Market Overview:
Testing, inspection and certification (TIC) involves inspecting products, facilities, systems and processes, testing and measuring, checking compliance against specifications and standards and certifying companies’ compliance with regulations or standards. These services are an important part of national and international trade to ensure the quality and standards of products. They also help mitigate risks for manufacturers by verifying their products are safe for end users.
Market key trends:
One of the key trends in the TIC market is the increasing outsourcing of testing, inspection and certification services. Traditionally, manufacturing companies had in-house testing facilities but with growing complexities and importance of certification, many industries are now outsourcing these services to third-party TIC providers. This is allowing manufacturers to focus on their core competencies while leveraging external experts to ensure quality compliance. The outsourcing trend is being driven by rising recognition of need for independent inspection and certification in global supply chains. It is helping open new export markets for companies through internationally recognized certification standards.
Market key trends:
The global TIC market is witnessing increasing demand for outsourcing testing, inspection and certification services. This is because companies are increasingly focusing on their core operations to improve efficiencies and reduce costs. Outsourcing non-core functions allows organizations to leverage the expertise of specialized third-party service providers. Additionally, the market is seeing growth in digital and blockchain technologies that are being used to support TIC processes. Technologies such as Internet of Things, artificial intelligence and drones are finding increasing application in areas such as remote testing and predictive maintenance.
SWOT Analysis
Strengths: SGS Group, Bureau Veritas SA and other large players have a strong global presence and wide service portfolio which allows them to leverage economies of scale.
Weaknesses: Small players have limited geographic reach and capabilities compared to large multinational firms. Compliance with changing regulations also require significant investments.
Opportunities: Growth in digital technologies is allowing players to expand their digital/IOT certification services and remote testing capabilities. Emerging economies also offer significant headroom for market expansion.
Threats: Increased commoditization threatens margins. Intense competition from existing and new entrants also exerts pricing pressures.
Key Takeaways
The Global Testing, Inspection, and Certification (TIC) Market is expected to witness high growth, exhibiting CAGR of 3.2% over the forecast period, due to increasing outsourcing of non-core functions by companies. The market size for TIC was US$ 225.1 Billion in 2022.
Regional analysis: Asia Pacific region dominates the global TIC market due to rapid industrialization and growing manufacturing activity in major economies such as China and India. China accounts for over 25% of the global TIC market value. North America is another major region driven by strict product standards and regulations.
Key players: Key players operating in the TIC market are 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. SGS Group and Bureau Veritas SA have emerged as the largest players with global service reach.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it