Mexico Automotive Testing Market - 2022-2029

Mexico Automotive Testing Market - 2022-2029

Market Overview

The Mexico automotive testing market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 3.7% during the forecast period (2022-2029).

Automotive testing ensures the vehicle model's compliance with local, state and national laws to sell the vehicle in the market. Automobile testing requires producers to demonstrate that their product has been thoroughly evaluated. Testing covers a broad spectrum of vehicle features, from individual component analysis and emissions testing to the buzz, squeak and rattle tests, accident simulations and detailed automotive electronics testing. Performance and endurance testing are also undertaken to ensure that the vehicle can work flawlessly in real-world conditions.

Automotive testing involves putting complete vehicles, components and systems through various laboratory, virtual and real-world tests to ensure safety, reliability and compliance with safety laws. National automotive standards are designed to ensure the quality of vehicles sold in the Mexico market. Automotive testing evaluates the vehicle under testing against the benchmark of national standards and is issued certification accordingly.

One of the major reasons for the growth of Mexico automotive testing market is the growth in production and purchase of passenger vehicles due to rising customer purchasing power. Further, Mexico is the second-largest manufacturer of automotive vehicles globally, hence one of the largest automotive testing markets. In addition, due to cost advantages for OEMs, low automobile penetration levels and rising vehicle production, the market potential in Mexico create market opportunities. Mexico has witnessed strong economic growth in recent years, leading to positive socioeconomic outcomes. The trend is expected to continue in this decade. It will lead to concurrently and significant expansion of the automotive market and the automotive testing market.

Many global testing companies are entering the Mexican market, primarily through collaboration and joint ventures, to cater to the thriving demand for quality automotive testing spurred on by innovation in the automotive sector. The long-term outlook for the Mexican automotive testing market is positive and the demand in the market is expected to remain strong with a significant increase in posterity.

Market Dynamics

The introduction of new laws on vehicle safety is expected to boost the market for automotive testing in the forecast period. However, lacking R&D facilities for automotive testing could be major market restraint.

Introduction of new laws on vehicle safety

In recent years, Mexico has implemented many new laws to ensure minimum vehicle safety and emission standards. For instance, On February 19, 2018, the Mexican government released the NOM-044-SEMARNAT-2017, the final emissions requirements for engines used in heavy-duty trucks, buses and full heavy-duty vehicles. As per this law, all new heavy-duty vehicles sold in Mexico beginning from January 1, 2021, must adhere to the same best-in-class, filter-based requirements as those already in place in the rest of North America and the European Union.

Further, the Mexican government also implemented significantly weaker Euro V and US 2007 options, permitted throughout a two-year transition period in 2019. Similarly, on January 1, 2021, the soot-free requirements became the only choice for regulation. Mexico's compliance with its nationally determined contribution (NDC) to the Paris Agreement of the United Nations Framework Convention on Climate Change is advanced by this legislation (UNFCCC). As part of its NDC, Mexico is the only nation to have committed to reducing black carbon emissions and it has promised to do so by 51% by 2030. The adoption of the program is expected to enhance Mexico's health, lessen air pollution and save lives, along with increasing rigorous pollution and environmental emission tests for automobiles. Similarly, in May 2022, the General Mobility and Road Safety Law, LeyMovilidadSegura, became national law in Mexico after more than eight years of tireless advocacy on behalf of stricter road safety policies.

Introducing these laws impels wide-ranging and exhaustive vehicle testing to ensure regulatory compliance. Therefore, introducing new laws on vehicle safety is a key driver for the Mexico automotive testing market.

Lack of R&D facilities for automotive testing

Although manufacturers focus on innovation and creating the best and most complex features for end customers, it is necessary to consider the risk that these amazing inventions and features may be inaccessible, unsafe or adversely impact a vehicle's quality.

Therefore, automotive testing is necessary to achieve innovation outcomes because consequences such as OEM mass recall can significantly negatively impact people's lives and the company's reputation. Lack of proper testing can also result in financial loss, project escalation, team dissatisfaction, productivity loss and talent loss.

Nonetheless, the importance of automobile testing is sometimes undervalued, misunderstood or largely ignored, but it can be the difference between success and failure.

