The global automotive quality service market was valued at USD 17.99 Billion in 2018. The major drivers of this market include the growing automotive industry in terms of electrification, electric vehicles and new technology adoption. Technologies such as connected cars, electric vehicles and autonomous vehicles are making a lot of buzz in the automotive industry. It is believed that 90% of autonomous and connected vehicles will be electric vehicles by 2035
.png "Global Automotive Quality Service Market Revenue, 2017 to 2025 (USD Billion)")
The electric vehicles demand is increasing globally. Increasingly stringent government regulations to control vehicle emissions and growing need to curb the pollutions levels at global level are the factors responsible for increasing demand for electric vehicles. The electric vehicles do not have similar parts as the normal IC engine vehicles. The parts differ and so does the electric vehicle testing, inspection and certification regulations and standards. This is applicable to the autonomous vehicles as well. As autonomous vehicles are driverless vehicles thus consists of a lot of sensors, software’s and electronics embedded in them. The increase in amount of software’s along with hardware suggests the requirement of software TIC market growth for automotive alongside the hardware TIC market.
The market for automotive QSM is highly fragmented. Top 3 companies share about 25% of the market share whereas top 10 cover almost about 55% to 65% of market share. Most of the market is concentrated in Europe, and North America as the countries present in these regions are highly advanced and have strict environmental and automotive TIC regulations. Recently Europe decided to adopt the world wide harmonized light vehicles test procedure (WLTP) replacing New European Driving Cycle (NEDC) to avoid emission scandals like VW.
Automotive Quality Service Market Scope
| Metrics | Details |
| Base Year | 2019 |
| Historic Data | 2017-2018 |
| Forecast Period | 2020-2025 |
| Study Period | 2015-2025 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2025 | USD 17.99 Billion |
| Growth Rate | CAGR of 6.42 %during 2021-2028 |
| Segment Covered | Type, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, Rest of the World |
| Key Players Profiled | Intertek, Bureau Veritas, CSI S.p.A, National Technical Systems, Inc, Applied Technical Services, Inc, Millbrook Proving Ground Limited, Element Materials Technology Ltd, Ashton Technologies and Ashton Automotive Testing, Weiss Technik North America, Inc, Idneo Technologies S.L along with others. |
Key Segments of the Global Automotive Quality Service Market
Type Overview, 2015-2025 (USD Billion)
- Testing Services
- Certifying & Validating Service
- Quality Sorting Service
Application Overview, 2015-2025 (USD Billion)
- Electrical Systems and Components
- Telematics
- Vehicle Inspection Services
- Homologation Testing
- Interior & Exterior Materials
- Others
Regional Overview, 2015-2025 (USD Billion)
- North America
- USA
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of APAC
- Latin America
- Brazil
- Rest of Latin America
- Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global automotive quality service market. To Benchmark yourself against the rest of the market.
- Be prepared for how outsourcing trends and the global automotive quality service market will be impacted by socio-political and economic factors over the next few years
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
What does the report include?
- The study on the global automotive quality service market includes qualitative factors such as drivers, restraints, and opportunities
- Additionally, the market has been evaluated using the Porters 5 Forces and Value Chain Analysis.
- The study covers qualitative and quantitative analysis of the market segmented on the Application, service type, industry and region. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
- The study includes the profiles of key players in the market with a significant global and/or regional presence.
Who should buy this report?
This study is suitable for industry participants and stakeholders in the global automotive quality service market. The report will benefit:
- Executives of automotive quality service companies that are engaged in the outsourcing.
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to the global automotive quality service market.
- Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative global automotive quality service solutions.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
The global automotive quality service market stood at USD 17.99 billion in 2018 and is expected to reach USD 31.79 billion by 2025. The expected CAGR from 2018 to 2025 is 7.23%.In the coming few years following trend are expected to dominate the AQS market
Disruption along the value chain
The changes along the value chain will not be driven by the existing players but by the new comers as well. The electric vehicle component suppliers and application & software developers will enter at the beginning of the chain. The parts distribution market will be disrupted by the e-commerce and other digital players. These developments will lead to increase in transparency in pricing model of the components for customers across the value chain.
OEM’s should try to strengthen their core strengths in aftermarket
In order to maintain their dominance in the market the OEM’s should try to become more customer centric and enhance their approach towards customers. OEM’s should try to adopt multichannel strategies for serving their customers. As the number of older vehicles is growing the demand of aftermarket components is expected to increase in the emerging markets. Hence OEM’s should try to focus more after market as well.
Suppliers should explore alternative sales and pricing strategies
Suppliers should try to explore new strategies to explore the market and increase their customer reach. Suppliers should develop additional sales channels and adopt e-commerce strategies which can help them save on logistics and improve their service.
Type Segment
On the basis of types, global automotive quality service market segmented into testing, certification and quality sorting services. Testing segment attained a value of USD 7.45 billion in 2018 and is likely to maintain the graph in the forecast period. The testing activities mainly focus on measuring the properties and performance of the products and services. The growth of the market is attributed to the rising concern among consumer regarding the quality of the product. This rise in the conscious consumerism is encouraging companies to protect their reputation by maintaining the quality of the products and by adhering to government standards and regulations.
.png "Global Automotive Quality Service Market, for Testing, 2015-2025 (USD Billion)")
Application Segment
Based on applications, the global automotive quality service market is divided into 5 major segments. Vehicle inspection services segment is likely to dominate the market in 2025 owing to growing demand for regulations and standards for the growing electrical and autonomous vehicles market. The growing electrical vehicle and connected cars market has led to increase in use of ADAS based features, increasing the implement of sensors, software’s and coding in automobiles. This increased implementation of IT based software’s and hardware’s is expected to increase the demand for TIC market for software’s in automobiles. This development has led to increase in market for vehicle inspection services and electrical systems and components market.
The global automotive quality service market was dominated by North America and Europe in 2018. The market share occupied by North America and Europe in 2018 was 32.47% and 35.89% respectively. Presence of stringent regulations and huge amount of spending on R&D activities are responsible for dominance of Europe and North America.
.png "United States Automotive Quality Service Market, 2014-2025 (USD Billion)")
Latin America and Asia Pacific is expected to have the fastest growth rate growing at a CAGR of 8.15% and 8.27% respectively for the AQS market with presence to emerging markets such as India, China, Brazil, Mexico and other countries.
The major players of global automotive quality service market includes Intertek, Bureau Veritas, CSI S.p.A, National Technical Systems, Inc, Applied Technical Services, Inc, Millbrook Proving Ground Limited, Element Materials Technology Ltd, Ashton Technologies and Ashton Automotive Testing, Weiss Technik North America, Inc, Idneo Technologies S.L along with others . Most of the market players are participating in mergers and acquisitions to be on competitive advantage of the market. Recently, another large Acquisition occurred, TRIGO Group acquired EMC Consulting, a top Romanian quality training company. By combining expertise, the merge aims to spear-head quality improvements for customers’ production processes.