Automotive TIC Market Size, Share, Growth, And Industry Analysis by Type (Testing Services, Inspection Services, Certification Services, Other Services, ) by Application (Vehicle Inspection Services, Telematics, Electrical Systems and Components) Forecast From 2025 To 2033

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AUTOMOTIVE TIC MARKET OVERVIEW

The global Automotive TIC Market size was valued at USD 19.17 billion in 2024 and is expected to reach USD 30.663 billion by 2033, growing at a CAGR of about 5.36% from 2024 to 2033.

In Automotive Testing, Inspection and Certification (TIC), tests and certifications are conducted to see if vehicles and their components follow the required guidelines and are safe. Some of the tasks include testing for accidents, emissions and safety, inspecting factories and certifying the products. TIC has become key in keeping consumer confidence while ensuring that national and international electric, autonomous and connected car regulations are met as complexity rises in those types of vehicles.

Stricter safety rules worldwide, more awareness among consumers concerning vehicle safety and quick technological changes in automobiles are the key drivers of the industry. Because of new trends including EV adoption, software-defined vehicles and smart mobility, TIC roles have become broader. More and more, TIC providers from third parties work with equipment companies to make testing easier, reduce the time products take to be available and help advance new technologies while ensuring everything stays in line with guidelines.

GLOBAL CRISES IMPACTING AUTOMOTIVE TIC MARKET

COVID-19 IMPACT

Automotive TIC Industry Had a Negative Effect Due to Shutdown of Automotive Manufacturing Plants during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

In the early stages, lockdowns across the globe, problems with the transportation of parts and the holiday pause in auto factory operations caused a rapid fall in both production and sales of vehicles. This meant that fewer new vehicles and components were sent for testing and certification which lowered TIC’s business. Because of travel limits and social distancing rules, on-site inspections and audits become difficult, so some TIC companies were forced to put off or cancel their assessments.

Even so, the pandemic accelerated digital changes in the TIC industry. Virtual audits, digital documentation and remote inspection tools were widely used, so services could go on without interruption as workers and customers were restricted. As things improved in the industry, companies started to pay more attention to health, safety and reliable supply chains which increased the need for stronger TIC processes. The pandemic made it clear that TIC services should be flexible and quick to reshape with the automotive industry’s swift move toward electric, automated and smart technologies.

LATEST TRENDS

Automation to Enhance the Accuracy to Drive Market Growth

There have been notable developments in the market which has the potential to boost the automotive TIC market share. Digital change which includes more AI-based solutions, is happening in the TIC industry to address the difficult challenges of today’s vehicles, like electric and self-driving ones. Thanks to automation, these technologies help the automotive industry keep with safety and environmental laws, quicken certification which leads to an earlier introduction of new technologies in the market.

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AUTOMOTIVE TIC MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Testing Services, Inspection Services, and Certification Services.

• Testing Services: These services mean testing vehicles and their components under strict conditions to guarantee they comply with set requirements for performance and safety.
• Inspection Services: inspectors review vehicles, various parts or production processes to spot issues, guarantee standards are fulfilled and keep a high level of quality. Tests can be done by checking appearances, dimensions or with non-damaging methods while making or after a product is completed.
• Certification Services: Certification services ensure that processes, vehicles or components meet the standards set by governments or major organizations. It covers the issuing of important certificates that allow a product to be exported worldwide, for example the ISO, CE or E-mark certificates. 

By Application

• Vehicle Inspection Services: Periodic inspections are carried out in Vehicle Inspection Services to verify a vehicle’s roadworthiness, safety and if it passes the emission standards.
• Telematics: Telematics helps control vehicle fleets, check for issues from afar, offer insurance tailored to use and increases road safety via tracking and planning maintenance.
• Electrical Systems and Components: Testing and inspection of all the electrical infrastructure, wiring, sensors, ECUs and batteries in the vehicle are part of Electrical Systems and Components. 

MARKET DYNAMICS

Driving Factors

Rising Adoption of Autonomous Vehicles to Boost the Market

There are several elements inspiring the automotive TIC market growth. Electric cars and automated driving systems are bringing new difficulties to car design and safety. Because such vehicles have high-voltage electricity, sensitive batteries, advanced AI systems and sensors, there is a growing need for complete safety testing which increases demand for TIC services. Because customers are becoming more aware and companies can face reputation problems if their products are faulty, manufacturers are prioritizing producing items that are reliable and high-quality. For this reason, inspection and testing services are needed before, during and after production to minimise the risk of recalls.

