The global testing, inspection and certification (TIC) market was accounted for USD 278.7 billion in the year 2018 and projected to grow with a CAGR of 5.2% over the forecast period, from 2019 to 2025. Growing outsourcing of TIC services is anticipated to be a major factor for the market growth in near future. Independent TIC services providers play an important role to support government mandates for protecting consumers from harmful and unsafe products.
For example, before supplying products in the market the Consumer Product Safety Improvement Act needs third-party certification & testing of products in the U.S. Similarly, European Union mandated the assessment of some product categories by Notified Bodies which are attributed independent TIC companies.
Advent of digital technologies is anticipated to play a vital role in the market growth. Several TIC activities are operating digitally, which is expected to boost market growth. Various technologies such as next-generation automation, smart sensor, cloud & cybersecurity, blockchain and augmented reality play an important role in offering enhanced TIC services. Additionally, intelligent sensors integrated into the products allow remote monitoring and inspection. This factor helps in security & safety checks which can assist in predictive maintenance. Several key players are adopted the application of online monitoring in elevators, pressure vessels and other hardware components.
The trend of digitalization delivers a massive amount of data that will allow inspection, testing, & inspection vendors to develop new value-added services. Moreover, TIC service revenue for products like internal-combustion vehicles and car emissions is projected to drop in the near future. On the other hand, revenues from digital products are expected to fuel the market growth.
Further, several initiatives like renewable energy generation projects taken by governments across the globe are expected to boost the market growth. For example, China has announced to invest around USD 360 billion in renewable energy generation by the end of 2020. Such investments are expected to augment the market demand in emerging countries.
Based on service types, the TIC market is segmented into inspection, testing, and certification. Testing service type segment is projected to gain significant market share during the forecast period. This is due to rising demand for this service across several industries such as construction, automotive and manufacturing. Testing service helps to analyze the safety and quality of materials, chemicals, components and consumer electronic products. The market is expected to witness considerable growth due to rising number of investments by prominent players.
Inspection service is projected to grow with the fastest CAGR over testing service from 2019 to 2025. Growing infrastructure and construction development projects, especially in emerging nations is expected to boost the segment growth. Moreover, rising focus of customers on safety and quality about food products, consumer’s goods, and electronic appliances are expected to have a positive impact on market growth.
Certification services are expected to register the fastest growth during the forecast period. This growth is attributed to the growing demand for gaining mandatory certifications like China Compulsory Certification (CCC), CE Certification, China Energy Label Certification (CEL), and Energy Label Certification (CEL) across several verticals is expected to drive the segment growth. Rise in voluntary certifications for some products like voluntary certifications, green products and pollution-free agricultural products. This is due to rising awareness regarding the safety and quality of products and the growing green economy.
Based on sourcing type, the market is fragmented into outsourced and in-house. Outsource segment is projected to grow with a higher growth rate during the forecast period. This growth is attributed to the rising number of standards and regulations, growing cost of testing & certification of products, and the in-house inspection. Hence, numerous players have started to outsource TIC services from third-party service providers.
The outsourcing segment is expected to witness a substantial growth due to the mandatory application of various certifications in China and growing third party inspection across the globe. Moreover, growing adoption of TIC services by global companies is expected to fuel the market growth during the forecast period.
On the other hand, in 2018, the in-house sourcing type accounted for the largest market share and anticipated to retain its dominant position during the forecast period. In-house sourcing allows manufacturers to control TIC processes directly.
By applications, the TIC market is fragmented into government, agriculture and food, chemicals, aerospace and defense, infrastructure, education, consumer goods and retail, manufacturing, petroleum, healthcare, oil and gas, energy and power, public sector, automotive, and supply chain &logistics, mining, and others.
In 2018, infrastructure accounted for significant market share due to growing demand for TIC services for development of transportation facilities including railways and roadways. TIC services play an important role in these sectors and expected to open new avenues for market growth over the forecast period. Moreover, in economically developing countries, the demand for up-gradation of infrastructure is increasing which is expected to have a positive impact on segment growth, this is expected to fuel the market growth in the next few years.
Emergence of new technologies plays an important role in reshaping the TIC industry such as in infrastructure and construction industry, predictive maintenance is using digital inspections systems. In addition, introduction of new technologies ranging from drones to big data is expected to open new market growth opportunities by expanding geographical business and maintaining existing client relationships.
Various market players such as Bureau Veritas, Dekra, and SGS have implemented digitalization by investing in enhancing digital TIC solutions like incorporating advanced analytics through inspection services, adoption of IoT devices, and drones to capture real-time information in infrastructure and manufacturing industries and other applications. The role of TIC services is anticipated to change due to the advent of digital technologies including artificial intelligence, connected vehicles, commented devices, and mobile payments.
In 2018, Asia Pacific held the largest market share of 30.0% in terms of revenue. This high revenue share is attributed to growing regulatory and economic factors in this region. Asia Pacific is characterized by the largest population having high investment in automation, increasing purchasing power coupled with stringent government norms for adopting TIC services are some major factors to surge the market growth in this region. In addition, rising development of renewable power generation projects is also projected to propel the demand for the market in this region. For example, from 2016, China is investing more than USD 100 billion every year in order to develop renewable energy sources which are twice investment of U.S. expenditure. In India, market is expected to have potential growth, as the country has the world’s largest plan of 225 GW for renewable power by the end of 2022. This renewable energy comprises 5GW from small hydropower, 100GW from solar energy, 60GW from wind power. Such investment in renewable energy is projected to fuel the regional market growth in the next few years.
Though TIC services play an important role across several end-use industries, currently they are gaining traction in the healthcare sector due to the growing spread of COVID-19 outbreak. Several companies have increased their production of medical equipment such as masks, drapes, and PPE kit, which is expected to provide ample opportunities to market players for market growth.
In hospital environments, health staff’s clothes give safety barriers among patients and themselves. Thus, masks and gowns that are made by medical textiles should comply with certain standards to ensure the safety of products. Market players in TIC services are providing high standard quality assurance throughout the supply chain.
The major players operating in this market Element Materials Technology; DEKRA SE.; Eurofins Scientific; Applus+; MISTRAS Group, Inc.; Intertek Group plc; SGS SA; Intertek Group plc; SGS SA; Eurofins Scientific; and TÜV SÜD.
Market players are concentrating on gaining the customer base to sustain the competitive edge in the market. Hence, major players are adopting several strategies such as merger & acquisition, partnerships, and collaborations. For example, in 2018 Intertek Group plc.entered in partnership with the Shanghai Institute of Quality Inspection and Technical Research.
Base year for estimation
2014 - 2017
2019 - 2025
Revenue in USD Billion and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, Germany, U.K., France, Italy, Russia, China, Japan, India, South Korea, Australia, Brazil, Argentina, Saudi Arabia and UAE.
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global testing, inspection and certification market report based on service type, sourcing type, application, and region:
• Service Type Outlook (Revenue, USD Billion, 2014 - 2025)
• Sourcing Type Outlook (Revenue, USD Billion, 2014 - 2025)
• Application Outlook (Revenue, USD Billion, 2014 - 2025)
• Consumer Goods & Retail
• Agriculture & Food
• Energy & Power
• Oil & Gas and Petroleum
• Public Sector
• Aerospace & Defense
• Supply Chain & Logistics
• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
• North America
• Asia Pacific
• South Korea
• South America
• Middle East & Africa
• Saudi Arabia
Research Support Specialist, USA