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The Automotive TIC services market is projected to reach US$ 38.89 billion by 2031 from US$ 20.89 billion in 2022. The market is expected to grow at a CAGR of 7.8% duringthe forecast period 2023-2031. The market has huge potential to grow in the upcoming years with a substantial growth rate. The market growth is supported by various factors such as rising automotive industry, increasing demand for quality and safety products, rising government regulations in the automotive industry, increasing instances of vehicle recall due to component failure among others. The rising adoption of electric vehicles has also strengthened the demand for TIC services.
Testing service has become an important part for automobile manufacturers while launching any product as it ensures that the product is in compliance with manufacturing standards and reduces the chances of unexpected component failure. Manufacturers also have to bear heavy losses in such instances. Testing service is expected to propel the automotive TIC services market with the highest CAGR in the forecast period. With the rising demand for quality and safety product, testing services has shown tremendous growth and is expected to propel the market in the forecast period.
Automotive Testing, Inspection & Certification Services (TIC service) ensures the safety and quality of auto-vehicle. TIC services play an important role for manufacturers and suppliers of auto vehicles. TIC services help automotive companies to meet certain criteria imposed by government regulatory bodies to ensure the efficiency of an auto vehicle. Automotive TIC services have various applications in vehicle inspection service, telematics, electric vehicle, and battery systems, electric and electronic auto part market among others.
COVID-19 outbreak has adversely affected the automotive industry. Decrease production of the vehicle in the coronavirus period has directly affected the automotive TIC services market globally. However, automotive companies in participation with the government have come out with several schemes and packages such as easy loan facilities, subsidy schemes on electric vehicles to counter the effect of Covid-19. Government initiatives to support the automotive industry is another factor propelling the growth of the automotive TIC services market.
The Global Automotive TIC Services market has been segmented based on service type, source type, application, supply chain services and region. These major segments are further categorized into sub-segments to study the market in detail.
By Supply Chain Services:
Geographically, the automotive TIC services market has been divided into North America, Asia Pacific, Europe, Middle East and Africa and South America. As per the studies, the Asia Pacific region is expected to grow at the fastest CAGR owing to high economic growth and rising population density. North America is expected to be the second-largest market of automotive TIC services market owing to increasing number of automobile manufacturers in North America. Europe region is also expected to show a substantial growth rate in the Automotive TIC Services Market.
The major players in the market are Applus Services S.A., Bureau Veritas, Dekra Se, Element Materials Technology, Eurofins Scientific, Lloyd’s Register Group Limited, Intertek Group PLC, TÜV NORD Group, TUV Rheinland AG Group and TUV SUD SGS among others. Leading players are constantly focusing on different strategies such as acquisitions and mergers that can increase their market hold by offering better services. For instance, in 2019, TUV SUD and AKKA (Engineering consulting company) collaborated to focus on the design and development of a fuel-efficient and low emission engine.
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