Globalization of Automotive Supply Chains to Expand the Market

Making cars involves many countries now, requiring a constant need for standards and certifications to let them pass through different borders. TIC services are important for checking that companies follow international rules and trade regulations. Many OEMs are entrusting the administration of TIC activities to independent third parties which helps their products become more transparent, believable and accepted globally. Emerging markets are largely affected by this trend because their in-house testing capabilities can be very limited.

Restraining Factor

Lack of Harmonized Global Standards to Potentially Impede Market Growth

Compliance is difficult for global manufacturers since different regions have their own regulations. Without a standard, the same work has to be repeated and costs for testing and certification go up. Costly testing, inspection and certification are needed, especially when related to advanced electric or self-driving vehicles. Because of this major worry, small and medium-sized manufacturers are less willing to pay for third-party TIC services.

Growth of Electric and Autonomous Vehicles to Create Opportunity for the Product in the Market

Opportunity

As electric vehicles (EVs) and autonomous driving technologies grow more popular globally, there is a great chance for the Automotive TIC sector. Testers need to closely examine the battery, advanced driver-assistance systems (ADAS), AI-controlled systems and cybersecurity of these vehicles. With governments demanding increased safety and sustainability in these new vehicles, demand for specialized TIC services is going up. Changing requirements for EV infrastructure such as charging stations and energy storage, will add more certification and inspection duties.

Keeping Pace with Rapid Technological Advancements Could Be a Potential Challenge for Consumers

Challenge

Preparing for the fast changes in automotive technology such as those in software, vehicle-to-everything (V2X) links and OTA updates, will be crucial for Automotive TIC. They usually lack the flexibility to assess changes in the software when the car is being used and to guarantee compliance after a sale. This means providers of trading and clearing services have to update their systems and cooperate with regulators to keep up with changes rapidly.

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AUTOMOTIVE TIC MARKET REGIONAL INSIGHTS

• North America(U.S. COMPULSORY)

North America is the fastest-growing region in this market. The United States automotive TIC market has been growing exponentially owing to multiple reasons. In North America, the Automotive TIC market has been growing, mainly because of tough vehicle safety and emission regulations introduced by the NHTSA and EPA. The U.S. and Canada are putting a lot of effort into developing and certifying autonomous vehicles. Services related to electric vehicle batteries and charging systems are becoming more in demand in the region. Teamwork between OEMs and third-party TIC companies is rising to speed up the process of innovation. Besides, when rules are strictly enforced, manufacturers are more motivated to put emphasis on compliance and quality.

• Europe

The advanced Automotive TIC market in Europe is due to EU rules such as UNECE and Euro NCAP standards. Because the area leads in sustainable travel and eco-friendly transportation, a large number of electric and low-emission vehicle tests are required. Because so many global automotive OEMs operate in Ontario, companies are consistently interested in third-party certification and homologation. Concerns about vehicle cybersecurity and connected cars have led to broadening of TIC scope in Europe. AI and tools for remote inspection are having a big impact on the sector’s future here.

• Asia

Due to powerhouse manufacturers such as China, Japan and India, Asia Pacific leads the Automotive TIC industry in terms of growth. Rising number of electric vehicles and rules for more thorough safety checkups by the government are among the main reasons. China is especially working to obtain international certification as it looks to increase vehicle exports. Updating infrastructure and using more digital tools in TIC services are increasing efficiency.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Key industry players are shaping the automotive TIC marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the automotive TIC.

List of Top Automotive TIC Companies

• Element Materials Technology [U.K.]
• Eurofins Scientific [Luxembourg]
• RINA S.p.A. [Italy]
• Underwriters Laboratories [U.S.]
• SAI Global [Australia]

KEY INDUSTRY DEVELOPMENT

September 2023: Applus+ took significant strives ahead in the automotive TIC marketplace. They recently developed eReformas Digital Platform. To choose paint color, on the other hand, it could be something more earthly to the scenario to be painted. With reference to the eReformas, APPLUS+ digital platform for the vehicle modification inspections at the periodic technical inspection centers, we have considered the roots of the name with the idea of a revolution discouraging all workers. The platform employs AI for automated document analysis and verification, minimizing manual errors while optimizing workflow. In the Automotive TIC sector, this infancy should lead to quicker and more accurate compliance checks.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

 The automotive TIC with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the automotive TIC has a promising development since it constantly develops and expands its application.