Testing, Inspection, and Certification Market Analysis (2023-2028)

Market Insights

"The global testing, inspection, and certification market size was estimated at USD 217.78 billion in 2022 and is likely to grow at a CAGR of 4.02% during 2023-2028 to reach USD 275.83 billion in 2028."

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Testing, inspection, and certification are referred to as services ranging from auditing and inspection to verification, testing, quality assurance, and certification of the equipment, product, and other services. These help in improving the efficiency of production to minimize error by reducing risk. TIC services apply to food, oil & gas, chemical, pharmaceuticals, and other sectors.

Market Dynamics

Market Drivers

The market is driven by a host of factors, some of which are noted below:

Growing focus of manufacturing companies to enhance customer retention by providing quality products and rising demand for interoperability testing for connected devices & IoT. The growing need of enterprises & corporations to engage in safe and efficient testing, inspection, and certification (TIC) practices offers significant growth opportunities. The imposition of various government standards and strict regulations to guarantee passenger safety and security boosts the demand for testing, inspection, and certification services in the coming years.

Strict regulations by the government related to food and consumer product testing, mandatory inspection regulations, and an increase in consumer goods trade due to digital transformation. Growing initiatives and favorable rules and regulations of governments across the globe pertaining to environmental protection through cleaner production.

Emerging Trends in the TIC Market

• The rise of digitalization: As more organizations employ digital technology to better their operations, digitalization is having a significant impact on the TIC sector. As a result, there is an increasing demand for TIC services that may be provided online.
• The increasing focus on sustainability: The TIC sector is being influenced by a growing emphasis on sustainability in the business environment. Businesses are increasingly seeking TIC suppliers who can assist them in evaluating and improving their sustainability performance.
• The growing importance of data analytics: As businesses seek ways to use data to better decision-making, data analytics is becoming increasingly significant in the TIC sector. New data analytics tools and services are being developed by TIC providers to assist businesses in making better decisions about product safety, quality, and compliance.
• The increasing globalization of the market: As corporations seek TIC providers who can supply services in different countries, the TIC sector is becoming increasingly globalized. This is resulting in an increase in the number of international TIC providers and the creation of new cross-border TIC standards.

Opportunities

• Growing demand for safety and quality assurance: There is an increasing demand for TIC services as consumers become more conscious of the importance of safety and quality. This is especially true in the healthcare, food & beverage, and manufacturing industries.
• Increased focus on compliance: Businesses are under increasing pressure to guarantee that their products and services comply with the expanding number of regulations and standards. Businesses can use TIC services to demonstrate compliance and avoid hefty fines.
• Advances in technology: Artificial intelligence and machine learning, for example, are opening up new options for TIC providers. These technologies have the potential to automate testing and inspection operations, increase result accuracy, and discover new dangers.

Challenges

• High cost of TIC services: TIC services can be costly, particularly for small organizations. This can be a barrier to entry for new enterprises and make compliance with rules challenging.
• Competition from other providers: Despite a number of significant, well-established suppliers, the TIC market is highly competitive. New enterprises may find it difficult to compete as a result of this.
• Lack of skilled workers: The TIC industry is experiencing a skills shortage. It may be difficult for enterprises to find qualified TIC providers as a result of this.

COVID-19 Impact Analysis

The COVID-19 pandemic has moderately impacted the testing, inspection, and certification sector. The ongoing pandemic has led to the lockdown all over the world. It has reduced manufacturing & production activities in various regions worldwide owing to the implementation of lockdowns by several national governments. However, the healthcare industry witnessed robust TIC practices owing to the soaring need to acquire healthcare services & related products, including medicinal supplies

Key Players

The following are the key players in the testing, inspection, and certification market (arranged alphabetically).

• ALS Limited (Australia)
• BSI Group (UK)
• Bureau Veritas SA (France)
• Dekra Certification GmbH (Germany)
• DNV GL (Norway)
• Eurofins Scientific SE (Luxembourg)
• Intertek Group PLC (UK)
• SAI Global Limited (US)
• SGS SA (Switzerland)
• Underwriters Laboratories (UL) (US)

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

Service Trends

"The testing segment accounted for the largest market share."

The market has been classified into testing, inspection, and certification. The testing segment held an astounding market share of more than 70% in 2022 & is expected to remain the largest market for thin film encapsulation during the forecast period. This is mainly attributed to the strong usage of testing practices in energy & utilities, automotive, petroleum, oil & gas, and manufacturing sectors. Also, practical testing of products helps companies to sustain high-quality parameters and cater to the needs of customers, thereby augmenting segment growth in the coming years.

Sourcing Trends

"The in-house segment accounted for the largest market share."

The market has been bifurcated into in-house & outsourced. The in-house segment occupied a market share of more than 55% in 2022 & is expected to grow at a healthy CAGR during the forecast period. In-house services are preferred over outsourced TIC services by sectors like the public sector and mining, the in-house sourcing segment is anticipated to hold a larger market share. Companies have total control over the whole process and production facility thanks to in-house testing services. Companies with in-house core business knowledge provide in-house testing services. A business must have internal biotechnology, testing, and measuring capabilities as well as qualified staff if it wants to carry out testing, inspection, and certification tasks in-house.

Regional Insights

"Asia Pacific accounted for the largest market share."

The Asia Pacific held a significant market share of more than 30% in 2022 and is projected to grow at a robust CAGR in the coming years. The rapid pace of industrialization and urbanization in the region has led to a surge in demand for TIC services, particularly in industries such as manufacturing, construction, and healthcare. The growing trend of outsourcing TIC services to specialized third-party providers has also contributed to the growth of the market. Overall, the testing, inspection, and certification market in the Asia Pacific region is expected to continue to experience strong growth in the coming years, driven by a combination of increasing demand from industries and a growing focus on quality and safety standards.

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Critical Questions Answered in the Report

• What are the key trends in the global market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
• What is the impact of COVID-19 on the global market?
• What are the key strategies adopted by the major vendors to lead in the market?
• What is the market share of the top vendors?

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s testing, inspection, and certification market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

The testing, inspection, and certification market is segmented into the following categories.

By Service Type

• Testing
• Inspection
• Certification

By Sourcing Type

• In-House
• Outsourced

By End-Use Type

• Consumer Goods & Retail
• Agriculture & Food
• Chemicals
• Infrastructure
• Energy & Power
• Education
• Government
• Manufacturing
• Healthcare
• Mining
• Oil & Gas and Petroleum
• Public Sector
• Automotive
• Aerospace & Defense
• Supply Chain & Logistics
• Others

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Customization Options

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Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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