Testing, Certification, and Inspection Services for Hazardous Locations Market Size (2023 - 2030)

According to the latest analysis by Virtue Market Research, Global Testing, Certification, and Inspection Services for Hazardous Locations Market was valued at USD 11.30 Billion and is projected to reach a market size of USD 15.69 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.8%.

Hazardous Locations (HazLoc) testing, certification, and inspection services validate the safe usage of electrical equipment in environments with eruptive or volatile substances. These procedures are critical for guaranteeing the safety of equipment and instruments in such hazard-prone locations. The process involves thoroughly evaluating the equipment's capacity to avert ignition sources and lower the likelihood of explosions or fires in hazardous settings. The equipment undergoes rigorous tests, such as high-temperature, spark, and impact tests, to confirm its durability in demanding perilous conditions and ensure its suitability for utilization. After successfully concluding the testing procedure, the equipment is bestowed a HazLoc certification by an independent certification body. This certification comprises safety standards that the equipment must adhere to, along with a classification system that outlines the ideal hazardous environment for its utilization. The HazLoc certification is critical as it assures the safety of electrical equipment and instruments in potentially perilous environments. Without this certification, using such equipment in these environments could pose considerable risks and potentially lead to cataclysmic mishaps.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Drivers:

The growing need for assured safety in hazardous locations is fueling the growth of the Global Testing, Certification, and Inspection Services for the Hazardous Locations Market.

The demand for testing, certification, and inspection services for hazardous locations is propelled by the need to assure safety in areas at high risk of fires or explosions, known as Hazardous Locations or HazLoc. These locations are prone to such risks owing to the presence of combustible materials like gases, liquids, vapors, and combustible dust. To mitigate these dangers, processes, and products that could potentially create an explosive atmosphere must undergo assessment and adhere to stern international safety standards. 

The increasing need for mitigating risks and ensuring compliance in hazardous environments is another factor contributing to the growth of the Global Testing, Certification, and Inspection Services for the Hazardous Locations Market.

Inspection services are critical for safety and compliance in hazardous areas, protecting employees and business operations. Neglecting these services risks harm to individuals, asset damage, and financial repercussions. The inspection process includes three grades: visual inspections for visible defects, close inspections for faults necessitating access equipment, and detailed inspections with tools and test equipment to thoroughly assess issues. Inspections result in compliant reports, approved by qualified supervisors. Therefore, this factor also propels the demand for testing, certification, and inspection services for hazardous locations.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Challenges:

The Global Testing, Certification, and Inspection Services for Hazardous Locations Market is encountering challenges, primarily in terms of high cost due to spatial diversity. Differences in regulatory standards between regions lead to varying tax rates, which result in additional costs for companies and the need to hire local staff for tax-related matters. Testing, inspection, and certification companies encounter challenges in complying with local laws and regulations, thereby affecting their efficiency. Varied regulations create barriers to international acceptance of products, which can cause conflicts between local and international standards. Thus, these challenges inhibit the growth of the Global Testing, Certification, and Inspection Services for the Hazardous Locations Market.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Opportunities:

The increasing infrastructure and renewable energy projects present lucrative opportunities in the Global Testing, Certification, and Inspection Services for Hazardous Locations Market. The increasing urbanization worldwide has led to a heightened emphasis on infrastructure development in both developed and developing economies. This has led planners and decision-makers to adopt testing, certification, and inspection services to enhance the safety and ensure the quality of these infrastructure projects. Furthermore, the renewable energy sector, including solar and wind energy, necessitates specialized equipment that must operate at optimal efficiency. This propels the demand for effective testing, certification, and inspection services to guarantee the performance of essential machine components.

