The global automotive TIC market is projected to grow from USD 17.7 billion in 2023 to USD 20.9 billion by 2028, registering a CAGR of 3.4%. The rising complexity and advancement of automotive technologies, coupled with the increasing emphasis on safety, quality, and compliance, have driven the demand for TIC services in the automotive industry. TIC providers play a crucial role in conducting comprehensive testing, inspection, and certification procedures to ensure that vehicles, components, and systems meet the required regulations and industry standards. The growing adoption of electric vehicles connected cars, and autonomous driving technologies has also contributed to the growth of the automotive TIC market. Furthermore, the significance of TIC services has been amplified by globalization, international trade, and the need for market access, facilitating cross-border automotive operations. Given the continuous evolution of the automotive sector and the growing focus on innovation and sustainability, the automotive TIC market is expected to experience sustained growth in the foreseeable future.
Testing services are expected to be the largest and fastest-growing service type segment during the forecast period. The increasing complexity and technological advancements in vehicles have necessitated comprehensive testing to ensure their performance, safety, and compliance with regulatory standards. As new technologies such as electric vehicles, advanced driver assistance systems (ADAS), and connectivity features continue to emerge, there is a greater need for specialized testing to evaluate their functionality, reliability, and interoperability. Additionally, stringent safety regulations and consumer expectations for quality and reliability drive the demand for testing services to verify the performance and durability of vehicle components and systems. Moreover, the globalization of the automotive industry and the expansion into new markets require compliance with various international standards, further boosting the demand for testing services. Overall, the growth of testing services is driven by the industry’s commitment to delivering safe, reliable, and compliant vehicles in a rapidly evolving technological and regulatory landscape.
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In-house TIC is expected to be the largest segment in the automotive TIC market by sourcing type. In-house automotive TIC allows OEMs to perform rigorous testing and inspection of components, subsystems, and complete vehicles at various stages of the manufacturing process. This ensures that the vehicles meet the required standards, specifications, and regulatory requirements. OEMs can tailor the testing protocols and criteria to align with their specific product designs, performance targets, and quality assurance standards. By having in-house TIC capabilities, OEMs can closely integrate the testing and certification processes with their product development and manufacturing operations. This enables them to identify and address potential issues or defects early in the production cycle, leading to improved efficiency, cost savings, and faster time-to-market.
Passenger cars are expected to be the largest segment in the automotive TIC market by vehicle type. The rapid urbanization and increasing disposable income in many countries across the Asia Pacific region have led to a surge in demand for passenger vehicles. This growing market presents significant opportunities for TIC providers to offer their services to ensure these vehicles’ safety, quality, and compliance. The strict regulatory frameworks and safety standards imposed by governments in the region have created a strong demand for TIC services. These regulations aim to enhance road safety and consumer protection, requiring thorough testing and certification of passenger vehicles. The increasing adoption of advanced technologies in passenger vehicles, such as ADAS, connectivity features, and electric powertrains, has fueled the need for comprehensive testing and validation. TIC providers play a crucial role in evaluating the performance, reliability, and compliance of these technologies, which are increasingly sought after by consumers in the Asia Pacific region.
North America is a significant market during the forecast period. North America is home to a robust automotive industry, with the presence of major OEMs and suppliers such as General Motors, Ford Motor Company, and Tesla, among others. These automotive players strongly emphasize quality, safety, and compliance, driving the demand for TIC services to ensure their products meet the necessary standards and regulations. The region is witnessing increasing adoption of advanced automotive technologies, such as autonomous driving systems, electric vehicles, and connected cars. The complex nature of these technologies requires thorough testing and certification to ensure their performance, reliability, and safety. TIC providers play a vital role in verifying the compliance and functionality of these advanced systems. Additionally, North America has stringent regulatory frameworks and safety standards for automobiles. TIC services are crucial in ensuring that vehicles meet these regulatory requirements, covering aspects such as emissions, crashworthiness, and overall vehicle performance. Furthermore, consumer awareness and demand for high-quality and safe vehicles are driving the market. Consumers in North America prioritize safety and rely on TIC certifications as a mark of assurance and trust. Overall, the automotive TIC market in North America is poised for significant growth as the automotive sector continues to advance technologically and adhere to stringent regulatory standards.
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