The concept of TIC (Testing, Inspection, and Certification) is gradually becoming commonplace due to increased awareness about environmental regulations. Companies in the automotive testing, inspection, and certification market are leveraging opportunities in government as well as in the leasing and fleet companies to generate new revenue streams. This explains why testing and certification services are projected for tremendous growth and the market for automotive testing, inspection, and certification is estimated to reach a value of ~US$ 29 Bn by 2027.
In order to capitalize on the demand for TIC services, companies are launching new laboratory buildings to expand their reach. For instance, Intertek Group Plc.- a leading Total Quality Assurance provider to industries worldwide, announced the launch of their new laboratory building in San Antonio, housing its transportation technologies services. Companies in the automotive testing, inspection, and certification market are exploring multiple services such as chemical testing, emissions testing, and mechanical testing for automotive components.
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Demand for Wireless Connectivity Encourages Companies to Focus on Industry-specific Tests
The projected increase in vehicle connectivity has fueled the demand for automotive testing, inspection, and certification services. The ever-evolving needs of occupants have led to advancements in wireless automotive technologies. Key drivers such as industry 4.0 and IoT are contributing toward the growth of the automotive testing, inspection, and certification market. Wireless communication technologies are playing a crucial role in the safety of occupants. Thus, growing consumer demands for automated and connected mobility solutions are resulting in exponential growth of the automotive testing, inspection, and certification market, which is anticipated to progress at a CAGR of ~8% during the forecast period.
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Long range and short range applications of connected mobility solutions involve the global navigation satellite system and Near Field Communication (NFC). Hence, companies in the market for automotive testing, inspection, and certification are increasing their efficacy in industry-specific tests to focus on the functionality and efficiency of technologies. For instance, TÜV SÜD- a leading technical service corporation, is providing FCC (Federal Communications Commission) and GMA (Generic Multi-Access) (GMA) compliance for wireless and safety requirements.
Need for Uniform Regulatory Authority Persuades New Entrants to Compete with Leading Players
The automotive testing, inspection, and certification market is largely fragmented, as eight leading players account for ~20% of the market stake. However, heavy regulations associated with wireless equipment in vehicles pose a barrier for market growth.
Since several different regulatory boards in the market for automotive testing, inspection, and certification are introducing regulations, it is difficult for carmakers to get their products certified from regulatory authorities. Big enterprises in the automotive testing, inspection, and certification market are suffering exorbitant costs in the pursuit of their certification and smaller new entrants are falling short on expertise in order to succeed in the highly competitive automotive industry. Hence, there is growing demand for establishment of a uniform global regulatory authority that streamlines certification requirements of carmakers.
It is crucial for new entrants in the market for automotive testing, inspection, and certification to gain industry-specific expertise in wireless technologies and other aspects associated with industry 4.0 in the coming years.
Profitable Ventures Create Business Scope in Automated Vehicle Inspection
Strategic alliances of companies in the automotive testing, inspection, and certification market has led to the emergence of automated vehicle inspection. For instance, WeProov— an inspection mobile solution company, collaborated with the Bernard Group, one of the largest distributors of industry vehicles in France, to introduce their venture ProovStation to innovate in automated vehicle inspection services. As such, companies dealing in automated vehicle inspection services are tapping business expansion opportunities in France. This is evident, since the automotive testing, inspection, and certification market in Europe is estimated to witness significant growth in the near future.
Companies in the market for automotive testing, inspection, and certification are generating incremental opportunities through automated vehicle inspection services with the help of blockchain and AI technologies. Novel inspection services are being pervasively replaced by custom and time-efficient technological solutions. Companies are innovating in platforms that connect IT of vehicles with the API (Application Program Interface) of the novel software platforms.
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