Testing, Inspection, and Certification Market Size, Share

[588 Pages Report] The global testing, inspection, and certification (TIC) market size is expected to reach USD 233.2 billion by 2024 and USD 280.6 billion by 2029, at a CAGR of 3.8% during the forecast period. The testing, inspection, and certification market is currently performing well due to growing government regulations in destination markets like rising food safety and automotive. This growth is largely based on increased product safety and environmental protection concerns and on-hook digital transformation processes. Organisations are doing all legal requirements in order to reinstate compliance to safety standards in the efforts to raise the stakeholders' confidence and in propagating international trade. Among the most relevant technology trends that are currently revolutionizing industries and creating new opportunities for TIC providers are smart sensors, cloud services, and blockchains. Under its Ascendant strategy, KKR is committing a funding up to USD 250 million in TIC outsourced services. Thus, the outlook for TIC's substantial growth is impended, emphasizing technological advancement and greenness, more so now when global trade pays growing attention to quality and safety.

Testing, Inspection, and Certification Market Forecast to 2029

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Market Dynamics:

Driver: Increasing need for interoperability testing owing to the growing adoption of IoT

The use of connected technologies for improving operational efficiency and production throughput in the manufacturing industry and the rising need to verify IoT-connected products for data and product safety are fueling the TIC market. However, the utilization of IoT and connected devices creates higher profit margins for companies and manufacturers, as well as big challenges and risks for developers and manufacturers who face escalating data breaches. In this regard, manufacturers are focusing on the safety of the connected devices and the overall information of users. Thus, the TIC industry is learning to address cybersecurity threats and implement basic sets of Guidelines and Standards such as ANSI/UL 2900, IEC 62443, NIST Cybersecurity Framework, and many more. The propagation of personal lot devices, including the fitness wearable accompanied by the ecosystem-empowered smart home devices, has changed the relationship patterns for customers, enterprises, and CSPs. They enable automation and flexibility in many business processes, hence implying that adequate testing must be carried out to enhance security connections and functionality. In this connected environment, the Global players are redesigning their quality assurance & testing strategies by adopting both centralized as well as decentralized models in order to handle a multitude of interconnections and changes in the development paradigms of products.

Restraint: Lack of uniformity in global TIC standards

Heterogeneity in TIC standards across different countries presents a major challenge since it affects the operations of companies that undertake business in this segment. Different nations and regions may also follow different standards, rules, and regulations for compliance, making the process difficult for TIC service-providing firms. Lack of standardization brings some difficulties in terms of managing regulatory environments, trading internationally, and conforming to different requirements in different countries. Moreover, it can slow down the certification and approval processes of products and services may affect efficiency as well as restrict the firm’s market development initiatives. Combined, these factors mean that despite the generally high level of TIC adoption, the lack of common standards in many cases remains a considerable issue for international market players who would like to provide the same quality and compliance across their products and services.

Opportunity: Use of blockchain technology in TIC services

The adoption of blockchain technology has the potential to improve the certification processes and achieve better security and effectiveness of the data involved. Some of the elements like immutability, cryptography, and decentralization ensure that the data is protected from being faked, accessed only by authorized persons, and protected against hackers. Merging procedural processes, ensuring faster verification, and minimizing costs, blockchain enhances the procedures for certification, such as product certifications, organic farming, education, and sustainability. However, some factors like technology maturity, regulatory issues, and user acceptance must be faced prior to embracing it. For example, in the context of testing, inspection, and certification (TIC) services, blockchain fortifies data security and privacy via cryptographic science and a decentralized database, thus eradicating risks such as data theft and piracy. It also fosters transparency since the transaction history, which is difficult to alter, can provide insights for billing in the telecommunications domain, for example. In addition, it applies to the tracking of the lifecycle of the product, which in turn determines authenticity and compliance, thereby minimizing the chance for counterfeits and improving the efficiency of the supply chain. In telecommunications, it improves security, reliability, and compatibility and other newer telecommunication paradigms that include civilian ad-hoc networks and peer-to-peer communications.

Challenge: Slower adoption of advanced technologies by small and medium-sized TIC companies

Globalization has integrated various technologies in numerous end-use sectors, including robotic process automation in manufacturing, machine learning in digital marketing, artificial intelligence for chatbots, and digital twins for enhanced customer relations. This rapid technological evolution affects the functioning dynamics and the average human practice of their duties in their respective capacities. Some of the key technologies that are expected to emerge as growth drivers are cognitive computing, blockchain, cybersecurity, and augmented reality/virtual reality, and they are likely to change how TIC providers view the market. However, innovations to cut costs have proven challenging for smaller TIC firms because for such businesses, capital is necessary for constant research and development. Furthermore, employing hi-tech testing and certification solutions for new brand entries creates problems for newcomers and companies with limited production output. While emerging TICs may struggle to be adopted and integrated into existing service portfolios, large TIC companies with solid financial backing can effectively incorporate emerging technologies into their value propositions across multiple applications. For instance, consumers can simply use their mobile phone to scan a QR code printed at a store in order to get more details, including the production history of the particular product, which will assist in their purchasing decisions. However, new technologies are equally a challenge for entrants who want to adapt to existing services or get certified across various applications in the near future.

