The
automotive industry is transforming at a faster rate owing to the development
of cutting-edge technologies and stringent environmental regulatory policies.
This report on the automotive TIC market is a platform that explains
applications, market trends, and varieties of TIC services, ranging from
testing, inspection, and certification to auditing and quality control and
assurance. These services help automakers to improve their performance and
products; ensure the reliability and integrity of their products, processes,
assets, and systems; as well as mitigate
risks while bolstering their brands.
The global automotive
TIC market was valued at USD 16.9 billion in 2019 and is
expected to reach USD 22.1 billion by 2024, at a CAGR of 5.5%. Increasing
automobile production in emerging economies, growing inclination toward
outsourcing TIC services, rising focus of governments to impose strict
regulatory standards on the automotive industry, surging adoption of automotive
electronics to maintain passenger and vehicle safety, augmenting awareness
among consumers regarding product quality and safety, and increasing instances
of vehicle recalls due to component failures are the major factors propelling
the automotive TIC market growth.
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Among all service types, certification services are expected to
witness the highest CAGR in the automotive TIC market during the forecast
period. In the TIC ecosystem, certification services validate the test and
inspection results against a range of pre-specified standards set by
governments, international standardization institutions, or clients. In the
current scenario, certification services are widely used by manufacturers to
demonstrate if their products adhere to the government/regulatory mandates, as
well as to improve the marketability of their offerings.
Vehicle inspection services accounted for a
majority share of the overall automotive TIC market in 2018. The mandate of periodic technical inspection of vehicles by governments in
countries such as the US and Germany drives the market for vehicle inspection
services. DEKRA SE (Germany), a leader in vehicle
inspection, expanded its inspection business in Denmark by acquiring AL-SYN
ApS. This acquisition took place in
October 2018. AL-SYN is operating 6
inspection stations in the Danish regions of Jylland and Funen.
The automotive TIC market for outsourced services is expected
to grow at a higher CAGR during the forecast period. The market for outsourced services is likely to
witness a higher growth rate in the coming years owing to the growing focus of
automotive companies on getting TIC services from experts, increasing the efficiency of third-party service providers owing to their well-established facilities, along with time and cost
constraints that automotive companies have. Project deadlines and large orders
are a few of the other key reasons owing
to which automotive giants outsource their TIC requirements.
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Among all regions, the market
in APAC is expected to growth at the highest CAGR during the forecast period. The
market in APAC mainly constitutes major economies such as South Korea, Japan,
China, Singapore, India, and Australia, which are expected to register high
growth in the solid-state cooling market. Consumer awareness about the importance of
certification is on the rise. Additionally, the growing population in emerging
economies in APAC has accelerated the demand for passenger cars. The recent
economic meltdown in Europe acted as a catalyst for the already growing
automobile industry in APAC. Several European and American automobile
manufacturers, such as Mercedes Benz (Germany) and General Motors (US), shifted
their production plants to APAC. Owing to all these factors, automobile
manufacturing in China and India is growing, making APAC one of the largest
automotive markets with increasing sales and production of vehicles.
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