Testing, Inspection, and Certification (TIC) Market Key Profiles, Driver, Outlook & Competitive Landscape To 2026
Global testing,
inspection, and certification (TIC) market was valued at US$ 182,933.6 Mn in
2018, and is expected to exhibit a CAGR of 5.9% over the forecast period to
reach US$ 310,003.6 Mn in 2027. Europe accounted for 37.1% revenue share in the
global testing, inspection, and certification market in 2018.
Asia Pacific is expected
to account for high market share in the following years, particularly in China
and India. Asia Pacific TIC market growth is driven by increasing environmental
and food safety violations in the region, which have led government agencies to
implement policies that will ensure consumer safety and limit the amount of
environmental deterioration caused due to e-waste. Also, rising international
trade has increased the number of exports from Asia Pacific to Europe. Exports
from emerging economies of Asia Pacific have to clear detailed estimation to
meet various standards set by governing authorities in Europe and North America,
which is expected to drive the TIC market growth in Asia Pacific.
Use of digital technology
in the TIC market
The current trend in the
testing, inspection, and certification market is use of digital technology.
Companies such as SGS, Intertek, and Bureau Veritas are focused on the adoption
of digital technology, which is expected to boost the market growth. TIC
companies are also focused on verifying security, performance, and safety of a
product, process, or a service. There are two types of product verifications,
1) before product launch and 2) while the product is in use or in service.
These verifications are either done in a lab, on-site, or through other
methods. Moreover, outsourcing of TIC services is increasing due to growing
global trade and regulatory requirements. As a result, digital technology is
playing an important role in meeting the increasing demand for TIC services.
For instance, mobile
payments, cars and devices connected to the internet, and use of software for
testing and inspection of products has become a common practice in the TIC
industry. Use of smart sensors and cloud connectivity aids instant data
sharing, issuing and creating automated certification report. Furthermore,
digital technology also improves analytical methods and detection limits which
is expected to help TIC companies meet the growing demand for analytics
techniques, better reporting, and greater accuracy.
For instance, in May
2018, Bureau Today announced the publication of ‘The digital asset across
industries – A TIC company perspective’, a position paper that outlined the
importance of companies embarking on digital transformation, in order to define
their needs with regards to new technologies, and decide how to integrate them
in their value chain processes.
Moreover, the Industry
4.0 transformation is expected to allow better management of quality,
integrity, efficiency and performance, and enhance the industrial agility of
companies. It is also expected to strengthen needs in terms of data management
and cybersecurity. This revolution does not solely impact conventional industry
players but all those in the value chain, including TIC companies.
Europe held the dominant
position in the Testing, Inspection, and Certification (TIC) market in 2017
Europe is expected to be
the largest market in terms of size during the forecast period. The major
factors driving the growing demand for TIC services in the region are
technological advancements in the automotive industry and outsourcing of TIC
services. Also, increasing trade of consumer products is expected to drive
growth of TIC market in Europe. Organizations such as the European
Telecommunications Standards Institute, and European Committee for
Standardization are developing new rules and regulations such as those listed
under the Construction Products Directive to maintain product safety and limit
the flow of counterfeit products. Key players in the market such as Test Pro,
Testing Solutions Group Ltd, and Testhouse Ltd. are driving the market growth
by providing assurance and testing services. Also, Brexit, the withdrawal of
U.K. from European Union, added new channels for free trade and communication,
which has led to higher opportunities for offshore businesses to conduct trade
in the U.K. However, different regulations for trade such as import tariffs and
regulation or discrimination against foreign suppliers within and outside the
European Union are restraining growth of the TIC market in Europe.
Lack of commonly
accepted international standards by countries is one of the major factors
hampering growth of the global testing, inspection, and certification market.
The standards of testing, inspection, and certification to safeguard consumers
from unsafe and non-compliant products and services vary according to
countries. Companies which provide TIC services need to follow these varying
standards, which leads to an increase in the cost of operation, in addition to
other expenses. Moreover, the complex nature of the supply and value chain, as
well as the uncertainties in macroeconomics is another factor hindering growth
of the testing, inspection, and certification market.
Furthermore, scarcity of
skilled workforce, and lack of global certification standards is also expected
to restrain the market growth. Increasing globalization and import-export
activities leads to high demand for product testing, inspection, and
certification. However, varying quality and testing methods and lack of global
certification standards hinders the market growth. Moreover, countries in Asia
Pacific and Middle East are experiencing a shortage of skilled workforce. For
instance, according to Coherent Market Insights’ analysis, in India, out of the
total labor force, only around 5% are skilled workforce.
Global Testing,
Inspection, and Certification (TIC) Market: Key Players
Major players operating
in the global testing, inspection, and certification (TIC) industry include SGS
Group, Bureau Veritas SA, TUV Rheinland Group, Intertek Group PLC, ALS Limited,
DNV GL, MISTRAS, Lloyd’s Register Group Limited, Underwriters Laboratories
Inc., ABS Group, and ASTM International.
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