Automotive TIC Market Size - By Service (Testing, Inspection, Certification), By Sourcing (In-House, Outsourced), By Vehicle (Passenger Cars, Commercial Vehicles), By Application & Forecast, 2024 – 2032

Automotive TIC Market Size

Automotive TIC Market size was valued at USD 21.2 billion in 2023 and is projected to grow at a CAGR of over 4.8% between 2024 and 2032. Stringent safety standards and regulations mandated by governments globally drive the growth of the market. As regulatory bodies enforce increasingly rigorous safety, quality, and environmental standards, automotive manufacturers must comply to ensure their vehicles meet legal requirements. This includes stringent testing for crashworthiness, emissions, and electronic system reliability.
 

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Compliance is mandatory for market entry, and non-compliance can result in penalties, recalls, or bans. Consequently, the demand for TIC services grows, as manufacturers rely on them to navigate complex regulations and gain necessary certifications. This regulatory landscape ensures consistent demand for testing, inspection, and certification services, fostering automotive TIC market expansion and driving continuous improvements in vehicle safety and quality.
 

Moreover, rising global automotive production propels the automotive TIC market by increasing the demand for testing, inspection, and certification services. As production volumes grow, manufacturers face heightened scrutiny to meet stringent safety, quality, and environmental standards. This necessitates rigorous TIC processes to ensure regulatory compliance and maintain high-quality standards across a larger number of vehicles and components.
 

Additionally, expanding automotive production requires ongoing testing and certification for new models and technologies, such as advanced driver assistance systems and electric vehicles. The growth in automotive production directly correlates with the increased demand for TIC services, driving market expansion and development.
 

For instance, based on insights released by the International Energy Agency (IEA) in April 2024, highlights the surge of the global electric fleet. The report forecasts global electric vehicle (EV) sales to reach approximately 17 million in 2024, underscoring a robust growth trend for the electric vehicle market. This projection marks a notable increase from the nearly 14 million electric cars sold in 2023, a year that set a record with a 35% sales rise. The data indicates a broader uptrend in the automotive sector, with rising vehicle production expected to further propel demand in the market.
 

High investment costs for advanced testing equipment and facilities present a significant barrier in the Automotive TIC market. Cutting-edge testing technologies, such as advanced driver-assistance systems (ADAS), telematics, and electric vehicle (EV) component testing, require substantial financial commitments. These high initial costs can deter small and medium-sized companies from entering the market, limiting competition and innovation.
 

Additionally, ongoing maintenance and upgrades to keep pace with technological advancements increase operational expenses. This financial burden can also impact pricing, as companies may pass costs onto clients, potentially reducing demand for TIC services. Consequently, the need for significant capital investment restricts market growth and expansion, especially in developing regions.
 

Automotive TIC Market Trends

Automotive TIC is witnessing significant technological advancements in connected car technologies & electric vehicles. Connected cars, equipped with advanced telematics, infotainment systems, and V2X communication, require rigorous testing and certification to ensure cybersecurity, data privacy, and seamless integration. Similarly, the rise of EVs introduces new components, such as batteries and power electronics, necessitating specialized testing for safety, efficiency, and regulatory compliance.
 

The increasing complexity and integration of these technologies create a demand for comprehensive TIC services to verify performance, safety, and interoperability. As automotive innovation accelerates, TIC services become critical in validating new technologies, ensuring quality standards, and meeting evolving regulatory requirements, thereby driving market growth.
 

For instance, in October 2023, Jaguar Land Rover (JLR) inaugurated a new electric vehicle (EV) test facility in Whitley, England, as part of its strategic push towards electrification. This move is aimed at enhancing the company's capabilities to develop and test new electric models more efficiently. JLR plans to invest £15 billion (approximately $19 billion) over the next five years to bolster its EV lineup, which includes launching nine luxury electric vehicles by 2030. By conducting EV trials on-site at the new facility, JLR aims to reduce the costs associated with shipping prototype vehicles around the globe for testing.
 

Automotive TIC Market Analysis

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Based on sourcing, the market is segmented into in-house and outsourced. In 2023, the outsourced segment accounted for a market share of over 67% and is expected to exceed USD 22 billion by 2032. Outsourced services dominate the automotive TIC market due to the increasing complexity of automotive technologies and stringent regulatory requirements. Automotive companies often lack the specialized expertise and infrastructure needed for comprehensive testing, inspection, and certification, making it cost-effective to engage third-party experts. Outsourced TIC providers offer a broader range of services and the latest testing technologies, ensuring compliance with global standards.
 

Additionally, these providers can quickly adapt to regulatory changes and market demands, offering a more efficient and flexible solution compared to in-house capabilities. This allows automotive companies to focus on their core activities while ensuring quality and meeting safety standards.
 

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Based on vehicles, the market is divided into passenger cars and commercial vehicles. The passenger cars segment held around 65% market share in 2023. The passenger cars segment leads the automotive TIC market, driven by its substantial share of the global vehicle fleet, which increases the demand for TIC services.
 

