Market Size of Automotive TIC Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive TIC Market Analysis
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.
- 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.
