U.K. New Energy Vehicle TIC Services Market (By Service Type: Testing, Certification; By Sourcing Type: In-House, Outsourced; By Application; By Vehicle Type; By Industry) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.K. new energy vehicle TIC services market size was estimated at around USD 572.15 million in 2023 and it is projected to hit around USD 1,062.96 million by 2033, growing at a CAGR of 6.39% from 2024 to 2033.

Key Pointers

• By Sourcing Type, the in-house segment led the market with a revenue share over 63% in 2023.
• By Service Type, the testing segment dominated the market with a revenue share over 61% in 2023.
• By Application, the safety and security segment contributed the largest market share of 48% in 2023.
• By Vehicle Type, the battery electric vehicles (BEVs) segment held the largest revenue share of over 48% in 2023.
• By Industry, the automotive segment dominated the market with a revenue share of over 50% in 2023.

U.K. New Energy Vehicle TIC Services Market Growth

The growth of the U.K. new energy vehicle testing, Inspection, and Certification (TIC) Services market is propelled by a confluence of factors contributing to its expansion. Foremost among these factors is the escalating adoption of New Energy Vehicles (NEVs), including electric and hybrid vehicles, driven by an increasing awareness of environmental sustainability and a growing emphasis on reducing carbon footprints. Stringent regulatory frameworks and standards governing the automotive industry in the United Kingdom further stimulate the demand for TIC services, as manufacturers strive to ensure compliance and safety. The continuous evolution of NEV technologies, marked by innovations in battery efficiency, range, and overall performance, serves as a catalyst, necessitating specialized testing and certification processes. Additionally, heightened consumer trust in certified and tested vehicles, coupled with government incentives promoting NEV adoption, creates a favorable market environment. As the market for New Energy Vehicles continues to burgeon, the role of TIC services becomes increasingly pivotal, positioning the industry for sustained growth in the foreseeable future.

Report Scope of the U.K. New Energy Vehicle TIC Services Market

U.K. New Energy Vehicle TIC Services Market Dynamics

Drivers

• Technology Standardization: The rapid evolution of NEV technologies brings forth challenges related to standardization. Lack of uniformity in technological standards across manufacturers complicates the TIC process, creating hurdles for streamlined certification and testing protocols.
• Limited Public Awareness: Despite growing environmental consciousness, there exists a level of limited awareness among the general public regarding the benefits and functionalities of New Energy Vehicles. This lack of awareness can impede market growth, as potential consumers may not fully comprehend the value of TIC services in ensuring the reliability and safety of NEVs.

Restraints

• Range Anxiety: The phenomenon of "range anxiety," wherein consumers fear that the limited driving range of electric vehicles may lead to inconvenient situations, acts as a deterrent. Addressing this concern through technological advancements and education becomes essential to overcome this restraint.
• Regulatory Uncertainties: Evolving regulatory landscapes and uncertainties surrounding government policies on incentives and subsidies for NEVs can create hesitation among consumers and manufacturers alike. This uncertainty affects long-term investment decisions and, consequently, the demand for TIC services.

Opportunities

• Diversification of TIC Services: As the NEV market expands, there is potential for TIC service providers to diversify their service offerings. This may include developing specialized testing protocols for specific components, software systems, or cybersecurity measures associated with electric and hybrid vehicles.
• Global Market Expansion: TIC service providers in the U.K. can explore opportunities for global expansion, offering their expertise to international NEV manufacturers. Establishing a presence in emerging markets with a growing interest in sustainable transportation broadens the scope for market reach and revenue generation.

Sourcing Type Insights

The in-house segment led the market with a revenue share over 63% in 2023. In-house TIC of EVs in the UK is becoming increasingly common, particularly among large automakers. When automakers perform TIC in-house, they have complete control over the process, from the development of test procedures to the execution of tests. This helps to ensure that EVs are tested and certified to the highest standards. Major players in the UK are significantly fueling market growth with new strategic initiatives. For instance, in April 2023, Jaguar Land Rover (JLR), which has in-house TIC in the UK, revealed stimulating strategies to accelerate its conversion to become the world's top manufacturer of modern luxury cars, revealing its next-generation electrified modular architecture (EMA) for medium-sized SUVs and its Halewood plant in the UK, which will become an all-electric production facility.

The outsourced segment is estimated to grow significantly over the forecast period. Outsourced TIC providers have the expertise and services necessary to test and certify EVs to the highest standards. This process can be particularly beneficial for smaller automakers and companies that need more resources to invest in in-house TIC. Key players are initiating strategic developments, which are significantly propelling market growth. For instance, in June 2022, a new facility for EV battery testing was established by Applus+ Laboratories. The new lab has already opened at Applus+ 3C Test, at their UK test center. It is specifically used for battery testing for UN DOT 38.3 compliance and ECE R100 homologation.

