Automotive Testing, Inspection, and Certification (TIC) Market: Strategic Insights for 2028 Outlook

The Automotive Testing, Inspection, and Certification (TIC) Market is projected to grow by USD 6.48 billion from 2023 to 2028, at a CAGR of 6.4%. This growth is driven by the expanding automotive industry, the adoption of over-the-air TIC solutions, and the increasing demand for electric and autonomous vehicles.For more details about the industry, get the PDF sample report for free

Market Overview

The automotive TIC market encompasses a range of services ensuring the compliance and safety of vehicles, components, and electrical products in the global automotive sector. Stringent emission regulations, driven by increasing pollution levels and a growing vehicular population, continue to shape market dynamics. The rise of electric vehicles (EVs) and autonomous vehicles necessitates advanced testing and certification for battery safety, electrical products, and sensor adoption. Automotive component manufacturers and device manufacturers require TIC services to meet carbon emission targets and vehicle safety regulations. Passenger vehicles and commercial vehicles alike undergo rigorous testing and certification processes for quality control, vehicle recall prevention, and maintaining regulatory compliance.

Market Segmentation

By Type

• Inhouse: This segment is estimated to witness significant growth during the forecast period. In-house TIC activities are critical for quality control and assurance, allowing manufacturers greater control by keeping services and personnel under direct supervision. In-house TIC services encompass testing of electronic control units (ECUs) and other core components, ensuring compliance with pollution levels, emission regulations, and safety standards for fuel-efficient vehicles, electric vehicles (EVs), autonomous cars, and hybrid vehicles.

• Outsourced: Outsourced TIC services are utilized by manufacturers to leverage external expertise and infrastructure, facilitating compliance with regulatory standards without the need for significant internal investment.

By Vehicle Type

• Passenger Cars: The increasing sales of EVs and hybrid vehicles in the passenger car segment drive the demand for TIC services, focusing on battery safety, electromagnetic compatibility, crash-test requirements, and cybersecurity.

• Commercial Vehicles: Commercial vehicles require rigorous testing and certification processes to ensure safety compliance, particularly in the context of emission regulations and the integration of advanced technologies.

By Geography

• Europe: Europe is estimated to contribute 36% to the growth of the global market during the forecast period. Established automobile industries in countries like Germany, the UK, France, Italy, and Spain drive the demand for TIC services, particularly in the context of stringent emission regulations and the shift towards electric and autonomous vehicles.

• North America: The North American market, particularly the United States, is characterized by a strong focus on vehicle safety and emission standards, driving the demand for comprehensive TIC services.

• Asia-Pacific (APAC): Countries like China and Japan are witnessing rapid growth in the automotive sector, necessitating advanced TIC services to ensure compliance with evolving regulatory standards.

• Middle East and Africa: The automotive industry in this region is expanding, with increasing investments in infrastructure and manufacturing, leading to a growing demand for TIC services.

• South America: The South American market is experiencing growth in the automotive sector, with a focus on improving vehicle safety and compliance with emission regulations, thereby increasing the need for TIC services.

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Market Dynamics

Drivers

• Growing Automotive Industry: The global expansion of the automotive industry, including the rise of electric and autonomous vehicles, drives the demand for TIC services to ensure compliance with safety and emission standards.

• Stringent Emission Regulations: Increasing pollution levels and a growing vehicular population necessitate stricter emission standards, leading to a heightened demand for testing, inspection, and certification services.

• Technological Advancements: The integration of advanced technologies in vehicles, such as telematics, in-vehicle entertainment, and vehicle-to-vehicle communication, requires comprehensive TIC services to ensure safety and compliance.

Trends

• Adoption of Over-the-Air (OTA) TIC: The implementation of OTA TIC solutions streamlines the certification process, reduces lead time, and enhances efficiency in ensuring vehicle compliance with regulatory standards.

• Focus on Electric and Autonomous Vehicles: The rise of EVs and autonomous vehicles necessitates specialized TIC services, including testing for battery safety, electromagnetic compatibility, cybersecurity, and homologation.

Challenges

• High Lead Time in Traditional TIC Processes: The traditional TIC processes involve extensive testing and certification, leading to high lead times that can impact production schedules and market readiness.