Since spending in R&D doesn't ensure profitability or good stock performance, it is often overlooked, just as the importance of tight automotive testing. As businesses might still experience bad performance losses even after making significant annual R&D investments and initiatives are only regarded successful when businesses benefit from investing much money in R&D, the investment in automotive testing for R&D facilities is often deemed worthless by OEMs and automotive service providers.

As a result, newer technologies are prevented from being developed in the respective sector, thereby significantly affecting the future growth of the automotive testing market. Therefore, the lack of R & facilities and investments for developing such facilities is a major market restraint for Mexico automotive testing market.

COVID-19 Impact Analysis

After the financial crisis of 2008, Mexico automobile sector grew quickly and was ranked as the fifth manufacturer of auto parts, the seventh largest maker of autos globally and the fourth major exporter before the COVID-19 pandemic. The automotive sector in Mexico has been characterized by its global production networks and fragmented production processes and for corporations looking for locations supporting cost optimization and high-quality manufacturing, Mexico was ideal. As a result, the presence of automotive Original Equipment Manufacturers (OEM) from North America, Europe and Asia in Mexico grew, expanding the country's infrastructure, human capital and domestic market. Because of the factors mentioned above, the automotive testing market in Mexico also experienced a financial boom in the pre-COVID-19 market scenario.

Nonetheless, the Mexico Automotive industry's vigor and expansion ended in March 2020 when the COVID-19 outbreak in North America forced the closure of non-essential economic activity, including the production of automobiles. As per figures from the Mexican Association of Automotive Distributors, manufacturing and exports of automobiles decreased by 98.8% and 90%, respectively, between April 2019 and April 2020. The automotive sales decreased from 98,346 in April 2019 to 34,903 units in April 2020, resulting in a loss of 64.5%. As 63,443 fewer units were made, domestic car sales were severely impacted.

With Mexico Automotive sector's downfall, the automobile testing market in Mexico also went down. Nevertheless, according to INEGI, Mexico automotive exports reached a record-high US$ 15.2 billion in August 2022, up 42.5% yearly and setting a new high. After the COVID-19 pandemic, Mexico automotive exports, which account for 30.1% of the country's total international sales, gradually improved.

Since June 2021, the respective numbers climbed by 859% compared to the same month in the previous year, when many plants suspended their operations due to the pandemic's maximum severity. The annual rise in automotive sales in August 2022 was the biggest in the preceding 15 months.

Segment Analysis

The Mexico automotive testing market is classified based on type, product type, vertical and country.

The ability to eliminate the need for costly and time-consuming road testing if there is a breakdown or an accident has assisted the expansion of the automotive testing market for chassis dynamo meter

A chassis dynamometer is used to gauge how much power and torque a car can generate at its driving tires. An engine dynamometer measures an engine's torque and horsepower at the flywheel. Although this number estimates a vehicle's power, the chassis dynamometer provides a precise power assessment once all parasitic loss has been considered. An engine loses horsepower due to the transmission, rear-end gears, tires and other accessories. A true and accurate horsepower measurement can be obtained using a chassis dynamometer to determine how much power is being delivered to the wheels.

A chassis dynamo meter uses computer software to measure automotive wheel rotation to quantify engine or motor torque. The machine checks every rotating component of the drivetrain and certifies the engine's power and torque. In addition, it can be used to assess performance, noise and safety concerns. The dynamo meter is divided into an inertia dynamo meter and a hydraulic dynamo meter. The inertia dynamo meter is particularly useful for continuous runs. It uses electric motors to turn a flywheel mass, which equals about one-quarter the weight of the test vehicle.

On the other hand, a hydraulic dynamo meter uses a cell or casing filled with hydraulic fluids to increase the engine's or motor's strain. It comprises a fluid reservoir, a hydraulic pump and pipework between the reservoir and pump. In addition, a hydraulic dynamo meter is the most capable of shifting loads quickly. Numerous racing teams have used a chassis dynamometer for years. The development of wheels, transmissions and even the type of gears utilized inside the transmission and drive axles can all be attributed to dynos.

Chassis dynamo meters are relatively expensive. For instance, a typical chassis dynamo meter costs over US$ 10,000 to more than five times that in the global market. However, these testing solutions are now more convenient and cost-effective due to technological advancements such as the power test's eddy-current chassis dynamo meter.