Testing, inspection, and certification market ecosystem

Prominent companies in this market include well-established, financially stable providers of testing, inspection, and certification services. These companies have been operating in the market for several years and possess a diversified service portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include SGS SA (Switzerland), Bureau Veritas (France), Intertek Group plc (UK), Eurofins Scientific (Luxembourg), DEKRA (Germany), TÜV SÜD (Germany), DNV GL (Norway), TÜV RHEINLAND (Germany), Applus+ (Spain), ALS (Australia), TÜV NORD Group (Germany), Lloyd’s Register Group Services Limited (UK), MISTRAS Group (USA), ASTM (US), Element Materials Technology (UK), and UL LLC (US).

Testing, Inspection, and Certification Market Segmentation

By sourcing type, the outsourced segment is expected to grow at the highest rate during the forecast period

There is an increasing need for specialized skills and technical know-how in the marketplace. TIC services can be outsourced to third-party providers, thus providing a means by which a firm can obtain a diverse range of expertise, which otherwise would require a hefty investment. This is especially helpful for firms involved in sectors with many legalities to follow or for businesses in specialized industries. Moreover, outsourcing of TIC services may have some cost benefits associated with it. In this way, the application of third-party providers helps companies save money on the necessity of investing in the creation of testing and inspection facilities or in their maintenance, including testing equipment, personnel, and infrastructures. In utilizing outsourcing, companies can have the ability to expand or reduce their testing and certification requisites depending on its current demands.

By application, the agriculture & food application of the testing, inspection, and certification (TIC) market is experiencing notable growth

Policies related to food safety and quality standards have, for instance, received much emphasis in most countries. As consumers get more conscious of their health, the increasing number of certifications on agricultural products and foods are being demanded to conform to high standards of quality and safety. Consequently, the managers of agriculture and food-based companies are becoming more and more dependent on the TIC services to meet these standards and to prove to the consumer about their concern towards quality.

During the forecast period, Asia Pacific is projected to record the largest market share of the overall testing, inspection, and certification market.

Testing, Inspection, and Certification Market by Region

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In the forecast period, Asia Pacific is likely to constitute the largest share in the testing, inspection, and certification market. The major impetus for this extension is the fast-growing consumer electronics business in various regions, including China, South Korea, and India. As for consumer electronics, Asia Pacific is the leader not only in production but also in consumption in the world and offers everything from smartphones, laptops, televisions, etc. Furthermore, it is also a major producer of healthcare equipment and related factories and workshops for medical devices. Therefore, it finds itself well-positioned to lead the TIC services market, employing its extensive production experience and a large consumer pool. This manufacturing competent sector, embedded with the growing demand for electronics in the region, makes it a decisive factor in the fortunes of the TIC industry. In this context, TIC’s future growth in APAC electronics markets will remain steady and underpinned by the requirements to meet the necessary standards and quality and safety regulatory frameworks across various industries.

Key Market Players

SGS SA (Switzerland), Bureau Veritas (France), Intertek Group plc (UK), Eurofins Scientific (Luxembourg), DEKRA (Germany), TÜV SÜD (Germany), DNV GL (Norway), TÜV RHEINLAND (Germany), Applus+ (Spain), ALS (Australia), TÜV NORD Group (Germany), Lloyd’s Register Group Services Limited (UK), MISTRAS Group (USA), Element Materials Technology (UK), and UL LLC (US) are some of the key players in the testing, inspection, and certification companies.

Testing, Inspection, & Certification (TIC) Market Report Scope

Testing, Inspection, and Certification Market Highlights

This research report categorizes the Testing, inspection, and certification market share based on offering, type, panel size, location, vertical, and region.

Recent Developments

• In December 2023, UL and Hyundai Mobis North America provided that both the companies entered into an MOU to increase the safety and continue to deliver top-notch performance of electric vehicle batteries. With the help of access to UL LLC North America Advanced Battery Laboratory in Michigan, this partnership aims to promote safe large-scale implementation of electric vehicle battery technology as the number of electric vehicles is growing worldwide.
• In November 2023, Intertek Group plc formed a strategic alliance with Emitech Group so that it could expand its electrical testing capacity in Europe. Emitech Group being an independent testing and engineering expert is accredited with EN 17025 and EN 17065.
• In October 2023, TÜV Rheinland acquired Burotec, a Spanish business group offering comprehensive inspection, engineering, and security services. This acquisition enhances TÜV Rheinland’s voluntary services activities and expands its service portfolio in Spain.
• In September 2023, DNV-SE-0656 was launched by DNV GL to ensure and confirm the efficiency of PtX facilities. This extension of EN 16214-1 encompasses both PtX and process facilities, thus providing a general guideline for risk-based standalone verification or certification. PtX refers to the use of electricity to produce different fuels such as hydrogen, natural gas, ammonia, kerosene, and methanol.
• In July 2023, SGS SA provided verification and assessment services for railway infrastructures and energy subsystems. These accreditations join the existing ones within the company regarding the rolling stock and control-command and signaling subsystems, thereby opening the way for the Final TSIs on railway subsystems, itself a precondition for compliance.

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