The automotive TIC market is expected to grow from USD 16.5 billion in 2020 to USD 20.5 billion by 2025, at a CAGR of 4.3%.
The growth of this market can be attributed to the 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.
However, varying regulations/standards across various regions is the factor that restrains the market growth.
The global automotive industry is facing a slowdown due to the lockdown in several countries, 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.
The automotive TIC market in the pre-and post-COVID-19 scenario has been analyzed further in this study.
Certification services to register highest CAGR in automotive TIC market, by service type, during 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.
Certification services re crucial for manufacturers to ensure the compliance of their products with regulatory standards, thereby improving the marketability of products/services.
In-house services to hold a larger size of automotive TIC market, by sourcing type, during the forecast period
In automotive applications, in-house testing of electronic control units (ECUs) and other core components is done by automakers at their manufacturing facilities.
They are collaborating with public bodies and organizations including customs, competition authorities, and industrial health and safety authorities for conducting activities related to quality control and assurance.
Conducting in-house TIC services allow manufacturers to exert higher levels of control by keeping services and personnel under direct control; therefore, in-house services are likely to capture a larger share of the automotive TIC market.
In-house services not only lower the risks associated with poor vehicle maintenance, including equipment failure and crashes but also enable manufacturers to identify the problems instantaneously.
Vehicle inspection services to hold the largest size of automotive TIC market, by application, during the forecast period
Vehicle inspection is the process of inspecting vehicles to ensure that they conform to safety and emission regulations mandated by national or subnational governments.
Vehicles have to undergo a safety inspection before registration. Vehicle inspection services are performed for new, as well as used/resale vehicles.
Vehicle inspection services for new vehicles include a comprehensive inspection of the overall vehicle, which includes inspection of electrical systems and components; electric vehicles, hybrid electric vehicles, and battery systems; telematics; and others.
Automotive TIC market in Europe to hold largest market size during the forecast period
Europe is an important hub for the automotive sector owing to the presence of major automobile manufacturing companies such as Robert Bosch GmbH (Germany), Volkswagen AG (Germany), and Daimler AG (Germany).
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. However, the major economies of Europe, Germany, the UK, Spain, France, and Italy have reported the high production loss in automotive since the outbreak of the pandemic.
For more information, visit www.researchandmarkets.com