China Automotive Testing, Inspection and Certification (TIC) Market – Industry Trends and Forecast to 2030

China Automotive Testing, Inspection and Certification (TIC) Market, By Application (Chassis and Body Controller, Cockpit Controller, and Functional Safety), Supply Chain (Design, Production, Distribution, Selling, and Operation), Sourcing Type (In-House and Outsourced), Type (Electrical Systems and Components, Electric Vehicles, Hybrid Electric Vehicles, and Battery Systems, Telematics, Fuels, Fluids and Lubricant, Interior and Exterior Materials and Components, Vehicle Inspection Services, Homologation Testing, and Others) - Industry Trends and Forecast to 2030.

China Automotive Testing, Inspection and Certification (TIC) Market Analysis and Size

The market for automotive vehicles is growing rapidly in China, especially for passenger vehicles. China's auto market seems to be the world's biggest, with intelligent functions like internet connectivity and autonomous driving. This is expected to drive sales to increase by 30% by 2025. Although with the growing automotive sales in the country, there is an increase in traffic incidents. The main reason for traffic incidents in China are actions against traffic regulations, including over freight and speed, fatigue driving, and vehicle malfunctions. In recent years, the government has been strengthening large-scale inspections of safety measures during long-distance passenger transportation rush periods, thus containing frequent heavy traffic accidents and effectively controlling the rise in the death toll claimed by traffic accidents. However, in another aspect, with the increase in vehicle population, the death toll caused by accidents or vehicle collisions has increased.

Data Bridge Market Research analyses that the China automotive testing, inspection and certification (TIC) market is expected to grow at a CAGR of 4.8% from 2023 to 2030. Government to implement strict and mandatory safety standards to be followed by vehicle manufacturers, which has been increasing over the years.     

Market Definition

The automotive testing, inspection, and certification (TIC) market is a specialized sector within the automotive industry that provides essential services to ensure the safety, quality, and compliance of vehicles and automotive components. This market encompasses a range of activities, including testing, inspection, and certification services that play a crucial role in enhancing product reliability, mitigating risks, and meeting regulatory requirements.

In the TIC market, testing services involve comprehensive evaluations of automotive products, systems, and materials to assess their performance, durability, and adherence to industry standards. This includes inspections of manufacturing plants, supply chain audits, quality control checks, and pre-shipment inspections. Additionally, certification services involve the issuance of official certifications and approvals that validate the compliance of automotive products and processes with relevant regulations and standards.

China Automotive Testing, Inspection and Certification (TIC) Market Dynamics

This section deals with understanding the drivers, restraints, challenges, and weaknesses. All of this is discussed in detail below:

Drivers

• Increasing focus of the government on imposing mandatory safety standards for automotive

The market for automotive vehicles is growing rapidly in China, especially for passenger vehicles. China's auto market seems to be the world's biggest, with intelligent functions such as internet connectivity and autonomous driving. This is expected to drive sales to increase by 30% by 2025.

Although with the growing automotive sales in the country, there is an increase in traffic incidents. The main reason for traffic incidents in China are actions against traffic regulations, including over freight and speed, fatigue driving, and vehicle malfunctions. In recent years, the government has been strengthening large-scale inspections of safety measures. This was during rush periods of long-distance passenger transportation. Thus, having contained frequent heavy traffic accidents and effectively controlled the rise in death toll claimed by traffic accidents. However, in another aspect, the death toll caused by accidents or vehicle collisions has increased with the increase in vehicle population.

• Growing prevalence of automotive

The production and consumption of automobiles are mainly centered on the passenger segment automobiles in China. This has been a major driving factor for the increase in the automobile industry since the 21st century. The growth of the Chinese economy, the vehicle population, especially passenger vehicles with private cars as the mainstay, has been increasing rapidly.

China continues to be the world's largest vehicle market by annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. Based on data from the Ministry of Industry and Information Technology, over 26 million vehicles were sold in 2021, including 21.48 million passenger vehicles, an increase of 7.1% from 2020. Commercial vehicle sales reached 4.79 million units, down 6.6% from 2020. 

Moreover, there is a growing importance for electric vehicles across the globe. Electric vehicles (EVs) are designed to be a promising technology to achieve sustainable transportation with zero carbon emissions, low noise, and high efficiency. Electric vehicles are highly embedded with automotive software and have various benefits concentrated by various countries. This has resulted in formulation regulation, policies, testing, inspection, and certification process to boost electric vehicle quality as it helps control carbon emissions and avoid China warming. 

