Electric Vehicle Testing, Inspection, and Certification (TIC) Market Size - By Offering (Testing, Inspection, Certification), By Vehicle (Passenger vehicle, Commercial vehicle), By Sourcing (In-house, Outsourcing), By Application & Global Forecast, 2024 - 2032

Electric Vehicle Testing, Inspection, and Certification Market Size

Electric Vehicle Testing, Inspection, and Certification (TIC) Market size was valued at USD 3.2 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. As EV sales increase, the number of cars that require rigorous testing, inspection, and certification before entering the market grows tremendously. This leads to a broader consumer base for TIC services. Unlike simpler gasoline vehicles, EVs include complex battery systems, electric motors, and smart electronics. Each component requires specific testing to ensure proper functioning, safety, and performance.
 

For instance, in January 2024, Tesla's German plant produced 6,000 cars in a week for the first time setting a record. Currently, Tesla is awaiting approval on an application to double the plant's capacity to 1 million cars annually, this further amplifies the need for comprehensive solutions. With the continuous increase in the production of EVs globally, the EV testing, inspection, and certification (tic) market will simultaneously continue to grow.
 

The stringent government regulations are also one of the major drivers of growth for the EV TIC market. Governments across have implemented stronger rules on various aspects of EVs, including safety, pollution, battery performance, and security. To comply with these laws, manufacturers need to use these services to do strict testing and certification on their cars before market introduction. Along with this, stringent regulations serve to resolve public concerns about safety and regulations, which are significant obstacles to EV adoption. Independent testing and certification by TIC firms build trust and confidence in customers, boosting the market growth.
 

For instance, in January 2023, the EU proposed stricter safety standards for connected and automated vehicles. This proposal defines additional cybersecurity, data protection, and functional safety testing criteria for self-driving vehicles, opening prospects for specialist TIC services in these areas. These strict government regulations are the driving factor for the market growth.
 

The electric vehicle testing, inspection, and certification (TIC) market faces a major barrier and challenge because of its high testing costs, potentially slowing down market growth. High testing costs can have a substantial impact on smaller manufacturers and startups looking to enter the market. The initial cost necessary for thorough testing may constitute a barrier to entry, limiting industry diversification and innovation. If the testing costs continue to be high, the total expansion of the business may be suppressed, restricting its ability to assist the larger electric vehicle sector. Along with this, smaller companies and startups may struggle to obtain necessary testing services, creating an uneven playing field in the market.
 

Electric Vehicle Testing, Inspection, and Certification Market Trends

The electric vehicle testing, inspection, and certification (TIC) industry growth is driven by rapid technological advancements in the automotive industry. This creates opportunities for service provider companies to invest in R&D and offering specialized testing solutions. The integration of automation, artificial intelligence in the automotive sector, and advancements in data analytics enables the creation of more efficient and cost-effective testing solutions. This results in reduced testing time and costs for manufacturers, enhancing accessibility to EV TIC services and propelling industry growth.
 

For instance, in January 2024, Applus+ collaborated with Idiada, a renowned automotive testing facility, to provide comprehensive testing solutions for connected car features. This collaboration involves leveraging 5G technology and simulating real events to conduct thorough tests on communication, cybersecurity, and performance, thereby ensuring the reliability of these advanced automotive functionalities.
 

Electric Vehicle Testing, Inspection, and Certification Market Analysis

Based on offering, the testing segment held over 50% of the market share in 2023. The electric vehicle market is characterized by continuous innovation, with manufacturers focus on enhance battery efficiency, range, and overall performance. As new technologies and components are introduced, testing becomes essential to validate their functionality, reliability, and safety. The testing conducts comprehensive evaluations of components, ensuring that vehicle meet safety standards, have reliable battery performance, and adhere to safety norm.
 

Based on sourcing, the in-house segment recorded around 54% of the electric vehicle TIC market share in 2023. In-house sourcing approach allows companies to have greater control over the entire testing process, from design validation to performance testing, and ensures that vehicle aligns with industry standards. The in-house sourcing allows manufacturers to efficiently manage costs associated with testing and certification processes. While establishing testing facilities requires initial investment, it can lead to long-term cost savings. As the electric vehicle market experiences rapid expansion manufacturers are placing a heightened emphasis on testing and certification processes to guarantee the safety, reliability, and performance of the vehicles.
 

The Asia Pacific EV testing, inspection, and certification market accounted for 30% of the revenue share in 2023, with factors such as advanced infrastructure, supportive government policies, and a well-established automotive industry contributing to its dominance. The government bodies impose stringent safety rules requiring manufacturers to invest considerably in EV testing and certification to comply. Along with that, governments are committed to meeting aggressive decarbonization targets, resulting in market development for clean technologies including electric cars and increased demand for Asia Pacific TIC services.
 

Electric Vehicle Testing, Inspection, and Certification Market Share

SGS SA and Bureau Veritas dominate the market with around 10% market share. SGS SA invests heavily in specialized testing facilities outfitted with cutting-edge technology and technologies particularly designed for electric car testing. They also provide complete testing services that address safety, performance, dependability, and compliance with applicable standards and laws.
 

Bureau Veritas focuses on offering tailored solutions to meet the unique needs of vehicle manufacturers. Customized testing protocols, performance evaluations, and adherence to specific industry requirements enable the company to cater to the diverse range of vehicle and components. The major players also invest in equipment and methodologies, including advanced sensors, diagnostic tools, and data analytics, to conduct comprehensive assessments of vehicles, covering aspects such as battery performance, charging systems, and overall safety.
 

Electric Vehicle Testing, Inspection, and Certification Market Companies

Major companies operating in the electric vehicle testing, inspection, and certification (TIC) industry are:

• Applus+
• Bureau Veritas
• DEKRA SE
• Eurofins Scientific
• Intertek Group plc
• Materials Technology
• SGS SA
• TUV Rheinland
• TUV SUD
• UL LLC
   

Electric Vehicle Testing, Inspection, and Certification Industry News

• In October 2023, SGS, a prominent player in the TIC industry, launched a new AI-powered tool for analyzing battery deterioration and predicting lifespan more precisely. This uses machine learning algorithms trained on large datasets to give manufacturers vital insights for improving battery design and performance.
   
• In March 2023, DEKRA recently announced a collaboration with an Israeli company “Argus Cybersecurity” focused on cybersecurity testing for electric vehicles (EVs). The collaboration aims to develop and offer comprehensive cybersecurity testing services for EVs.
   

The electric vehicle testing, inspection, and certification (TIC) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Offering

• Testing
• Inspection
• Certification

Market, By Vehicle

• Passenger vehicle
• Commercial vehicle

Market, By Sourcing

• In-house
• Outsourcing

Market, By Application

• Safety and Security
• Communication
• EV Charging
• Connectors
• Others

The above information has been 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