Automotive TIC Market Size (2024 - 2029)

The automotive TIC market is experiencing growth driven by the increasing adoption of electronic systems in vehicles, which necessitates regular testing to maintain efficiency. This demand is further fueled by the need to address component failures that can lead to significant costs and customer dissatisfaction. Despite challenges such as varying local regulations and the impact of COVID-19 on production, the market is poised for expansion due to the ongoing need for quality assurance and compliance in the automotive industry. The transition to electric vehicles also presents opportunities for sustained investment in R&D and TIC services, ensuring the market's resilience and growth potential.

Market Size of Automotive TIC Industry

automotive tic market share
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 7.30 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

automotive tic market major players

*Disclaimer: Major Players sorted in no particular order

Automotive TIC Market Analysis

The automotive TIC market is expected to register a CAGR of 7.3% during the forecast period 2021 - 2026. The increasing trend of the adoption of electronic systems in automobiles has led to the demand for testing equipment. With the adoption of electronic systems, special care needs to be taken to test them on a regular basis in order to maintain their efficiency.

  • TIC ensures the development of high-quality components and vehicles while supporting automotive suppliers in continuous improvements of existing technologies and new innovations to make mobility safer, secure, and more physically efficient. The increasing amount of cases for component failures in automobiles has led to increased adoption of TIC. The component failures result in a huge amount of cost to the company as well as lead to customer dissatisfaction.
  • Furthermore, the issues in maintaining the quality of the automobiles by the major vendors in the industry also lead to new opportunities for the market for automotive TIC services. For instance, in March 2021, Jaguar Land Rover announced that it is losing more than 100,000 sales annually due to quality issues, creating a bad image of the company. The company is planning to tackle the quality problem with a new business model
  • With globalization in trades and businesses, distinct local regulations and standards are some of the key barriers to the acceptance of products internationally. Automobile manufacturers are expected to invest significantly to establish in-house TIC facilities or coordinate with local TIC service providers to manufacture products which are compliant with the local regulatory norms.
  • The short-term impact of the COVID-19 on the automotive TIC market is that the automotive factories rely on significant human labor, and production has been scaled back, which affects the growth of the market. The long-term R&D and production-related TIC in the automotive industry may be significantly impacted due to a downturn in the global economic outlook. The lower vehicle demand and supply chain difficulties mean that production may take time to recover. However, the urgency to EV transition suggests R&D budgets and related TIC may be mostly protected in the long term.

Automotive TIC Industry Segmentation

The report provides a comprehensive analysis of the market segmented by the service type, vehicle type, and geography.

The automotive testing, certification, and knowledge services optimize quality and safety in accordance with national and international standards and regulations like TS 16949 and ISO 26262. The International standard-setting bodies composed of representatives from various national standards organizations define the different testing, inspection, and certification services in the international standard series ISO/IEC 17000:2004. 

By Service Type
Testing & Inspection
Certification
Others (Auditing, Consulting, and Training Services)
By Vehicle Type
Passenger
Commercial
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Automotive TIC Market Size Summary

The automotive TIC market is experiencing significant growth, driven by the increasing integration of electronic systems in vehicles, which necessitates regular testing to ensure efficiency and safety. This demand for testing, inspection, and certification services is further fueled by the need to address component failures that can lead to substantial costs and customer dissatisfaction. As automotive suppliers strive to enhance the quality of components and vehicles, TIC services play a crucial role in supporting continuous improvements and innovations. The globalization of trade introduces challenges with varying local regulations, prompting manufacturers to invest in TIC facilities or collaborate with local providers to ensure compliance. The COVID-19 pandemic has impacted the market by reducing production due to reliance on human labor, but the urgency of transitioning to electric vehicles is expected to safeguard R&D budgets and TIC services in the long term.

The market is characterized by a fragmented landscape with several major players, including T√úV S√úD, SGS Group, and DEKRA, who are actively expanding their service offerings to maintain competitiveness. The growth of electric vehicles presents new opportunities, with government regulations driving the need for TIC services, particularly in regions like North America. The trend towards digitalization and remote testing, accelerated by the pandemic, is gaining acceptance, further contributing to market expansion. Notable developments include DEKRA's recognition for interoperability certification of charging stations and T√úV S√úD's designation for cybersecurity and software updates in vehicles, highlighting the evolving nature of TIC services in the automotive industry.

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Automotive TIC Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Coverage on In-house vs Outsourced Automotive TIC Industry

    4. 1.4 Industry Policies and Regulations

    5. 1.5 Assessment of the Impact of COVID-19 on the Automotive TIC Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Type

      1. 2.1.1 Testing & Inspection

      2. 2.1.2 Certification

      3. 2.1.3 Others (Auditing, Consulting, and Training Services)

    2. 2.2 By Vehicle Type

      1. 2.2.1 Passenger

      2. 2.2.2 Commercial

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

Automotive TIC Market Size FAQs

The Automotive TIC Market is projected to register a CAGR of 7.30% during the forecast period (2024-2029)

TÜV SÜD, Applus Services, S.A, Dekra SE, SGS Group and Bureau Veritas Group are the major companies operating in the Automotive TIC Market.

Automotive TIC Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)