Opportunity

• Growing trend of electric and ADAS vehicles

Electric vehicles (EVs) are designed to be a promising technology for sustainable transportation with zero carbon emissions, low noise, and high efficiency. Moreover, electric vehicles evolved in the 19th century, but due to a lack of technological advancement, internal combustion engines had a huge demand compared to electric vehicles. During the 20th century, technological advancement was boosted yearly, resulting in developments and innovations that helped reshape electric vehicles.

Moreover, electric vehicles are the key technology to decarbonize road transport. Recent years have seen exponential growth in the sale of electric vehicles with improved range, wider model availability, and increased performance. Passenger electric cars are surging in popularity. In addition, the government of China is supporting the usage of electric vehicles. Governments are providing various policies and formulating rules to promote electric vehicle usage.

Restraint/Challenge

• Varying standards across different regions/countries

Automotive emissions are one of the leading contributors to air pollution. The various exhaust gases from an automobile tailpipe, such as NOx, CO2, and CO, are the primary reasons for polluting the atmosphere and environment, which further leads to cause respiratory and skin diseases in humans.   This has made many countries formulate stringent rules and regulations to reduce emissions.

Furthermore, different countries and regions have implemented norms and have set different standards. Several large state-owned automobile enterprises, such as Beijing Automotive Industry Corp, Brilliance China Automotive Holdings, and many others in China, tried to partner with foreign auto manufacturers. These joint ventures are formed to increase their capacity and enhance their technical capabilities.

However, companies from other countries have different vehicle standards and norms than China. This will create variations in the features of the automobile along with the pricing. Moreover, the government of China is changing the norms and standards frequently.

Recent Developments

• In November 2022, Nemko acquired the remaining shares of Nemko Norlab, making them the company's sole owner. This acquisition aims to enhance collaboration and meet customer needs more effectively, leveraging the market synergies and opportunities observed since the initial share acquisition in June.
• In October 2023, Nemko Germany obtained accreditation from DAkkS in Functional Safety. This development has enabled them to test and assess equipment/systems' functional safety in compliance with international standards and regulations, ensuring the control of hazards and minimizing risks for the safety of individuals, facilities, and the environment. Such recognition helps the company to gain customer attention Chinaly.

China Automotive Testing, Inspection and Certification (TIC) Market Scope

China automotive testing, inspection and certification (TIC) market is segmented into four notable segments based on application, supply chain, sourcing type, and type. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and insights to help them make strategic decisions for identifying core market applications.

Application

• Chassis and Body Controller
• Cockpit Controller
• Functional Safety

On the basis of application, the China automotive testing, inspection and certification (TIC) market is segmented into chassis and body controller, cockpit controller and functional safety.

Supply Chain

• Design
• Production
• Distribution
• Selling
• Operation

On the basis of supply chain, the China automotive testing, inspection and certification (TIC) market is segmented into design, production, distribution, selling and operation.

Sourcing Type

• In-House
• Outsourced

On the basis of sourcing type, the China automotive testing, inspection and certification (TIC) market is segmented into in-house and outsourced.

Type

• Electrical Systems and Components
• Electric Vehicles, Hybrid Electric Vehicles, and Battery Systems
• Telematics
• Fuels, Fluids and Lubricant
• Interior and Exterior Materials and Components
• Vehicle Inspection Services
• Homologation Testing
• Others

On the basis of type, the China automotive testing, inspection and certification (TIC) market is segmented into electrical systems and components, electric vehicles, hybrid electric vehicles, and battery systems, telematics, fuels, fluids and lubricant, interior and exterior materials and components, vehicle inspection services, homologation testing, and others.

Competitive Landscape and China Automotive Testing, Inspection and Certification (TIC) Market Share Analysis

The China automotive testing, inspection and certification (TIC) market competitive landscape provides details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points only relate to the companies focusing on the market.

Some of the major players operating in the China automotive testing, inspection and certification (TIC) market are Nemko, DEKRA, RINA S.p.A., NSF, Applus+, Asia Quality Focus, DNV GL, TÜV SÜD, TÜV NORD GROUP, Intertek Group Plc, MISTRAS Group, SGS Société Générale de Surveillance SA, TÜV Rheinland, Element Materials Technology, The British Standards Institution, Veritell Inspection Certification Co., Ltd, China Certification and Inspection (Group) Co., Ltd., Eurofins Scientific, and HQTS Group Ltd. among others among others.