Testing, Inspection, & Certification Market Size (2022 – 2030)

During the period 2023 - 2030, the global testing, inspection, and certification market (hereafter referred to as the market studied) was valued at USD 209.78 billion in 2021, and it is predicted to reach USD 306.92 billion by 2030, showing a CAGR of 6.62 per cent.

MARKET OVERVIEW

The testing, inspection, and certification sector contributes significantly to the global economy by enhancing the quality of products used by diverse end-users across industries. TIC services also assist in reducing product recalls and maintaining compliance with regulatory agencies and industry standards.

The emergence of modern technologies in a variety of sectors has increased the demand for TIC services, which promote safe technology development and adoption while preserving compliance. Certain industries, including healthcare and pharmaceuticals, food and beverage, automotive, and industrial manufacturing, to name a few, demand internationally recognised products and technologies. Testing, inspection, and certification (TIC) play an important role in ensuring that infrastructure, services, and goods comply with safety and quality standards and regulations. The TIC industry is predicted to develop despite industrial seasonality, because of the significant demand for inspection and testing at regular intervals across a few industries, such as oil and gas.

Government and regulatory authorities are requiring firms to use testing, inspection, and certification (TIC) services, particularly in the areas of food certification and energy efficiency in the building industry. Testing and inspection in the country's food business are predicted to drive high growth rates to standardise quality. As a result, the food regulator FSSAI (Food Safety and Standards Authority of India) established a nationwide online platform to increase transparency in food safety inspection and sampling.

Globalization of trade creates a complicated supply chain that has the potential to affect product quality. To maintain the same, TIC services are necessary at every stage of the supply chain. Complex supply chains have provided considerable problems to the TIC sector as a result of growing globalisation, privatisation of state-owned laboratories, and rising end-user efficiency standards.

Covid-19 Impact on Testing, Inspection, & Certification Market

The COVID-19 outbreak has wreaked havoc on the TIC market. Due to the adoption of lockdowns by various national governments, COVID-19 has reduced industrial and production activity in several places. However, due to the increasing need for healthcare services and related items, such as pharmaceutical supplies, the healthcare segment saw considerable TIC practises. People's increasing need for safe and adequate quality food products prompted the consumer goods sector to embrace TIC techniques throughout the pandemic. DNV, a global certification, assurance, and risk management business, for example, announced the acquisition of MEDCERT, a notified body based in Germany, in January 2022 to enhance its healthcare and medical device assurance capabilities. As a result, DNV's ability to deliver further medical device notification services will be greatly increased.

MARKET DRIVERS

Government-imposed strict regulatory standards are driving the growth of the testing, inspection, and certification market.

The TIC market is rising because of government laws on food and consumer product testing, required inspection rules, and the growing trade of consumer products. Also expected to contribute to the growth of the testing, inspection, and certification market in the coming years are various governments' growing sensitivity toward a cleaner environment, favourable initiatives, rules, and regulations in sectors such as healthcare and automotive, and the rapid adoption of digital technologies to radically transform TIC services.

People's growing awareness is propelling the market forward.

Growing public awareness of food and beverage quality, as well as customer demand for these services, are all contributing to the TIC market's prospects. In addition, manufacturing facilities are expanding in emerging countries such as China, India, and Singapore. Before a product is released into the market, these businesses ensure that testing, inspection, and certification procedures are properly followed.

MARKET RESTRAINTS

The lack of international standards is limiting business expansion.

The lack of worldwide testing, inspection, and certification standards is one of the factors that has hampered the expansion of the TIC business. Furthermore, certain regions lack distinct norms and regulations, which has a direct impact on foreign players' investment decisions. Nonetheless, the TIC market will rise as a result of increased transaction volume and increasing demand for services. According to the original evaluation, these restrictions will be eliminated soon.

The High Costs of TIC Services are Slowing Market Growth.

