Industry Overview
The Automotive Industry's Testing, Inspection, And Certification (TIC) Market reached USD 19.8 billion in 2023, with a projected CAGR of 4.3% from 2025 to 2030. TIC testing ensures that manufactured products, components, and systems meet specific requirements.
Inspection and testing are the operating parts of quality control, which is the most critical factor for the survival of any manufacturing company. Quality control directly supports other factors such as cost, productivity, on-time delivery, and market share. The testing, inspection, and certification market report is composed of conformity assessment agencies, which provide services from audit and inspection to testing, verification, quality assurance, and certification.
The rising demand for high quality and safety such as anti-skid braking systems, electronic brake-force distribution (EBD), airbags, and emission control systems, such as catalytic converters using turbochargers, and exhaust gas recirculation (EGR) systems, etc. are the key drivers for the growth of the TIC market in the automotive industry. Moreover, the automotive industry is required to meet the mandated specific norms and have to comply with national and international safety regulations and standards, rising automobile production in developing economies, rising inclination of outsourcing testing, inspection, and certification services, mounting adoption of automotive electronics to offer passenger and vehicle safety, growing instances of vehicle recalls due to component failures are the factors attributed to the growth of TIC market in the automotive industry. The shift in trend towards digital inspection rather than physical vehicle inspection and predictive maintenance is anticipated to propel the growth of the global automotive TIC market during the forecast period 2025-2030.
The COVID-19 pandemic resulted in a short-term decline in demand and revenue in the first quarter of 2020 owing to the unavailability of the labor force and the temporary shutdown of factories. However, the mounting trend of digitalization in the automotive TIC market will help the TIC companies to focus on software solutions so as to conduct audits, damage assessments, and certifications.
Business organizations in the TIC market are intensifying IT infrastructures and developing business continuity plans, implying that the testing, inspection, and certification market are holding the substantial potential to bounce back from the COVID-19 outbreak. This is due to the fact that TIC services will enhance and protect brand reputation, verify products’ safety, and enables trade.
Market Segmentation
Insight by Sourcing Type
On the basis of sourcing type, the TIC market for the automotive industry is bifurcated into in-house and outsourced. Among the two segments, the in-house segment is anticipated to dominate the tic market for the automotive industry during the forecast period owing to increased visibility, complete control over the entire process in terms of technology, skilled personnel, and testing and measurement equipment, and improved delivery performance.
Insight by Service Type
On the basis of service type, the TIC market for the automotive industry is categorized into testing, inspection, certification, and others. The testing segment is anticipated to hold the largest share in the testing, inspection, and certification market in 2020 owing to the massive demand for safety and quality of products and mandatory standards from the regulatory authorities to provide safety, quality, and efficiency of products. There are certain areas such as automotive lighting solutions and components, connected car solutions, and material and reliability testing that require automotive testing in order to comply with specific standards and regulations. Moreover, the certification market is anticipated to have a high CAGR during the forecast period owing to mandatory regulatory requirements and improve marketability of the offerings.
Insight by Industry Vertical
Based on end-use industry, the TIC market for the automotive industry is divided into vehicle inspection services, electrical components and electronics, interior & exterior materials and components, electromobility/electric vehicles, automotive fuels, fluids, and lubricants, homologation testing, Advanced Driver Assistance Systems (ADAS) testing, durability testing, OEM testing, telematics, emission testing, acoustic testing, and others. Among these segments, the vehicle inspection services account for a significant share in the TIC market for the automotive industry as it monitors vehicle damage throughout the supply chain, assesses the cost of repair for damaged vehicles, offers safe and reliable vehicles, provides quality, efficiency, and safety, decreases the environmental impact of road traffic, cost, delivery lead-times. Furthermore, the growing focus of the government to implement legislation that helps to reduce road accidents and the environmental impact of non-compliant vehicles are further supporting the growth of the automotive TIC services market for vehicle inspection.