COVID-19 Impact on the Global Testing, Certification, and Inspection Services for Hazardous Locations Market:

The Global Testing, Certification, and Inspection Services for Hazardous Locations Market has been considerably influenced by the COVID-19 outbreak. As a result of rigorous lockdowns, travel restrictions, and social distancing measures, the demand for testing, certification, and inspection services for hazardous locations waned. Delays in the expedient manufacturing and distribution of equipment, components, and materials needed for testing, certification, and inspection services have also been caused by the pandemic's influence on the market's supply chain. The pandemic-induced economic uncertainties caused industries to lower capital project spending, which led to diminished investments in hazardous locations' testing, certification, and inspection services. These factors negatively impacted the market's growth.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Recent Developments:

• In December 2021, TÜV SÜD America unveiled the scaling up of its ATEX and IECEx services in the region of North America with new laboratories in Georgia and Ontario. This expansion augments testing capacity for customers in North America seeking compliance with the ATEX Directive and the IECEx International Certification Scheme. 

• In June 2021, LabTest Certification Inc. unveiled the expansion of its Hazardous Locations services in Houston, TX. This growth strives to bolster offerings and better serve clients in the hazardous locations sector.

• In July 2020, CSA Group and ELCA Laboratories partnered to provide thorough Hazardous Location testing solutions to Indian customers involved in product design and manufacturing. By joining forces, CSA Group and ELCA Laboratories strive to fulfill the requirements of Indian customers by delivering end-to-end testing services for Hazardous Location compliance.

TESTING, CERTIFICATION, AND INSPECTION SERVICES FOR HAZARDOUS LOCATIONS MARKET REPORT COVERAGE:

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Segmentation: By Service Type

• Testing Services

• Certification Services

• Inspection Services

The Testing Services segment occupied the highest market share in the year 2022. The growth can be ascribed to the significance of Hazardous Location Testing, which verifies the safety of products in environments prone to explosions. This testing assesses the protective measures implemented in a device's design. By subjecting the device to a potentially explosive atmosphere and attempting to induce a critical failure in its protection system, the test determines if the device meets the requirements outlined in the applicable hazardous location standard. Successful compliance indicates that the device is safe and suitable for utilization in the tested environment.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Segmentation: By Industry Vertical

• Aerospace and Defense

• Agriculture

• Automotive

• Energy and Power

• Food and Beverages

• Oil and Gas

• Pharmaceuticals

• Water and Utilities

• Others

The Oil and Gas segment occupied the highest market share in the year 2022. The growth can be ascribed to the importance of Class I Locations (oil and gas industrial areas), which are environments where flammable gases or vapors are present in sufficient quantities to potentially cause explosions or ignite. The presence of these substances in the atmosphere poses a risk of explosion when there is a nearby source of ignition, such as electrical equipment. Common examples of Class I locations include petroleum refineries, areas where gasoline is stored and dispensed, dry cleaning plants with cleaning fluid vapors, spray finishing areas, fuel servicing areas, and utility gas plants that handle liquified petroleum gas or natural gas.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

The region of Europe dominated the Global Testing, Certification, and Inspection Services for Hazardous Locations Market in the year 2022. The growth can be ascribed to the strong automotive industry in nations like Germany and France, which creates a demand for efficient testing, certification, and inspection services within their companies, and the presence of a well-established oil and gas industry in the nations of Russia and Italy. Furthermore, Europe is home to several prominent market players, including Intertek Group plc, DEKRA, Eurofins Scientific SE, Element Materials Technology Group, and Nemko Group AS. The region of North America is anticipated to expand at the quickest rate over the forecast period 2023-2030 owing to the considerable growth in industries like oil and gas, chemical and petrochemical, and automotive, the presence of rigorous regulations and standards regarding hazardous locations, and the strong presence of significant market players, including LabTest Certification Inc., Underwriters Laboratories Inc., and QAI Laboratories.

Global Testing, Certification, and Inspection Services for Hazardous Locations Market Key Players:

1. Intertek Group plc (United Kingdom)

2. LabTest Certification Inc. (Canada)

3. Underwriters Laboratories Inc. (United States)

4. DEKRA (Germany)

5. Eurofins Scientific SE (Luxembourg)

6. Element Materials Technology Group (United Kingdom)

7. QAI Laboratories (Canada)

8. SGS S.A. (Switzerland)

9. Nemko Group AS (Norway)