autonomous vehicles is also on the rise, further expanding the scope of the vehicle type segment in the market.

Automotive TIC Market - Service Type

The service type segment in the automotive TIC market encompasses the various types of testing, inspection, and certification services that are offered to vehicle manufacturers, suppliers, and other stakeholders in the automotive industry. This includes services such as emissions testing, component testing, homologation and certification, vehicle performance testing, and more. TIC companies play a crucial role in ensuring that vehicles and their components meet regulatory standards, industry best practices, and consumer expectations for safety, performance, and quality. As technological advancements and regulatory changes continue to shape the automotive industry, the demand for specialized TIC services is expected to grow, driving further expansion of the service type segment in the market.

Automotive TIC Market - Sourcing Type

The sourcing type segment in the automotive TIC market refers to the different ways in which TIC services are sourced and provided to automotive industry stakeholders. This includes in-house TIC capabilities within automotive companies, outsourced TIC services from independent testing and certification companies, and collaborative partnerships between automotive companies and TIC providers. The sourcing type segment is influenced by factors such as cost, expertise, capacity, and the need for independent validation of vehicle and component performance. As automotive companies seek to optimize their TIC strategies and adapt to changing market dynamics, the sourcing type segment is likely to witness continued diversification and evolution.

Automotive TIC Market - Application

The application segment in the automotive TIC market encompasses the various specific areas within the automotive industry where testing, inspection, and certification services are required. This includes applications such as vehicle safety and emissions compliance, component validation, type approval for new vehicle models, production quality control, and aftermarket services. Each application area has its own unique set of TIC requirements and challenges, and TIC companies must tailor their services to meet the specific needs of automotive industry stakeholders. As the automotive industry continues to innovate and diversify, the application segment in the TIC market is expected to expand to encompass new areas such as electric and autonomous vehicle testing, cybersecurity, and connectivity.

Competitive Landscape:

The competitive landscape in the Automotive TIC (Testing, Inspection, and Certification) market is highly competitive, with companies striving to offer comprehensive and high-quality services to meet the stringent regulations and standards in the automotive industry. The market is driven by the increasing focus on safety, quality, and performance of automotive products, as well as the growing complexity of automotive technologies and the need for reliable testing and certification services. The key players in the Automotive TIC market are continually investing in advanced testing and inspection facilities, expanding their geographical presence, and developing new capabilities to enhance their market position.

Top Market Players:

1. SGS Group

2. Bureau Veritas

3. DEKRA

4. Intertek Group

5. TÜV SÜD

6. TÜV Rheinland

7. TV Nord

8. Applus+

9. Eurofins Scientific

10. Element Materials Technology