The widespread adoption of electric vehicles globally implies the need for stringent testing, inspection, and certification of electric vehicles. The demand has also increased because of the increasing need for reducing emissions contributing to global warming. Electric vehicle manufacturers and component suppliers have to ensure that the product meets the global and regional standards and regulatory requirements, making inspection, testing, and certification a critical step.
The electric vehicle testing, inspection, and certification market is projected to reach $4,038.2 million by 2031 from $1,104.7 million in 2022, growing at a CAGR of 15.49% during the forecast period 2022-2031. The growth in the electric vehicle testing, inspection, and certification market is expected to be driven by technological advancements in electric vehicle systems and increasing sales of electric vehicles around the world.
Electric cars were created to replace conventional modes of transportation, which pollute the atmosphere. Due to various technological advances, electric cars have grown in popularity. Electric vehicles (EVs) outperform conventional vehicles in terms of fuel economy, greenhouse gas emissions, and maintenance, as well as the ease of charging at home, a smoother ride, and reduced engine noise. Battery, hybrid, and plug-in hybrid electric cars are the three varieties of electric vehicles. Furthermore, electric cars do not need engine oil adjustments, but they are marginally more costly than their gasoline counterparts.
Global Electric Vehicle Testing, Inspection, and Certification Market by Application
The application segment of the EV testing, inspection, and certification market is segmented into safety and security, connectors, communication, and EV charging. Most of the regulatory standards that are in place across major countries are mainly focused on improving the safety of electric vehicles.
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Global Electric Vehicle Testing, Inspection, and Certification Market by Product
The product segment of the EV testing, inspection, and certification market is segmented into service type and sourcing. The service type is further categorized into testing, inspection, and certification; and the sourcing segment is further categorized into in-house and outsourcing. Among these, testing accounted for the largest market share in 2020 and is expected to dominate the market in the given forecast period as well, driven by stringent government regulations and standards.
Digital Segment to Dominate the Electric Vehicle Testing, Inspection, and Certification Market
The digital segment in the electrical vehicle testing, inspection, and certification market would generate the largest demand owing to the technological advancement of the automotive testing industry. With the advent of digital simulation, the physical approach for testing, inspection, and certification can be reduced significantly which would be more cost effective and reliable.
Global Electric Vehicle Testing, Inspection, and Certification Market by Region
The regional segmentation of the EV testing, inspection, and certification market is done on the basis of North America, South America, Europe, China, U.K., Middle East and Africa, and Asia-Pacific and Japan. Europe held the largest share in terms of value generation in FY2020. This is primarily due to the growth of the electric vehicle market in the region and the presence of various testing, inspection, and certification providers in the region.
Competitive Landscape
The competitive landscape of the electric vehicle testing, inspection, and certification market consists of different strategies undertaken by major players across the entire value chain to gain market presence. Some of the strategies adopted by the service providers are product launches, market developments, mergers and acquisitions, partnerships, and collaborations. Among all the strategies, market developments have dominated the competitive landscape.
Most of the service providers are of similar financial capability, and the industry landscape is quite competitive because of the large number of players in the market. Therefore, innovation and development have been the key factors for the large-scale growth in this market. The electric vehicle testing, inspection, and certification service providers are expanding their businesses and are also entering strategic partnerships to target a greater audience and increase their overall footprint.
