Adroit Market Research - Industry Insights
Global Automotive Quality Service Market Size by Service Type ( Testing Services, Certifying & Validating Service, Quality Sorting Service), by Application (Electrical and Electronic Components, Telematics, Vehicle Inspection Services, Homologation Testing, Interior & Exterior Materials and Others ) and Geography Forecast 2018 to 2025
Jun 2019
Total Pages: 70
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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.
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.
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
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.
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.
Chapter 1 Report Overview
1.1 Study Scope
1.2 Key Market Segments
1.3 Players Covered
1.4 Market Analysis by Type
1.4.1 Global Automotive Quality Service Market by Type (2014-2025)
1.4.2 Testing Services
1.4.3 Certifying & Validating Service
1.4.4 Quality Sorting Services
1.5 Market by Application
1.5.1 Vehicle Inspection Service
1.5.2 Telematics
1.5.3 Electrical Systems and Components
1.5.4 Homologation Testing
1.5.5 Interior & Exterior Materials
1.5.6 Study Objectives
1.5.7 Years Considered
Chapter 2 Global Growth Trends
2.1 Global Automotive Quality Service Market Size
2.1.1 Automotive Quality Service Growth Trends by Regions
2.1.2 Automotive Quality Service Market Size by Regions (2019-2025)
2.1.3 Automotive Quality Service Market Share by Regions (2014-2020)
2.2 Industry Trends
2.2.1 Market Top Trends
2.2.1.1 Rising trend of digitalisation in automotive TIC industry
2.2.1.2 Electric, Connected Cars and Autonomous vehicles
2.2.2 Market Drivers
2.2.2.1 Rising expectations of consumers for lower price and better quality
2.2.2.2 Regulatory bodies mandating TIC for automotive
2.2.2.3 TIC being non-core business, outsourcing reduces overall cost
2.2.2.4 Globalisation allows access to best-in-class products
2.2.2.5 Digitalization in automotive TIC raises profit margins for a business
2.2.2.6 Increase in vehicle recall demands strict TIC
2.2.3 Market Challenges
2.2.3.1 The high cost of TIC in automotive industry
2.2.3.2 Long lead time required for overseas qualification tests
2.2.4 Porter’s Five Forces Analysis
2.2.4.1 Low Bargaining Power of Suppliers
2.2.4.2 High bargaining power of buyers
2.2.4.3 Moderate to low threat of new entrant
2.2.4.4 Moderate threat of substitutes
2.2.4.5 High Competitive Rivalry
Chapter 3 Market Share by Key Players
3.1 Automotive Quality Service Market Size by Players
3.1.1 Global Automotive Quality Service Market Share by Players (2014-2019)
3.1.2 Global Automotive Quality Service Market Concentration Ratio (CR5 and HHI)
3.1.3 Date of Enter into Automotive Quality Service Market
3.1.4 Mergers & Acquisitions Plans
Chapter 4 Breakdown Data by Type and Application
4.1 Global Automotive Quality Service Market Size by Type (2015-2019)
4.2 Global Automotive Quality Service Market Size by Application (2014-2019)
Chapter 5 United States
5.1 United States Automotive Quality Service Market (2015-2025)
5.1.1 United States Automotive Quality Service Market Size by Type
5.1.2 United States Automotive Quality Service Market Size by Application
Chapter 6 Europe
6.1 Europe Automotive Quality Service Market (2015-2025)
6.1.1 Europe Automotive Quality Service Market Size by Type
6.1.2 Europe Automotive Quality Service Market Size by Application
Chapter 7 China
7.1 China Automotive Quality Service Market (2014-2019)
7.1.1 China Automotive Quality Service Market Size by Type
7.1.2 China Automotive Quality Service Market Size by Application
Chapter 8 Japan
8.1 Japan Automotive Quality Service Market (2014-2019)
8.1.1 Japan Automotive Quality Service Market Size by Type
8.1.2 Japan Automotive Quality Service Market Size by Application
Chapter 9 South East Asia