• Raw Material Shortages and Shipping Delays: Supply chain disruptions, including raw material shortages and shipping delays, can affect the timely execution of TIC services, posing challenges to manufacturers.

Competitive Landscape

Key players in the automotive TIC market include:

• Apave Group

• Applus Services S.A

• British Standards Institution

• Bureau Veritas SA

• DEKRA SE

• DNV Group AS

• Element Materials Technology Group Ltd.

• Eurofins Scientific SE

• Intertek Group Plc

• Mistras Group Inc.

• Nemko

• SGS SA

• TUV NORD AG

• TUV Rheinland AG

• TUV SUD AG

• UL Solutions Inc.

These companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

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Strategic Takeaways

• The automotive TIC market is poised for significant growth, driven by the expanding automotive industry, technological advancements, and stringent regulatory standards.

• Manufacturers are increasingly adopting in-house TIC services to maintain control over quality assurance processes and ensure compliance with evolving standards.

• The adoption of OTA TIC solutions presents opportunities for streamlining certification processes and reducing lead times.

• Challenges such as high lead times in traditional TIC processes and supply chain disruptions need to be addressed to ensure timely compliance and market readiness.

Market Research Overview

The Automotive Testing, Inspection, and Certification (TIC) Market is evolving rapidly to address the increasing demand for vehicle inspection, emission testing, and component testing driven by advancements in automotive technologies and stricter regulatory compliance norms. As over-the-air (OTA) testing becomes more prominent, especially for autonomous vehicles, the market is incorporating advanced solutions for safety certification, performance testing, and durability testing to ensure quality assurance. The rise of connected vehicles and innovations in wireless technology have increased the focus on software validation, battery testing, and sensor testing—particularly as EV certification becomes a critical requirement for electric mobility. Key procedures such as brake testing, tire testing, and acoustic testing are vital in vehicle development pipelines, alongside homologation testing and crash testing, which validate both regulatory and consumer safety expectations. With increasing focus on fuel efficiency and sustainable transportation, environmental testing has become integral to development cycles.

Future Implications

As the automotive industry continues to evolve with the integration of electric and autonomous vehicles, the demand for specialized TIC services will increase. Manufacturers and TIC service providers must invest in advanced testing and certification capabilities to meet the complex requirements of modern vehicles. Additionally, the adoption of digital solutions, such as OTA TIC, will become increasingly important in enhancing efficiency and reducing time-to-market.

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Risks and Challenges

• Regulatory Compliance: Keeping up with evolving regulatory standards across different regions can be challenging for manufacturers and TIC service providers.

• Technological Complexity: The integration of advanced technologies in vehicles increases the complexity of testing and certification processes.

• Supply Chain Disruptions: Raw material shortages and shipping delays can impact the timely execution of TIC services.

Research Analysis Overview

In-depth research analysis of the Automotive TIC market highlights the growing emphasis on telematics testing, cybersecurity testing, and functional safety to support safe integration of complex automotive software and hardware systems. The execution of compliance audits and adherence to international certification standards ensures alignment with global best practices. Testing processes such as vehicle diagnostics, chassis testing, and powertrain testing are increasingly automated and data-driven, enhancing reliability and turnaround times. Similarly, thermal testing, vibration testing, and material testing are critical for validating structural integrity and operational endurance. Specialized domains like electrical testing, ECU testing, and infotainment testing ensure that vehicle electronics function optimally under real-world conditions. Moreover, validations for navigation systems, radar testing, lidar testing, and camera testing are foundational for advanced driver-assistance systems (ADAS) and autonomous technologies. As clean mobility gains momentum, emerging trends like hydrogen fuel integration and fuel cell development are expanding the TIC landscape with new testing protocols and certification benchmarks.

Actionable Recommendations

• Invest in In-House TIC Capabilities: Manufacturers should consider developing in-house TIC capabilities to maintain control over quality assurance processes and ensure compliance with regulatory standards.

• Adopt Digital Solutions: The implementation of digital solutions, such as OTA TIC, can enhance efficiency and reduce lead times in the certification process.

• Collaborate with TIC Service Providers: Establishing strategic partnerships with TIC service providers can help manufacturers navigate the complex regulatory landscape and ensure timely compliance.

• Monitor Regulatory Developments: Staying informed about evolving regulatory standards across different regions is crucial for maintaining compliance and market readiness.

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