The price of TIC services varies by industry, geographic location, and product pricing. TIC services are pricey in developed countries. According to the SGS SA testing service provider, quarterly certification fees in Germany, France, and the United States range from USD 500 to USD 1,500. According to ALS Limited, consumer and retail product inspection costs in China, India, and other countries range from USD 200 to 1,000. Inspection and certification at such a high cost are too expensive for small and medium-sized businesses. As a result, the market for Testing, Inspection, and Certification is hampered by the high cost of these services.

This research report, based on the Testing, Inspection, & Certification Market is segmented and sub-segmented by service type, sourcing type, Application and region.

Testing, Inspection, & Certification Market by service type

• Testing
• Inspection
• Certification

In 2021, the testing segment had the highest revenue share of almost 70.0 per cent. The automobile, energy and utilities, oil and gas and petroleum, and manufacturing industries all require extensive testing techniques. Companies can maintain high-quality parameters and meet client expectations by doing practical product testing. This is encouraging businesses in a variety of industries to raise their operational spending on testing equipment, ultimately boosting the market growth. Wallace Instruments, for example, announced the launching of the WAC11 Mk5 Compression Stress Relaxometer, the newest generation of their Compression Stress Relaxometer, in November 2021, one of the brands of testing equipment for the global rubber sector.

The inspection category is likely to provide the market with considerable potential prospects. This is due to an increase in supply chain activities in nations like Switzerland, Japan, Germany, and Norway, which allows for the implementation of inspection techniques. In addition, the consumer goods industry contributes to the expansion of the inspection industry. National governments and international agencies have imposed strict rules on the quality of cosmetics, electrical and electronic products, sports and athleisure wear, and textiles and footwear, allowing these industries to deploy an effective inspection ecosystem. In October 2021, for example, SGS SA, a testing, inspection, and certification company announced the acquisition of The IDEA TESTS Group, a leading provider of microbiological, clinical, and in-vitro testing and regulatory activities to the French personal care industry.

Testing, Inspection, & Certification Market by sourcing type

• Outsourced
• In-house

In 2021, the in-house kind had the highest revenue share of over 55.0 per cent. Because there is on-site availability and the flexibility to engage expertise and set up specific practises according to the company's needs and objectives, deploying in-house testing and inspection methods allows enterprises to practise actual TIC operations. In addition, employing in-house TIC teams provides better control and a deeper grasp of business operations, both of which may be beneficial to the firm.

The outsourced segment is likely to provide the market with substantial potential opportunities. Over the projected period, the segment is expected to grow at the fastest rate. Companies can exercise cost-effectiveness and focus on short-term commitments in the outsourcing industry. It also assists firms in implementing TIC practices utilising various engagement models, such as the hourly model, time and materials model, and dedicated team model, thereby increasing the efficiency of the system. For example, sophisticated technology and innovative solutions are being implemented in the food and beverage industries to help improve production, improve food quality safety, control risks, comply with their products and services, and satisfy global standards.

Testing, Inspection, & Certification Market by application

• Consumer Goods and Retail
• Food and Agriculture
• Oil and Gas
• Construction and Engineering
• Energy and Chemicals
• Manufacturing of Industrial Goods
• Transportation, Industrial and Automotive

In 2021, the infrastructure category dominated the market, accounting for over 13.0 per cent of worldwide revenue. Rising infrastructure investment in nations like China, India, and various European countries is allowing for higher adoption rates of TIC services and products in their respective regions, boosting the market growth. Also influencing the market growth are consumer goods and retail, agriculture and food, chemicals, energy and power, education, government, manufacturing, healthcare, mining, oil and gas, and petroleum, public sector, automotive, aerospace and defence, supply chain and logistics, and other applications. For example, SGS SA, leading testing, inspection, and certification organisation, announced the purchase of an 80 per cent stake in Ryobi Geotechnique International Pte Ltd. in December 2020. The acquisition is intended to increase exposure to key TIC megatrends and customer demand. It also helps the firm's regional expansion plan by providing critical infrastructure and construction safety, quality, and compliance services.