9.1 South East Asia Automotive Quality Service Market (2014-2019)
9.1.1 South East Asia Automotive Quality Service Market Size by Type
9.1.2 South East Asia Automotive Quality Service Market Size by Application
Chapter 10 India
10.1 India Automotive Quality Service Market (2015-2020)
10.1.1 India Automotive Quality Service Market Size by Type
10.1.2 India Automotive Quality Service Market Size by Application
Chapter 11 Central and South America
11.1 Central & South America Automotive Quality Service Market (2015-2020)
11.1.1 Central & South America Automotive Quality Service Market Size by Type
11.1.2 Central & South America Automotive Quality Service Market Size by Application
Chapter 12 Company Profiles
12.1 Intertek Group plc
12.1.1 Main Business Overview
12.1.2 Financial Performance
12.1.3 Product Offerings
12.1.4 Recent Strategic Initiatives And News
12.2 Bureau Veritas
12.2.1 Main Business Overview
12.2.2 Service Offerings
12.2.3 Recent Strategic Initiatives And News
12.3 CSI S.p.A.
12.3.1 Main Business Overview
12.3.2 Financial Performance
12.3.3 Product Offerings
12.3.4 Recent Strategic Initiatives And News
12.4 National Technical Systems, Inc.
12.4.1 Main Business Overview
12.4.2 Financial Performance
12.4.3 Product Offerings
12.4.4 Recent Strategic Initiatives And News
12.5 Applied Technical Services, Inc.
12.5.1 Main Business Overview
12.5.2 Financial Performance
12.5.3 Product Offerings
12.5.4 Recent Strategic Initiatives And News
12.6 Millbrook Proving Ground Limited
12.6.1 Main Business Overview
12.6.2 Financial Performance
12.6.3 Product Offerings
12.6.4 Recent Strategic Initiatives And News
12.7 Element Materials Technology Ltd.
12.7.1 Main Business Overview
12.7.2 Financial Performance
12.7.3 Product Offerings
12.7.4 Recent Strategic Initiatives And News
12.8 Ashton Technologies and Ashton Automotive Testing
12.8.1 Main Business Overview
12.8.2 Financial Performance
12.8.3 Product Offerings
12.9 Weiss Technik North America, Inc.
12.9.1 Main Business Overview
12.9.2 Financial Performance
12.9.3 Product Offerings
12.9.4 Recent Strategic Initiatives And News
12.1 Idneo Technologies S.L.
12.10.1 Main Business Overview
12.10.2 Financial Performance
12.10.3 Product Offerings
12.10.4 Recent Strategic Initiatives And News
12.11 Magna International Inc.
12.11.1 Main Business Overview
12.11.2 Financial Performance
12.11.3 Product Offerings
12.11.4 Recent Strategic Initiatives And News
12.12 Quality Service Group
12.12.1 Main Business Overview
12.12.2 Financial Performance
12.12.3 Product Offerings
12.13 Dragon Solutions Ltd
12.13.1 Main Business Overview
12.13.2 Product Offerings
12.13.3 SGS SA
12.13.4 Main Business Overview
12.13.5 Financial Performance
12.13.6 Product Offerings
12.13.7 Recent Strategic Initiatives And News
12.14 TRIGO, S.A.
12.14.1 Main Business Overview
12.14.2 Financial Performance
12.14.3 Product Offerings
12.14.4 Recent Strategic Initiatives And News
12.15 Stratosphere Quality LLC
12.15.1 Main Business Overview
12.15.2 Financial Performance
12.15.3 Product Offerings
12.15.4 Recent Strategic Initiatives And News
12.16 Matrix Quality Services, Inc
12.16.1 Main Business Overview
12.16.2 Financial Performance
12.16.3 Product Offerings
12.17 Automotive Quality & Logistics Inc.
12.17.1 Main Business Overview
12.17.2 Financial Performance
12.17.3 Product Offerings
Chapter 13 Market Forecast 2019-2025
13.1.1 Market Size Forecast by Regions
13.1.2 United States
13.1.3 Europe
13.1.4 China
13.1.5 Japan
13.1.6 Southeast Asia
13.1.7 India
13.1.8 Central & South America
13.1.9 Market Size Forecast by Type (2019-2025)
13.1.10 Market Size Forecast by Application (2019-2025)
Chapter 14 Research Findings and Conclusion
Chapter 15 Methodology and Data Source
15.1.1 Research Methodology
15.1.2 Market Size Estimation Methodology
15.1.3 Forecasting Methodology
15.1.4 Scope, definition, and assumptions
Assumptions