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.
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The global automotive TIC market is expected to grow from USD 16.5 billion in 2020 to USD 20.4 billion by 2025,at a CAGR of 4.3%. 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 majorfactors propelling the automotive TIC market growth. However, the global automotive industry is facing a slowdown due to the spread of coronavirus, resulting in disrupted supply chains, shut down of manufacturing, and decline in vehicle sales globally. The decline in sales of vehicles has impacted the global automotive TIC market.
Among all service types, certificationservicesareexpected to witness the highest CAGR in the automotive TIC marketduring 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 outsourcedservices 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 Europe is expected to growth atthe highest CAGR during the forecast period. Consistent development of vehicle-to-vehicle, vehicle-to-infrastructure, and in-vehicle entertainment technologies is expected to drive the studied market during the forecast period. European automotive sector calls for vehicle renewal incentives to kickstart economic recovery after COVID-19. The European automotive sector is proposing a plan comprising 25 actions to support a strong restart of the sector and the economy at large. The plan was issued by the four associations representing the full automotive supply chain: from equipment and tire suppliers, to vehicle manufacturers, to dealers and workshops (ACEA, CECRA, CLEPA and ETRMA). As part of the action plan, the sector calls for coordinated vehicle renewal schemes for all vehicle types and categories across the EU. This is intended to boost private and business demand, support economic recovery across the board.