Automotive Testing Inspection And Certification Market Size, Share, Opportunities, COVID-19 Impact, And Trend By Service (Testing, Inspection, Certification), By Sourcing (Outsourced, In-house), By Application (Telematics, Electrical Systems And Components, Interior & Exterior Material, Homologation Testing, Others), And By Geography - Forecasts From 2021 To 2026

Published:  Dec 2021 Report Code: KSI061611657 Pages: 114

The automotive testing inspection and certification market was valued at US$27.002 billion in 2019 and is expected to grow at a CAGR of 7.35% over the forecast period to reach a total market size of US$44.362 billion by 2026. 

The automotive testing, inspection, and certification (TIC) service are used to provide services to automotive TIC producers in order to improve efficiency, productivity, and the production process in order to achieve the necessary requirements. Furthermore, the use of smart sensors in vehicles such as radar, light detection and ranging, and others has enabled remote monitoring and prediction of maintenance capabilities, reducing the need for on-site inspection. As a result, technological developments in TIC like virtual reality (VR) and augmented reality (AR) will aid in the replacement of physical vehicle inspection with the digital inspection. Hence, in the near future, the replacement of physical inspection with digital inspection and predictive maintenance is projected to fuel the growth of the worldwide automotive testing, inspection, and certification market.

The rise in automobile manufacturing in emerging nations, as well as the quick shift in attitude toward outsourcing TIC services, are significantly affecting the growth of the automotive testing, inspection, and certification market. The increasing disposable incomes in emerging nations, as well as the increased focus of governments on imposing rigorous regulatory requirements on the automobile sector, are expected to fuel the expansion of the automotive testing, inspection, and certification market. Furthermore, the use of automotive electronics to ensure passenger and vehicle safety is projected to drive the growth of the automotive testing, inspection, and certification market during the forecast period.

However, the automotive testing, inspection, and certification market have certain limitations that are expected to obstruct the market's potential growth, such as varying regulations or standards across regions and declining global vehicle sales, while the long lead time required for overseas qualification tests can challenge the market growth.

automotive testing inspection and certification market

The Asia Pacific holds the majority of the global market and is expected to maintain its dominance during the projected period. The developing economies in this region, rising per capita income, rising demand, and more investment possibilities due to favorable government policies are attracting the attention of automobile manufacturers, who are looking to expand their production capacity in this region. This, in turn, leverages the technological revolution of the automobile production and service industries, resulting in the region's strong market growth. Furthermore, rising auto sales and production, rising demand for premium and autonomous vehicles, rising inclination toward electric cars, stringent government policies for vehicle safety and quality, and technological advancement in the automotive industry are encouraging automakers to expand in the market, thereby boosting automaker growth.

automotive testing inspection and certification market

Growth Factors:

  • Increasing demand for automobile safety and quality:

The global automobile industry is supervised through a variety of government rules regulating passenger safety as well as environmental issues (emission levels, fuel economy, noise, and pollution). These regulations/standards have a direct impact on and affect the design of automotive parts. Strict government regulations require automakers to include safety equipment like seatbelts, airbags, and crumple zones in their vehicles. Tariffs and other trade obstacles are imposed by major regulatory organizations to penalize and deter producers from violating pollution and safety standards, such as the continuous use of faulty equipment. This compels automakers to create fuel-efficient vehicles with significantly lower emissions, as well as add safety features such as anti-skid braking systems (ABS), electronic brake-force distribution (EBD), airbags, and emission control systems such as catalytic converters with turbochargers and exhaust gas recirculation (EGR) systems.

Restrains:

  • Regulations/standards differ across regions.:

With the globalization of trades and companies, specific regional regulations and standards are likely to create hurdles to product adoption on a global scale. This leads to disputes between local and international standards, impeding market expansion. Variations in regulatory requirements across different regions result in disparities in tax rates, incurring additional expenditures for businesses (hiring local staff to handle tax-related issues, etc.). Local regulations apply to TIC businesses, and they are required to obey the laws and norms of the countries in which they operate, which might limit their efficiency.

Impact of COVID-19 on the Automotive Testing Inspection And Certification Market

The COVID-19 pandemic had a significant impact on the automobile industry as a whole. Production halts and lockdowns have severely affected both supply and demand for OEMs and auto component suppliers. Manufacturers of automotive testing, inspection, and certification systems are experiencing manpower shortages and plant shutdowns, resulting in a significant drop in customer demand for automobile testing, inspection, and certification. The automotive testing, inspection, and certification sector have seen a huge reduction in market capitalization due to the pandemic, which has produced a disruption in demand and supply networks of the testing, inspection, and certification system manufacturers.

