As electric vehicles (EVs) continue to gain traction globally, the demand for testing, inspection, and certification (TIC) services for these vehicles is soaring. With concerns over climate change and the adverse effects of conventional vehicles, the market for TIC services is expanding rapidly, offering both challenges and opportunities for automakers and service providers.
Market Growth Driven by Increasing EV Adoption
The rise of EVs as an alternative to traditional gas-powered vehicles has led to an increase in demand for TIC services worldwide. Stricter environmental regulations, coupled with the growing awareness of the benefits of EVs—such as improved fuel economy, lower greenhouse gas emissions, and reduced engine noise—are driving the market. EVs, including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs), are becoming increasingly popular as automakers invest heavily to meet the escalating demand.
The electric vehicle market is seeing substantial investments from automakers, who are eager to tap into the growing interest. Battery prices, a key component of EV production costs, are expected to decrease over time, making EVs more affordable and accessible to a broader consumer base.
Surging Demand for TIC Services in Emerging Economies
The global TIC market for EVs is highly competitive, with key players like DEKRA SE, SGS Group, TUV SUD, and Bureau Veritas S.A. vying for market share. Emerging economies such as China and India present lucrative opportunities, as these regions are seeing rapid economic growth and a rising demand for certified, high-quality EV products. Countries within the BRICS group—Brazil, Russia, India, China, and South Africa—are especially significant contributors to this growth, with expanding middle-class populations driving the need for stringent safety and quality checks.
Regional Insights: Europe Leads the Market
Europe holds the largest share of the global electric vehicle TIC market, with an estimated compound annual growth rate (CAGR) of 13.94% over the forecast period. The region’s dominance is fueled by strict government mandates for EV certification and heightened consumer awareness of safety standards. Recent safety issues with major automakers like Volkswagen and BMW have underscored the importance of independent testing and certification services, driving the demand for third-party evaluation.
Meanwhile, North America is projected to exhibit a CAGR of 11.93%, as emerging technologies and tough environmental regulations reshape the industry. The rising need for periodic inspection and testing in the region is also contributing to market growth. Companies such as Bureau Veritas have announced plans to hire thousands of new employees in the United States to meet the increasing demand for testing, inspection, and certification services.
Key Market Segments Highlight Growth Opportunities
The global electric vehicle TIC market is segmented by application, service type, and source. The safety and security segment, which encompasses services to ensure the safe operation of EVs, is expected to grow at a CAGR of 14.23%. Testing remains the largest segment by service type, with a CAGR of 15.03%, as automakers focus on ensuring their vehicles meet stringent safety and performance standards.
Outsourcing has emerged as the dominant sourcing strategy for TIC services, projected to grow at a CAGR of 14.95%. This trend reflects a shift among automakers to leverage the expertise of external service providers for critical safety and compliance testing.
Recent Developments and Future Outlook
The competitive landscape is marked by significant investments and strategic partnerships. In March 2023, UL Solutions announced plans to establish a new battery testing laboratory in Auburn Hills, Michigan, which will be one of the most advanced facilities in North America. Similarly, Contemporary Amperex Technology Co., Limited (CATL) partnered with UL Solutions to promote safer deployment of battery energy storage systems and EV batteries.
As the electric vehicle industry continues to expand, the importance of reliable testing, inspection, and certification services cannot be overstated. These services ensure that EVs meet safety and performance standards, enabling automakers to build consumer trust and meet regulatory requirements in various markets. With continued innovation and collaboration, the EV TIC market is set for robust growth, supporting the global transition to a cleaner, more sustainable mode of transportation.