Global TIC Market for Automotive Industry Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 19.8 Billion
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Revenue Forecast in 2030
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U.S.D. xx.x Billion
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Growth Rate
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4.3%
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Segments Covered in the Report
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By Sourcing Type, By Service Type and By Industry Vertical
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and Rest of the World
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Industry Dynamics
Industry Trends
The TIC market for the automotive industry is characterized by various industrial trends such as growing investment in AR and VR, mounting adoption of connected devices and cloud-based technology, increasing mergers and acquisitions by the industry players, and sustained consolidation of suppliers leading to globalization.
Growth Drivers
The automotive industry's demand for Testing, Inspection, and Certification (TIC) services is expected to be driven by various factors. These include the rise in vehicle recalls caused by component failures, government regulations, industry standards, certification requirements, increased automotive production and technological advancements, environmental consciousness, and significant penalties for non-compliance. Additionally, manufacturing companies' focus on offering safe and high-quality products will improve customer loyalty and drive the need for interoperability testing for connected devices and the Internet of Things (IoT). The globalization of trade, the growth of disposable income in emerging economies, and the emergence of digital technologies will also contribute to the expansion of the TIC market in the automotive industry. Furthermore, the increasing adoption of automotive electronics for passenger and vehicle safety will further accelerate the growth of the automotive TIC market in the future.
Challenges
The testing, inspection, and certification market face certain challenges like trade wars and growth fluctuations, a huge investment for automation and installation of industrial safety systems, high cost of TIC owing to diverse standards and regulations globally, and a decrease in the sale of vehicles globally due to COVID-19 pandemic. Moreover, there are certainly more challenges faced by the automotive industry such as the long lead time required for overseas qualification tests, compliance to CSR, lack of testing facilities and skilled personnel may hamper the growth of the TIC market.
Opportunities
Testing, inspection, and certification is a massive market that provides lucrative opportunities in technologies such as AI, robotics, drones, big data analytics, next-generation automation, and cloud and cybersecurity. Moreover, there is a need to have a periodic technical inspection (PTI) of vehicles mandated by governments such as the US and Germany, rising number of electric and hybrid vehicle production, growing sales, and production of vehicles in developing economies will create opportunities for growth for the TIC market in the automotive industry.
Geographic Overview
Europe is anticipated to witness the largest market share in the TIC market for the automotive industry as many TIC companies have their headquarters in Europe and generate their revenues from PAC and European countries. Many European automotive OEMs such as Audi AG, Volkswagen are developing ADAS and self-driving cars resulting in mounting adoption of automotive testing services. Moreover, massive infrastructure advancement for electric vehicle charging stations in the region will propel the demand for inspection and certifications services.
Competitive Insight
Key players are focusing on mergers & acquisitions, product launch, expansion, generate new revenues, optimize the operational cost, and enhance service efficiencies via process upgrades. The industry players are taking the COVID-19 crisis as an opportunity to restructure and revisit their existing strategies, focus on new services and delivery models to access the growing demand for automation, remote service execution, and improved digitalization.
Bureau Veritas has launched a complete portfolio of services on Electric Vehicle Charging Stations (EVCS) which covers the full lifecycle—from design, construction, and commissioning to operations.
Applus+ Automotive division in the US won 4 contract extensions for statutory vehicle inspections. These contracts are reinforcing Applus+ as a strong player in the US market, proving its commitment to providing governments, manufacturers, and traders with the best solutions in improving vehicle safety and reducing harmful vehicle emissions.
Some of the key players operating in the TIC market in the automotive industry: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins Scientific, TUV Rheinland, Lloyd Register Group Limited, DEKRA SE, Applus+, and DNV GL.
The TIC Market for Automotive Industry report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Sourcing Type
- By Service Type
- Testing
- Inspection
- Certification
- By Industry Vertical
- Vehicle Inspection Services
- Electrical Components and Electronics
- Interior & Exterior Materials and Components
- Electro Mobility/Electric Vehicles
- Automotive Fuels, Fluids, and Lubricants
- Homologation Testing
- Advanced Driver Assistance Systems (ADAS) Testing
- Durability Testing
- OEM Testing
- Telematics
- Emission Testing
- Acoustic Testing
- Others
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