Key Developments:

  • UL, the global leader in safety science, revealed in September 2021 that it has developed an electronic identification (eID) certification system to examine products for conformity with ISO/IEC 18013–5:2021, the new international standard for personal identity - a mobile driving license (mDL).
  • BYD Headquarters formally opened the "Zero Carbon Industrial Campus" in Pingshan in September 2021, making it the first zero-carbon headquarters of Chinese automotive manufacturers.
  • Hyundai Heavy Industries Co., Ltd. (HHI) and Korea Shipbuilding and Offshore Engineering Co., Ltd. (KSOE) (formerly known as Hyundai Heavy Industries Co Ltd) received an Approval in Principle (AiP) from Bureau Veritas (BV), a global leader in testing, inspection, and certification, in September 2021 for their unique design and development of an ammonia carrier with ammonia-fueled propulsion.

Automotive Testing Inspection And Certification Market Scope:

Report Metric Details
 Market size value in 2019  US$27.002 billion
 Market size value in 2026  US$44.362 billion
 Growth Rate  CAGR of 7.35% from 2019 to 2026
 Base year  2019
 Forecast period  2021–2026
 Forecast Unit (Value)  USD Billion
 Segments covered  Service, Sourcing, Application, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered  Bureau Veritas S.A., SGS SA, Dekra Group, Intertek Group Plc, TUV SUD, BSI   Group, TUV Nord Group, ATIC, Applus+, NTS
 Customization scope  Free report customization with purchase

 

Market Segmentation

  • By Service
    • Testing
    • Inspection
    • Certification
  • By Sourcing
    • Outsourced
    • In-house
  • By Application
    • Telematics
    • Electrical Systems & Components
    • Interior & Exterior Material
    • Homologation Testing
    • Others
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • France
      • Germany
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • Thailand
      • Taiwan
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the automotive testing inspection and certification market?
A1. The automotive testing inspection and certification market is expected to grow at a CAGR of 7.35% during the forecast period.


Q2. What will be the automotive testing inspection and certification market size by 2026?
A2. The global automotive testing inspection and certification market is expected to reach a market size of US$44.362 billion by 2026.


Q3. What is the size of the global automotive testing inspection and certification market?
A3. Automotive Testing Inspection And Certification Market were valued at US$27.002 billion in 2019. 


Q4. Which region holds the maximum market share in the automotive testing inspection and certification market?
A4. The Asia Pacific holds the majority of the automotive testing inspection and certification market and is expected to maintain its dominance during the projected period.


Q5. What factors are anticipated to drive the automotive testing inspection and certification market growth?
A5. The rise in automobile manufacturing in emerging nations, as well as the quick shift in attitude toward outsourcing TIC services, are significantly affecting the automotive testing inspection and certification market growth.

1. Introduction
1.1. Market Definition
1.2. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Automotive Testing Inspection & Certification Market Analysis, By Service
5.1. Introduction
5.2. Testing
5.3. Inspection
5.4. Certification

6. Automotive Testing Inspection & Certification Market Analysis, By Sourcing
6.1. Introduction
6.2. Outsourced
6.3. In-house

7. Automotive Testing Inspection & Certification Market Analysis, By Application
7.1. Introduction
7.2. Telematics
7.3. Electrical Systems & Components
7.4. Interior & Exterior Material
7.5. Homologation Testing
7.6. Others

8. Automotive Testing Inspection & Certification Market Analysis, By Geography 
8.1.  Introduction
8.2.  North America
8.2.1. United States
8.2.2. Canada
8.2.3. Mexico
8.3. South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4. Europe
8.4.1. UK
8.4.2. France
8.4.3. Germany
8.4.4. Italy
8.4.5. Others
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.5.2. UAE
8.5.3. Others
8.6. Asia Pacific
8.6.1. Japan
8.6.2. China
8.6.3. India
8.6.4. Thailand
8.6.5. Taiwan
8.6.6. Indonesia
8.6.7. Others

9.  Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2.  Emerging Players and Market Lucrativeness
9.3.  Mergers, Acquisitions, Agreements, and Collaborations
9.4.  Vendor Competitiveness Matrix

10. Company Profiles
10.1. Bureau Veritas S.A.
10.2. SGS SA
10.3. Dekra Group
10.4. Intertek Group Plc
10.5. TUV SUD
10.6. BSI Group
10.7. TUV Nord Group
10.8. ATIC
10.9. Applus+
10.10. NTS

Bureau Veritas S.A.

SGS SA

Dekra Group

Intertek Group Plc

TUV SUD

BSI Group

TUV Nord Group

ATIC

Applus+

NTS

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