Service Type Insights

The testing segment dominated the market with a revenue share over 61% in 2023. The rapid growth of the testing segment in the new energy vehicle industry is fueled by the increasing adoption of electric and hybrid vehicles. The segment is evolving with the widespread adoption of AI and ML for more precise and efficient testing methods, utilizing data analysis to spot patterns and irregularities. The development of new test equipment for next-generation batteries, such as solid-state batteries, is meeting the changing needs of industry. On-site testing is gaining traction to minimize downtime and enhance efficiency, driving the creation of portable, compact test equipment.

The certification segment is estimated to grow significantly over the forecast period. There is a growing emphasis on safety and cybersecurity certification due to the increasing complexity of NEVs and their interconnected nature. Certification bodies are developing new standards to assess these aspects. There is a rising demand for over-the-air (OTA) software updates to enhance NEV performance, safety, and security, with corresponding certification standards evolving. Furthermore, certification services in the UK are gaining importance as NEV manufacturers are expanding their foothold into new markets, leading certification bodies to collaborate on harmonized standards and procedures for facilitating NEV certification.

Application Insights

The safety and security segment contributed the largest market share of 48% in 2023. Safety and security are very critical, and TIC services in NEV as for many people buying a new car, safety is the top concern. Prospective purchasers are interested in learning the operation of EVs in terms of safety as EVs become more and more common in the UK. Consequently, EVs are equipped with a multitude of safety features and undergo extensive testing and safety checks prior to being allowed on public roads. The UK government has introduced several regulations that require EVs to meet certain safety and security standards. For instance, all new EVs sold in the UK are certified to the UNECE WP.29 standards for electric vehicles.

The connectors segment is predicted to foresee significant growth in the forecast period. A significant development in connectors is fueling the market growth of the UK NEV TIC market. For instance, on 13 July 2023, the robustness of the cable to connection determines the high voltage connector that ABB invented, which is necessary for the increasing number of heavy-duty EVs and EVs. Heavy-duty EV wires are especially exposed to strain, high engine temperatures, vibration, abrasion, corrosion, and infiltration. With its Harnessflex EVOTM Connector Interfaces, ABB Installation Products created the first entire line of hinged high voltage connector backshells for heavy-duty EVs to safeguard and stabilize these connections.  

Vehicle Type Insights

The battery electric vehicles (BEVs) segment held the largest revenue share of over 48% in 2023. The UK has been experiencing significant growth in the testing and development of BEVs. Several factors, including government initiatives such as in May 2022, the UK government introduced new legislation where the government will work with EV industries to make data more accessible so that drivers can simply pay for their charging, compare costs, and rely on the public ChargePoint network with increased dependability, regardless of the ChargePoint supplier, and access real-time information about ChargePoint across the network. Environmental concerns, consumer demand, and advancements in electric vehicle technology are also significantly contributing to market growth.

The Fuel Cell Electric Vehicles (FCEVs) segment is predicted to foresee significant growth in the forecast period. The UK is making strides in expanding its hydrogen refueling infrastructure. Hydrogen refueling is a crucial trend as FCEVs rely on hydrogen fuel cells, and the availability of refueling stations is vital for their growth. Testing and certification of these hydrogen refueling stations were a part of this expansion trend. FCEVs are seen as promising technology for achieving emission reduction goals, especially in heavy-duty transportation such as buses and trucks.  

Industry Insights

The automotive segment dominated the market with a revenue share of over 50% in 2023 owing to an increase in sales of BEVs and plug-in hybrid electric vehicles (PHEVs). Premium EV brands such as Tesla, BMW AG, and Mercedes-Benz AG are increasing their market share by providing high-quality and high-performance EV models. For instance, in September 2023, Cambustion Ltd. launched a testing laboratory in Cambridge, UK, which provides diverse testing services for the electric vehicle (EV) industry. These services encompass electric powertrain development, all-wheel drive hub dyno and chassis dynamometer test cells, and facilities for testing electric motors, batteries, and fuel cells.

The aerospace segment is anticipated to register the fastest CAGR over the forecast period. In the UK, several research and development projects focused on electric and hybrid-electric aircraft, supported by government funding and partnerships between aerospace firms and academic institutions, are undertaken to advance electrified aviation technologies. These initiatives aim to reduce the aviation industry's carbon footprint and address sustainability goals. Also, companies are actively developing electric propulsion systems while regulatory and certification challenges unique to electrified aircraft are being addressed.

U.K. New Energy Vehicle TIC Services Market Key Companies

• Bureau Veritas
• DEKRA SE
• Element Materials Technology
• Intertek Group plc
• iASYS Technology Solutions
• SGS Société Générale de Surveillance SA
• TÜV SÜD
• TÜV Rheinland
• The British Standards Institution
• UL LLC

U.K. New Energy Vehicle TIC Services Market Report Segmentations:

By Service Type

• Testing
  • Battery Testing
  • Electric E-Motor Testing
  • Electromagnetic Compatibility (EMC) Testing
  • Component Testing
• Inspection
• Certification

By Sourcing Type

• In-House
• Outsourced

By Application

• Safety and Security
• Connectors
• Communication
• EV Charging

By Vehicle Type

• BEV
• PHEV
• FCEV
• Others

By Industry

• Automotive
• Aerospace
• Defense
• Others