Market Trends of Automotive TIC Industry
This section covers the major market trends shaping the Automotive TIC Market according to our research experts:
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 (Société Nationale de Certification et d'Homologation).
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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.
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