Dublin, Dec. 13, 2021 (GLOBE NEWSWIRE) -- The "Global Automotive TIC Market - Growth, Trends, COVID-19 Impact and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The automotive TIC market is expected to register a CAGR of 7.3% during the forecast period 2021 - 2026. The increasing trend of the adoption of electronic systems in automobiles has led to the demand for testing equipment. With the adoption of electronic systems, special care needs to be taken to test them on a regular basis in order to maintain their efficiency.
Key Highlights
- TIC ensures the development of high-quality components and vehicles while supporting automotive suppliers in continuous improvements of existing technologies and new innovations to make mobility safer, secure, and more physically efficient. The increasing amount of cases for component failures in automobiles has led to increased adoption of TIC. The component failures result in a huge amount of cost to the company as well as lead to customer dissatisfaction.
- Furthermore, the issues in maintaining the quality of the automobiles by the major vendors in the industry also lead to new opportunities for the market for automotive TIC services. For instance, in March 2021, Jaguar Land Rover announced that it is losing more than 100,000 sales annually due to quality issues, creating a bad image of the company. The company is planning to tackle the quality problem with a new business model
- With globalization in trades and businesses, distinct local regulations and standards are some of the key barriers to the acceptance of products internationally. Automobile manufacturers are expected to invest significantly to establish in-house TIC facilities or coordinate with local TIC service providers to manufacture products which are compliant with the local regulatory norms.
- The short-term impact of the COVID-19 on the automotive TIC market is that the automotive factories rely on significant human labor, and production has been scaled back, which affects the growth of the market. The long-term R&D and production-related TIC in the automotive industry may be significantly impacted due to a downturn in the global economic outlook. The lower vehicle demand and supply chain difficulties mean that production may take time to recover. However, the urgency to EV transition suggests R&D budgets and related TIC may be mostly protected in the long term.
Key Market Trends
Testing is Expected to Hold a Significant Market Share
- The testing and analysis services enable to check that products and commodities have the required properties. The test for compliance with applicable standards, regulations, and specifications, is usually performed in the laboratory and also provided on-site testing for manufacturing and process industries.
- The service providers are focussing on developing a large network of laboratories operating worldwide. Offering state-of-the-art laboratory equipment and field-specific technical expertise, their facilities are strategically located for the clients' benefit, granting easier access from ports and major manufacturing locations.
- The testing is the most important part of the automobile as it informs the manufacturers whether it is in compliance with the manufacturing standards. The companies with low expenditure patterns in the automobile industry complete the testing and introduce the product in the market to avoid fatal errors. The increased number of automobile sales will have a direct impact on the growth rate of Testing due to the increased emphasis on driver safety.
- The COVID-19 pandemic has led to an increase in the trend of digitalization in the market, with some of the major companies focusing on software solutions for TIC services. Furthermore, remote testing is being accepted by the government authorities, which also helps in the growth of the market. For instance, the remote TIC services for automotive offered by TUV SUD is accepted by the German KBA (Kraftfahrtbundesamt), the Dutch RDW (Rijksdienst voor het Wegverkeer), the Irish NSAI (National Standards Authority of Ireland), and the Luxembourgish SNCH (Societe Nationale de Certification et d'Homologation).
North America is Expected to Hold a Strong Market Share
- The United States has dominated the light vehicle segment. With the increased manufacturing of cars in the United States, the North American region is expected to notice a substantial growth in the forecast period.
- The growth in electric vehicles further presents new opportunities for the automotive TIC market. Furthermore, the government is also playing a major factor in driving the growth of the market in the country.
- For instance, in 2020, the United States Environmental Protection Agency (EPA) proposed technical changes to emissions testing protocols and compliance calculations for the Light-duty Greenhouse Gas (GHG) Emissions Standards and Fuel Economy Standards to provide a smooth transition from using test fuel with 0% ethanol (E0) to test fuel that contains 10% ethanol (E10). Introduction to such laws and other regulations makes TIC services imperative for automotive companies in this region.
Companies Mentioned
- Dekra SE
- Intertek Group
- TUV Rhienland Group
- Applus Group
- TUV SUD Group
- TUV Nord
- Eurofins Group
- SGS Group
- Bureau Veritas
For more information about this report visit https://www.researchandmarkets.com/r/t9qfci
