Automotive Testing Market Size
Global Automotive Testing Market reached USD million in 2022 and is projected to witness lucrative growth by reaching up to USD million by 2031. The market is growing at a CAGR of 4.2% during the forecast period (2024-2031).
Automotive testing involves putting complete vehicles, components and systems through various laboratory, virtual and real-world tests to ensure safety, reliability and compliance with safety laws.
Based on vertical, the passenger car segment is estimated to be the largest market for automotive testing in the forecast period. The segmental growth is due to rising customer purchasing power and demand for passenger automobiles in India. The sale volume of passenger vehicles far outstrips commercial vehicles and hence, it is leading in the segmentation.
Market Summary
| Metrics | Details |
| CAGR | 4.2% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Product, Vertical and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The increasing utilization of electronic components in vehicle
Road accidents in India are a serious issue. India accounts for the largest road accident fatalities globally. According to the latest available data from the Ministry of Road Transport and Highways (MoRTH), more than 4.5 lakh road accidents occurred in 2019, causing more than 1.5 lakh fatalities.
Although there are numerous causes are behind the accidents, attention has been drawn to the poor quality of vehicles sold in India. The Global NCAP (New Car Assessment Program), an independent vehicle safety charity, conducted crash tests of popular models sold in India and rated them below average due to lack of safety features and poor build quality.
The Government of India unveiled new vehicle safety laws that make using safety features such as ABS and ESP mandatory in all new vehicles sold in the country from April 2019. Further supplementary laws mandate regular crash testing of vehicles at par with UN standards. The government-mandated the use of dual airbags from 1st April 2021 and a minimum of six airbags will be made mandatory starting from 1st October 2022. Many other such laws are under consideration.
Changing regulations
Different local norms and standards are anticipated to make it harder for products to be accepted globally as trade and enterprises become more globalized. Conflicts between national and international standards result, which limits market expansion.
Different regulatory requirements in different places lead to variances in tax rates and additional costs for firms, such as hiring staff to deal with tax-related difficulties, etc. The regulations and norms of the nations in which automotive testing organizations operate must be complied with, which may limit their effectiveness.
For instance, noise is one of the most prevalent ecological issues in the neighborhood. When vehicles are outfitted with different parts, like engines and chassis, they make more noise. Due to the combustion process inside them, internal combustion engine (ICE) based engines generally make more noise.
Vehicle noise upsets the driver and has a detrimental effect on the environment. As a result, strict government measures have been implemented to lessen vehicular noise.
Market Segment Analysis
The global automotive testing market is segmented based on type, product, vertical and region.
The rising importance of vehicles to servive in harsh environmental conditions
Environmental Testing in automotive testing is expected to hold a signifcant market share at the global level. Environmental testing simulates the various climatic conditions and mechanical stresses that products are subjected to throughout their lives. Environmental testing will reveal flaws in a product's design or performance that could occur in service, especially at extreme temperatures.
Environmental test chambers are present in various sizes for simulating temperatures ranging from -70°C to 180°C and relative humidity ranging from 10% to 98.5% for testing components to large products. Environmental test chambers are primarily used in the automotive and other industries for component and product reliability testing for durability in harsh environmental conditions.
Environmental testing also aids in demonstrating your products' compliance with global regulations, making it easier to access global markets. Environmental testing also increases consumer trust in your products.
Market Geographical Share
Asia-Pacific’s ongoing advancements in safety systems and technical advancements
Asia-Pacific serves as the center of the automobile industry. An increase in consumer spending power is driving the region's demand for cars.
The enormous population of countries like India, which makes up a sizeable portion of the world's population, is a major factor in the region's development. India is anticipated to account for 3.47% of the global automotive testing industry and 8.55% of Asia-Pacific market.
Additionally, several OEMs have either built production facilities or worked with domestic vehicle manufacturers due to the low cost of production and accessibility of cheap labor. Due to ongoing advancements in safety systems and technical advancements, Asia-Pacific is predicted to become the fastest-growing region for automotive testing.
Automotive Testing Companies
The major global players include SGS SA, Intertek Group Plc, Robert Bosch Gmbh, Anritsu, Siemens AG, D&V Electronics, TÜV RHEINLAND, Dekra, UL Solutions, Rohde & Schwarz GmbH & Co KG, Element and AVL List GmbH.
Key Developments
- On February 4, 2019, SGS SA expanded and enhanced its automotive testing services by initiating airbag testing in its laboratory located in Gurgaon, India. The respective facility is accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL) for ISO/IEC 17025 compliance.
- On May 27, 2021, Automotive Test Systems inaugurated a new testing facility for electric vehicles in Bangalore, India. The new facility would offer various tests for e-axle, electric motors and EV batteries, important components of electric vehicles.
- On September 14, 2020, DEKRA, a multinational automobile testing company based in Germany, has purchased Movon Corporation, a South Korean testing lab. To expand its vehicle testing network, the company intends to utilize Movon Corporation's electromagnetic compatibility (EMC) and radiofrequency (RF) testing laboratories.
The global automotive testing market report would provide approximately 93 tables, 80 figures and 212 Pages.
