Global TIC Services for Automotive market will reach 12657.57 million USD by the end of 2024

Publisher: QYResearch
Published Date: 2019/9/10

The Global TIC Services for Automotive market size was 9706.27 million USD in 2018 and it will be 12657.57 million USD in 2024, with a CAGR of 6.6% from 2018 to 2024.

Currently, the industry is fragmented and the top players operating in this eco-system have been in the acquisition spree to expand its services in opportunistic market sector of emerging economies. Factors are expected to work in favor of the market include the rising global production of a variety of vehicles, increased environmental air pollution levels, and rising numbers of road accidents. Government regulatory bodies will pay more emphasis on the periodic vehicle testing and inspection. The growth of the market is also supplemented by the rising demand for automated and technologically advanced vehicles, coupled by the vast rise in imports and exports amongst countries are also some of the key drivers bolstering the demand for automotive testing, inspection, and certification services across the globe.

The Automotive TIC services market concentration is low due to the presence of large number of service providers in the space. The top 5 players account for around 32.77% of the total share in the global market. The key players are leveraging on mergers and acquisition activities to attain the inorganic growth and gain market share. Big players are mainly targeting small deals that indicate the scarcity of the sizeable targets in the fragmented market and high price of large-scale deals that offer less scope for value creation.

As testing is mandatory for all type of vehicles in many countries, the automotive testing services segment held 44.13% market share of the overall market in 2018. As the cost of testing services is much higher than that of inspection services, the revenue generated by the testing service segment is greater than that of any other segment. Inspection services are mandatory to perform at a specific time period and the certification is mandatory for each vehicle. The certification services segment held 28.65% of market revenue in 2018, strongly driven by the stringent safety and emission regulations and policy supervision.

In terms of region, Europe is dominating the Automotive TIC services market with over 43% of the total stake in 2018. The growth is driven by the stringent government regulations and standards to maintain the quality of the product. The European government had actively introduced several regulations to enhance the product safety, environmental health, and life cycle of infrastructure. The presence of the major market players such as SGS, Bureau Veritas, and Intertek in Europe also support the growth.

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