Automotive Quality Service Market Definition And Segments
Automotive quality service encompasses a range of activities and processes aimed at ensuring that vehicles manufactured by automotive companies meet high-quality standards and regulatory requirements. The purpose of automotive quality service is to enhance customer satisfaction, improve product reliability, and comply with regulatory requirements, ultimately ensuring the safety and performance of vehicles.
The main types of the automotive quality service market are testing services, certifying and validating services, and quality sorting services. Testing services refer to a range of evaluations, inspections, and assessments performed on vehicles, components, and systems to ensure they meet specified standards and performance criteria. The various vehicle types include passenger cars and commercial vehicles. The applications involved are electrical systems and components, telematics, vehicle inspection services, homologation testing, interior and exterior materials, and other applications. The end-users include original equipment manufacturers (OEMs), tier 1 and tier 2 suppliers, aftermarket service providers, and regulatory authorities.
The automotive quality service market covered in this report is segmented –
1) By Type: Testing Services, Certifying And Validating Services, Quality Sorting Services
2) By Vehicle Type: Passenger Cars, Commercial Vehicle
3) By Application: Electrical Systems And Components, Telematics, Vehicle Inspection Services, Homologation Testing, Interior And Exterior Materials, Other Applications
4) By End-User: Original Equipment Manufacturers (OEMs), Tier 1 And Tier 2 Suppliers, Aftermarket Service Providers, Regulatory Authorities
The automotive quality service market size has grown strongly in recent years. It will grow from $24.19 billion in 2023 to $26.40 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to stringent government regulations regarding vehicle safety, rising consumer expectations, globalization of automotive supply chains, increasing competition among automotive manufacturers, and growth of the aftermarket sector.
The automotive quality service market size is expected to see strong growth in the next few years. It will grow to $37.93 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to rise of electric vehicles (EVs) and autonomous vehicles, increasing adoption of industry 4.0 technologies, increasing use of data analytics and artificial intelligence, demand for high quality and reliability, and globalization of the automotive industry. Major trends in the forecast period include innovation in vehicle technologies, integration of advanced driver assistance systems (ADAS), 3D printing and advanced manufacturing, partnerships with technical schools and automotive academies, and predictive maintenance and AI.
Rising Vehicle Production Boosts Automotive Quality Service Market
The increasing vehicle production is expected to propel the growth of the automotive quality service market. Vehicle production is increasing due to several factors such as economic growth, globalization, government incentives, and increasing consumer purchasing power. Automotive quality services are essential for ensuring that vehicles meet the highest standards of quality, safety, and reliability throughout the production process. For instance, in May 2023, according to the European Automobile Manufacturers Association, a Belgium-based trade association, in 2022, global motor vehicle production reached 85.4 million units, marking a 5.7% increase compared to the previous year. Therefore, increasing vehicle production is driving the growth of the automotive quality service market.
Major companies operating in the automotive quality service market are Dragon Solutions Ltd., Bureau Veritas, Intertek Group plc, Alten Group, FEV Group GmbH, Horiba Ltd., Applied Technical Services Inc., Bertrandt AG, ARRK Product Development Group Ltd., EDAG Group, Altair Engineering Inc., TRIGO S.A., Stratosphere Quality LLC, ESG Elektroniksystem- und Logistik-GmbH, National Technical Systems Inc., Millbrook Proving Ground Limited, Matrix Quality Services Inc., Weiss Technik North America Inc., CSI S.p.A., Automotive Quality & Logistics Inc., Ashton Technologies Inc., Element Materials Technology Ltd., Quality Service Group, ASAP Holding GmbH, Dragon Solutions Ltd.
Contactless Service Enhances Safety And Convenience In Automotive Quality Service Market
Major players in the automotive quality service market are prioritizing the development of innovative solutions, such as hassle-free vehicle service, to enhance customer experience, streamline operations, and improve overall service quality. Hassle-free vehicle service denotes a seamless and convenient process for vehicle maintenance, repairs, and servicing, minimizing inconvenience for vehicle owners. For instance, in June 2021, BMW India, a subsidiary of the renowned German car manufacturer BMW, launched a contactless service for vehicle servicing. This initiative enables customers to engage in various activities, including exploring and purchasing new and pre-owned BMW cars, scheduling vehicle services, and conducting secure online transactions, all through the BMW Contactless Experience platform. Following service, the sanitized vehicle is delivered to the customer's preferred location, aligning with local government directives for safety. This innovative service aims to reduce customer interaction while enhancing safety and convenience throughout the vehicle servicing process.
HCl Tech's Acquisition Of ASAP Group Strengthens Automotive Engineering Capabilities
In September 2023, HCL Technologies Limited, an India-based information technology company, acquired ASAP Group for $279 million. Through this acquisition, HCL Tech aims to bolster its automotive engineering capabilities, particularly in autonomous driving, e-mobility, and connectivity, through ASAP Group's diverse service portfolio spanning electrics, software, and vehicle development. ASAP Group is a Germany-based automotive engineering services provider, offers automotive quality services.
North America was the largest region in the automotive quality service market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive quality service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automotive quality service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automotive quality service market includes revenues earned by entities by providing services such as advanced product quality planning, quality audits and assessments, supplier quality management, product quality inspections, and root cause analysis and related quality management software (QMS), supplier quality management tools, and quality auditing tools. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The automotive quality service market research report is one of a series of new reports from The Business Research Company that provides automotive quality service market statistics, including automotive quality service industry global market size, regional shares, competitors with an automotive quality service market share, detailed automotive quality service market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive quality service industry. This automotive-quality service research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.