The global automotive testing, inspection, and certification market was valued at US$ 14.92 Bn in 2019 and is estimated to reach US$ 28.8 Bn in 2027, expanding at a CAGR of 8.1% from 2020 to 2027.
Rising automation of vehicles and integration of advanced features in modern-age vehicles are propelling the automotive testing inspection, and certification industry. Variations in technologies of vehicles and rising number of accidents due to manufacturing faults are anticipated to drive the market
According to the report, the automotive testing, inspection, and certification market is likely to be driven due to stringency of regulations for testing and certification by governing authorities. The rising number of road accidents supplemented by an increasing demand for automated and technologically advanced vehicles, coupled by increased import and export among countries is boosting the demand for automotive testing, inspection, and certification services.
Expansion of Testing, Inspection, and Certification Market
Increase in the number of accidents and environmental air pollution levels is prompting relevant governing/ regulatory bodies to pay more emphasis on periodic vehicle testing and inspection. Consequently, key players in this industry are likely to bag great opportunities for testing, inspection services in the next two to four years. The rise in stringency of safety regulations propels the demand for testing, inspection, and certification services, as it is important for companies operating in diverse industries, as these services ensure the maintenance of health, safety, and quality requirements of concerned products. Increased focus of the enterprise sector on safety legislations and standards, diverse requirement of products, and standard regulations are major factors driving the market. Moreover, change in regulations for different automotive systems in various regions is anticipated to boost the market for testing, inspection and certification market such as surge in pollution level of the country has lead it to adopt more stringent emission norms which propelled the market for testing, inspection, and certification services. The Government of China is promoting eclectic vehicles in order to reduce pollution and is likely to ban cars that run on fossil fuels.
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.
Scope of the Report
The study provides a decisive view of the global automotive testing, inspection, and certification market by segmenting it by service type, by sourcing type, by place, and geography. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for automotive testing, inspection, and certification in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual segments in all the regions.
The report provides the estimated market size of automotive testing, inspection, and certification for 2016 and forecast for the next nine years. The global market size of automotive testing, inspection, and certification has been provided in terms of revenue. Market numbers have been estimated based on key service type, sourcing type, place, and region. Market size and forecast for each major service type, sourcing type and place have been provided in terms of global and regional/country markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, North American Department of Transport, Europe Department of Transport, Automotive Research Association of India (ARAI), Organisation Internationale des Constructeurs d'Automobile (OICA), Factiva, etc.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.