Due to the increased inspection actions carried out by enterprises in the industry, the consumer goods and retail sector has gained a considerable revenue share. To provide the highest quality products to their clients, consumer goods companies must adhere to some quality norms and requirements.

Testing, Inspection, & Certification Market by region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

With a revenue share of approximately 30.0 per cent in 2021, Asia Pacific dominated the global market. Rising economic development in countries like China, India, Japan, and South Korea is responsible for the large income share. As a result, the region's industrial and manufacturing activity has increased, providing potential for the TIC industry to expand. Furthermore, Singapore's fast-evolving AI technology ecosystem facilitates software and programmes, allowing for the expansion of testing and inspection services. For example, Applus+, a leading testing, inspection, and certification company, established its presence in Indonesia with ASME Certification in February 2022. (American Society of Mechanical Engineers).

Over the predicted period, the European region is expected to increase significantly. The presence of a substantial automotive industry in Germany and France makes it easier for their companies to implement an effective testing and inspection ecosystem. Furthermore, the existence of various fashion brands, consumer goods companies, and retail businesses in countries like Italy and the United Kingdom promotes the region's TIC market development and expansion. For example, UL LLC, a global provider of safety certification services, announced the acquisition of Method Park, a German firm that specialises in software solutions, process engineering, training, and advisory services for the automotive, aerospace, and medical industries, in July 2021. The acquisition boosts UL LLC's capabilities to help customers advance innovative safety, business transformation, and other initiatives.

Testing, Inspection, & Certification Market by company

Significant players in the TIC market have begun to expand and diversify their service offerings. Companies are offering products and services connected to wastewater testing and analysis in response to the COVID-19 situation. For example, the United States national public health body, the Centers for Disease Control and Prevention, announced in February 2022 that it will expand efforts to gather wastewater samples from communities to test for indications of the coronavirus. The group currently collects daily samples from over 400 places in 37 states and two territories. In the next weeks, the agency plans to add 250 more sites to the registry.

To boost market penetration, companies have been creating new development centres in new geographies. This allows them to develop stronger commercial relationships with their consumers and clients. Furthermore, service providers have begun to engage in mergers and acquisitions, which aids in the creation of new revenue streams. In February 2022, for example, Applus+, international testing, inspection, and certification organisation, announced the acquisition of Lightship Security, Inc., a leading North American provider of product certification services. Applus+ Laboratories' strategic goal is to build strength in critical technologies and capabilities to help clients navigate the worldwide technological transformation brought on by energy transition, electrification, and connectivity. ALS Limited; Applus+; Bureau Veritas SA; UL LLC; DNV GL; Eurofins Scientific; Element Materials Technology; Intertek Group plc; SGS SA; TÜV NORD GROUP; MISTRAS Group, Inc.; TÜV Rheinland; ÜV SÜD; and DEKRA SE are some of the major competitors in the TIC market.

NOTABLE HAPPENING IN THE TESTING, INSPECTION, & CERTIFICATION MARKET IN THE RECENT PAST

EXPANSION

In March 2022, UL GROUP opens a new state-of-the-art testing laboratory in Hai Duong. The facility offers end-to-end service solutions testing for certification, as well as Global Market Access Services for Vietnamese-made products.

MERGERS AND ACQUISITIONS

In January 2022, PreScience, a US-based pioneer in Project Management/Construction Management services for Transportation Infrastructure projects, was acquired by Bureau Veritas. In North America, PreScience's service offering will complement Bureau Veritas' existing Buildings & Infrastructure portfolio.

PARTNERSHIPS

In January 2022, SGS announced their alliance with Microsoft. The new partnership will allow the company to create and innovate data, IoT, and AI-based TIC services that are both sustainable and inclusive, allowing clients to reach their full potential.