Moreover, a chassis dynamo meter can eliminate the need for road testing. Road testing takes time and might be costly if there is a breakdown or an accident. Eddy current (EC) or water brake load devices commonly use chassis dynamo meters to create loads. Manufacturers are investing in Mexico due to the increased demand for chassis dynamometers. For instance, on October 9, 2020, Mustang Dynamometer, a manufacturer of high-performance chassis dynamometers and related products, announced the launch of a new display facility in Mexico City. To further advertise their goods, manufacturers also attend trade shows and fairs. On July 15, 2022, Mustang Dynamometer took part in Ina PAACE Automechanika Mexico.

Competitive Landscape

The Mexico automotive testing market is huge. It is becoming increasingly competitive due to major players such as SGS SA, Intertek Group Plc, Robert Bosch Gmbh, Anritsu, Siemens AG, D&V Electronics, TÜV RHEINLAND, Dekra, UL Solutions, Rohde & Schwarz GmbH & Co KG, Element and AVL List GmbH. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

Rohde & Schwarz GmbH & Co KG

Overview: Rohde & Schwarz Gmbh produced, developed and sold various electronic goods. Its product offering includes test & measurement, aerospace & defense security, broadcast & media and cyber security. The company has R&D facilities in U.S., Africa, Asia and some European countries. Rohde & Schwarz GmbH & Co KG has an extensive service and sales network presence across over 70 countries. It serves wireless, automotive, aerospace & defense testing, mobile network testing, secure communications, other industry, component and research, among others. The company’s 85% of revenue is generated outside Germany. The company provides testing solutions for automotive, aerospace and defense applications.

Product Portfolio
• Automotive EMC and Full-vehicle Antenna testing: The company’s test and measurement portfolio offers full-vehicle antenna testing for the automotive industry.

It offers customized solutions for verification and vehicle antenna testing. Full-vehicle antenna test systems are another service provided by Rohde & Schwarz to guarantee the best antenna positioning and performance of complete vehicles. These systems can characterize the radiation pattern in three dimensions at all pertinent frequencies.

To perform EMI and EMS measurements on vehicles and components under all major automotive EMC standards, including IEC, CISPR, ISO, UN/ECE and EC directives, as well as with OEM and country-specific test specifications, Rohde & Schwarz offers test and measurement equipment and customizable, turnkey test systems.

Key Development
• On November 24, 2022, AVL and Rohde & Schwarz announced their collaboration to speed up and automate EMC tests under actual driving conditions. AVL and Rohde & Schwarz present an innovative method for automating the analysis of electromagnetic compatibility (EMC) data for an electric drivetrain under actual driving conditions to facilitate and accelerate the development process.

Why Purchase the Report?
• To visualize the Mexico automotive testing market segmentation based on type, product type, vertical and country, as well as understand key commercial assets and players.
• Identify commercial opportunities in the Mexico automotive testing market by analyzing trends and co-development.
• Excel data sheet with numerous automotive testing market-level data points with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The Mexico automotive testing market report would provide approximately 39 tables, 44 figures and almost 342 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

1. Mexico Automotive Testing Market - Methodology and Scope
1.1. Research Methodology
1.2. Research Objective and Scope of the Report
2. Mexico Automotive Testing Market – Market Definition and Overview
3. Mexico Automotive Testing Market – Executive Summary
3.1. Market Snippet by Type
3.2. Market Snippet by Product Type
3.3. Market Snippet by Vertical
3.4. Market Snippet by Region
4. Mexico Automotive Testing Market-Market Dynamics
4.1. Market Impacting Factors
4.1.1. Drivers Introduction of new laws on vehicle safety XX
4.1.2. Restraints Lack of R&D facilities for automotive testing XX
4.1.3. Opportunity XX
4.1.4. Impact Analysis
5. Mexico Automotive Testing Market – Industry Analysis
5.1. Porter's Five Forces Analysis
5.2. Supply Chain Analysis
5.3. Pricing Analysis
5.4. Regulatory Analysis
6. Mexico Automotive Testing Market – COVID-19 Analysis
6.1. Analysis of COVID-19 on the Market
6.1.1. Before COVID-19 Market Scenario
6.1.2. Present COVID-19 Market Scenario
6.1.3. After COVID-19 or Future Scenario
6.2. Pricing Dynamics Amid COVID-19
6.3. Demand-Supply Spectrum
6.4. Government Initiatives Related to the Market During the Pandemic
6.5. Manufacturers Strategic Initiatives
6.6. Conclusion
7. Mexico Automotive Testing Market – By Type
7.1. Introduction
7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Type
7.1.2. Market Attractiveness Index, By Type
7.2. Autonomous and Connected Vehicles*
7.2.1. Introduction
7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%) Dedicated Short Range Communications (DSRC) Testing & Certification Advanced Driver Assistance Systems (ADAS) Testing Track and On-Road Fleet Testing Functional Safety Full Vehicle Homologation Services Others
7.3. Automotive Fluids Dust Separation Test Lubricants & Fuel Systems Testing Fuels / Oils - Engines and Laboratories Others
7.4. Electrical Components and Electronics Accredited EMC Test Battery Test Buzz Squeaking and Rattle (BSR) Durability Testing Electrical and EMC Testing for Automotive Components Environmental Testing Fault Check (FMVT) Noise Measurements (Sones, dB) Durability Test / Life Cycle Altitude Simulation Measuring Technology Automotive Headlamps & Luminaire Testing Protection Against Intrusion/Penetration (IP) Telematics & Wireless Testing Vibration Testing & Analysis Others
7.5. Electro Mobility / Electric Vehicles Automotive Battery and Electric Vehicle Testing Electrical Vehicle Component Testing Services in the Field of Electro Mobility Electric Mobility Charging Infrastructure Interoperability Studies Environmental Performance Battery Safety Testing Others
7.6. Materials and Components - Composites, Plastics and Metals Automotive Materials Weathering Testing Chemical Testing and Analysis Permanent function test Final Product Inspection of Automotive Components Polymers & Plastics Non-Destructive Testing (NDT) Services Quality control Automotive Materials Testing Environmental exposure (-45 ° C to 177 ° C) Automotive Volatile Organic Compound (VOC) Testing Others
7.7. Engine and Gears Engine Research, Development and Emissions Noise measurements (Sones, dB) Gear Test Engine Endurance and Durability Testing Automotive Internal Engine Tests RDE / PEMS Test Dust Separation Process Others
7.8. Environmental Testing Thermal Shock / Mechanical Shock Vibration Testing Dust, Fog, Salt Spray, UV Others
7.9. System Testing Field Performance Data Collection and Analysis Driveline Test (Including Hybrids and eMotors) Fleet Testing Services Dust-Settling Method Others
7.10. Crash Test
7.11. Others
8. Mexico Automotive Testing Market – By Product Type
8.1. Introduction
8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Product Type
8.1.2. Market Attractiveness Index, By Product Type
8.2. Engine Dynamo Meter*
8.2.1. Introduction
8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
8.3. Wheel Alignment Tester
8.4. Chassis Dynamo Meter
8.5. Vehicle Emission Tester
8.6. Transmission Dynamometer
8.7. Fuel Injection Pump Tester
8.8. Advanced Battery Analyzer
8.9. Durability Tester
8.10. Endurance Tester
8.11. Flammability Tester
8.12. Gas Analyzer
8.13. Impact Or Crush Testers
8.14. Torsional Fatigue Tester
8.15. Vibration Tester
8.16. Others
9. Mexico Automotive Testing Market – By Vertical
9.1. Introduction
9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Vertical
9.1.2. Market Attractiveness Index, By Vertical
9.2. Passenger Vehicle*
9.2.1. Introduction
9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
9.3. Commercial Vehicle
10. Mexico Automotive Testing Market – Competitive Landscape
10.1. Competitive Scenario
10.2. Market Positioning/Share Analysis
10.3. Mergers and Acquisitions Analysis
11. Mexico Automotive Testing Market- Company Profiles
11.1. SGS SA*
11.1.1. Company Overview
11.1.2. Product Portfolio and Description
11.1.3. Key Highlights
11.1.4. Financial Overview
11.2. Intertek Group Plc
11.3. Robert Bosch Gmbh
11.4. Anritsu
11.5. Siemens AG
11.6. D&V Electronics
11.8. Dekra
11.9. UL Solutions
11.10. Rohde & Schwarz GmbH & Co KG
12. Mexico Automotive Testing Market – Premium Insights
13. Mexico Automotive Testing Market – DataM
13.1. Appendix
13.2. About Us and Services
13.3. Contact Us

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