Additionally, stringent safety and emissions regulations worldwide necessitate thorough testing and certification for compliance. Further, the complexity of modern passenger cars, equipped with advanced technologies such as ADAS and telematics, requires specialized testing and inspection. Rising consumer awareness about vehicle safety and quality further boosts the demand for TIC services. Moreover, the growing adoption of electric vehicles (EVs) and the need for certification of new components enhance the passenger cars TIC market dominance.
 

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Asia Pacific region accounted for an automotive TIC market share of over 42% in 2023 and is expected to exceed USD 14.3 billion by 2032. This region, home to automotive giants such as China, Japan, South Korea, and India, significantly influences the market. Rapid urbanization and rising disposable incomes have increased vehicle ownership, driving the demand for TIC services.
 

Additionally, government-enforced safety and emission regulations, particularly in China and India, further stimulate market growth. Further, the growing adoption of electric vehicles (EVs) and advancements in automotive technologies, such as ADAS and connected cars, create new opportunities for testing, inspection, and certification services. The presence of key automotive players and evolving consumer preferences also contribute to the market's expansion.
 

Moreover, stringent safety and environmental regulations, particularly in the United States and Canada, drive the automotive TIC market in North America. The region's mature automotive industry, known for its focus on innovation and quality, fuels the demand for comprehensive testing and certification services. The increasing adoption of electric vehicles (EVs) and advanced driver-assistance systems (ADAS) further underscores the need for specialized TIC services. Additionally, heightened consumer awareness regarding vehicle safety and performance, along with the presence of leading TIC service providers, strengthens the market's growth in North America.
 

Furthermore, Europe's automotive TIC services market thrives, due to its robust automotive industry, particularly in Germany, France, and the UK. The region's stringent regulations, such as the European Union's Euro 6/VI standards and the General Safety Regulation, necessitate comprehensive TIC services. As Europe shifts towards electric vehicles (EVs) and connected cars, the demand for specialized testing in electric systems and ADAS increases. The focus on sustainability and vehicle safety further drives the need for TIC services in the region.
 

The automotive TIC market in Latin America is experiencing growth driven by increased automotive production, enhanced safety standards, and a higher demand for vehicle inspections and emissions testing. Brazil and Mexico are key contributors to this growth. In the Middle East and Africa (MEA), market expansion is supported by the growing automotive sectors, government regulations, and a focus on safety and quality compliance. Rising demand for vehicle and component testing services is expected to create lucrative opportunities in the GCC countries and South Africa.
 

Automotive TIC Market Share

Eurofins Scientific, SGS Group, and DEKRA SE held a significant market share of over 6.2% in 2023. Eurofins Scientific is actively expanding its automotive testing, inspection, and certification (TIC) services through strategic acquisitions, bolstering its technological capabilities, and utilizing its extensive laboratory network. The company primarily delivers comprehensive testing services for automotive materials, components, and emissions. This emphasis ensures adherence to international standards while fostering innovation in automotive safety and performance.
 

SGS Group is prioritizing the integration of cutting-edge digital solutions and data analytics in their TIC services tailored for the automotive sector. The company aims to boost efficiency and precision in testing and inspection procedures. Furthermore, SGS is collaborating with automotive manufacturers on R&D initiatives and expanding its global presence to meet the surging demand for automotive quality and safety assurance.
 

DEKRA SE is channelling investments into state-of-the-art testing facilities, with a particular focus on bolstering its prowess in automotive cybersecurity and electric vehicle technologies. The company's commitment is evident in its provision of end-to-end TIC services, spanning from initial design validation to the certification of the final product. DEKRA is also actively participating in international standardization endeavours, aiming to establish uniform automotive safety and performance benchmarks worldwide.
 

Automotive TIC Market Companies

Major players operating in the automotive TIC industry are:

• Eurofins Scientific
• SGS Group
• DEKRA SE
• Bureau Veritas
• Applus+
• UL LLC (Underwriters Laboratories)
• TÜV Rheinland Group
• Intertek Group plc
• Element Materials Technology
• TÜV SÜD Group
   

Automotive TIC Industry News

• In June 2024, UL Solutions announced plans to construct an advanced automotive and battery testing center in Pyeongtaek, Gyeonggi-do, Korea. This facility aims to expand UL's existing battery testing capabilities and introduce new testing services, including electric vehicle (EV) charger testing. The center will cater to the growing needs of clients in the Asia Pacific region, enhancing safety and performance evaluations for the automotive and battery sectors.
   
• In June 2024, Johnson Electric and EUtech relocated their test stands to a new European testing center. This strategic move is part of their ongoing collaboration to enhance testing capabilities for automotive applications. The new center is expected to provide advanced testing solutions and prototypes, thereby improving the efficiency and effectiveness of its engineering and support services in the automotive sector.
   

The automotive TIC market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Service

• Testing
• Inspection
• Certification
• Others

Market, By Sourcing

• In-house
• Outsourced

Market, By Vehicle

• Passenger cars
• Commercial vehicles

Market, By Application

• Vehicle inspection
• Emission testing
• Component testing
• Telematics
• ADAS
• Homologation testing
• Fuels, fluids and lubricants
• Electric systems and components
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA