According to the Market Statsville Group (MSG), the global car proving ground market size is expected to grow from USD 6,261.28 million in 2022 to USD 9,844.82 million by 2033, growing at a CAGR of 4.2% from 2023 to 2033. The increasing government initiatives coupled with the investment in car proving ground. Further, the major market players are using strategic measures to enhance their market share in the global market will further fuel its growth. Increasing car manufacturing will fuel the market’s growth over the forecasting period. Moreover, surging in driver-less cars testing and advanced AI technologies will pave the way for the market’s growth. On the other hand, The high installation cost associated with the establishment of car proving ground, will hamper the growth of the market.
Automobile proving grounds, also known as automotive test tracks, are used for road vehicle testing in the automotive industry. Vehicle manufacturers routinely test the behaviour of automobiles in various locations and traffic circumstances during the automotive development process. The dynamic qualities of cars are often the subject of conventional vehicle testing. In general, test tracks cover the engineering duties of vehicle testing and validation.
A car proving ground is a complex of test and service roads, installations, buildings, and structures which make it possible to conduct the necessary sorts of tests on cars of various types under conditions that guarantee comparability of results obtained at different times and assure the safety of the tests and an absence of obstacles. The automobile proving ground provides rapid circuit roads or speedways for tests involving long runs at high speed; “dynamometric” roads for testing fuel consumption and traction, speed, and braking characteristics; routes with various uneven hard surfaces as well as dirt roads and dirt and stone roads for testing fatigue strength and reliability (durability); and stretches of road with various types of artificial irregularities for testing driving smoothness and maneuverability and for determining the fatigue strength of parts and assemblies.
As a result, the global economy is projected to contract sharply by -3% in 2020. Even, the China one of the major economies for which automotive sector is one of the top pillar industries, witnessed a sharp decline in demand. For instance, according to the China Association of Automobile Manufacturers (CAAM), sales of passenger cars declined 42.4% year over year during that period. SAIC, one of China’s largest manufacturers, reported a 44.9% percent drop year to date in April. Its SAIC-Volkswagen and SAIC-General Motors joint ventures, which comprise the majority of its sales volumes, dropped 50.4% and 47.7% year over year in retail sales from January to April respectively. Such factors negatively affect the demand for the car proving ground market during the COVID-19
However, with ease in COVID-19 guidelines, China sees 1.2% growth. For instance, the automotive sector contributed 9.6% of the total retail sales of consumer goods. The sector also accounted for around 10% of total employment in China (when the entire value chain is considered). This, in turn, contribute in the growth of the market across the China and globe with ease in COVID-19 and restoration of regular activities.
The automotive industry comprises a wide range of companies involved in the design, development, manufacturing, marketing, and selling of motor vehicles. Cars hold a major share of the automotive industry. According to India Brand Equity Foundation, the passenger cars in India, which come among the top car manufacturing countries, hold a significant share of 12.9%. The automotive industry helps in boosting the country's economy; therefore, it catches the eyes of governments of different countries while forming the nation’s budget.
As vehicle testing norms turn more stringent in the global automotive industry, vehicle manufacturers are increasingly testing their new models across various parameters before they are launched. The governments are introducing schemes to strengthen and give a much-desired boost to the Auto Mobile Sector. For instance: In July 2019, The Ministry of Road Transport and Highways (MoRTH) has authorized the usage of the NATRAX (National Automotive Test Tracks) testing facility in Indore for testing vehicles. The decision has been made to ease the workload on the existing vehicle testing agencies. MATRIX is a State-of-art Automotive Proving Ground and provides a one-stop solution for comprehensive testing and evaluation, Research & Development, and Certification to entire automotive and auto component industries. The objective of NATRAX proving ground is to offer world-class testing and evaluation services catering for all categories of vehicles from 2/3 wheelers to heavy commercial vehicles aspect National and International standards. When government takes initiatives like this, it makes companies inspired to grow the industry.
The high installation cost associated with the establishment of car proving ground, will hamper the growth of the market. The car proving ground’s first and most required thing is huge ground initially required for the developing of tracks and hurdles for testing cars. Hence, high prices of real-estate and plot will hamper the growth of the market over the forecasting period.
Furthermore, the ground is then prepared for the car testing it will be covered with various hurdles, pebbles, and other things, which are generally available on regular roads, to ensure the real-time response of the car in any uncertainties on the public roads. This all involves huge latent cost for the service providers. On the contrary, end-users of the market will demand for the less-pricing possible hence, impacting the profitability of the service providers of the market. This, in turn, hampers the growth of the market over the forecasting period across the globe.
Advancing technologies play a crucial role in changing the scenario of the world in all segments, including transportation or vehicles. With the use of technology various car manufacturers such as Mercedes, Google Car, Tesla, and others, have developed autonomous cars. In the world of autonomous vehicles, the AI software stack, the underlying processing hardware, and the sensors together are responsible for its navigation and other autonomous decision-making. With the emergence of such autonomous vehicles/cars (AVs) or connected and autonomous vehicles (CAVs), new proving grounds devoted to self-driving automobiles are required. Conventional test tracks are being converted and used to test highly automated or driverless vehicles. As the AI software is undergoing continuous development and all these versions need to be tested for first, integration stability, and second, as the updated versions may have improved AI modules as compared to any previous versions. This will accelerate the growth of the market over the forecasting period.
Additionally, autonomous vehicle operations need far more rigorous testing and validation than regular vehicle functions. This necessitates a thorough and systematic examination of the functional requirements. Simulations are becoming increasingly important, and proving grounds are being used to validate simulation results. In order to test such autonomous cars, the demand for car proving grounds amplifies, thus, creating lucrative opportunities for the growth of the market over the forecasting period across the globe.
The study categorizes the car proving ground market based on type, and application area at the regional and global levels.
Based on the type, the market is divided into passenger car and commercial car. The passenger car segment is expected to dominate the market share in 2022 in the global car proving ground market. The passenger car segment currently dominates the market share in the car proving ground market. In developed countries, passenger vehicles are among the most frequent types of transportation. In recent years, there has been a remarkable increase in the use of advanced technology such as advanced driver assistance systems (ADAS) in passenger vehicles, which has bolstered this category during the forecasted period. According to World Economic Forum The global number of cars on the road will nearly double by 2040.
Based on the regions, the global car proving ground market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific is projected to account for the highest market share in 2022. The growing automotive industry outlook covers the demand of this market over the forecast period. The market is likely to be driven by increased electric mobility across the region in Asia Pacific. It anticipates that the majority of this transportation expansion will occur in emerging nations such as China and India, while world population is expected to increase by another two billion over the next 25 years to 9.2 billion. Also, rising Prosperity in such places would stimulate demand for formerly considered luxuries such as autos and aeroplanes.
The car proving ground market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
Frequently Asked Questions
Want to Review Complete Market Research Report
Budget constraints? Get in touch with us for special pricing
Request for Special PricingCustomize this Report
Related Reports
DIY Home Automation Market 2022: Industry Size, Regions, Emerging Trends, Growth Insights, Opportunities, and Forecast By 2030
Mar 2024Lingerie Market: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024Fanny Packs Market 2024: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Oct 2024Coffee Machine Market: Industry Size, Growth, Emerging Trends, Regional Analysis, Opportunities, and Forecast By 2033
Mar 2024Electronics Cleaning Brush Market 2022: Industry Size, Regions, Emerging Trends, Growth Insights, Opportunities, and Forecast By 2030
Mar 2024