Global Testing, Inspection, and Certification Market - Growth, Trends, and Forecasts (2021 - 2026)
- September 2021 •
- 241 pages •
- Report ID: 6155690 •
- Format: PDF
The Global Testing, Inspection, and Certification market was valued at USD 200.16 billion in 2020, and it is expected to reach USD 286.2 billion by 2026, registering a CAGR of 6.4%, during the period of 2021-2026.? Owing to the significant outbreak of the COVID-19 pandemic across the world, the market witnessed a short-term decline in demand. Though the decline in revenues was witnessed in the first quarter of 2020, a few prominent players witnessed significantly high demand for testing, inspection, and certification services from select end-user industries.
With the advent of new technologies, and the high demand for inspection and testing at regular intervals across a few industries, such as oil and gas, the TIC market is expected to witness growth, irrespective of the industrial seasonality.
There is an increase in the volume of international imports and exports, especially for products, such as food and medical products. The Food and beverage, consumer electronics, agriculture, and automotive (electric vehicles) markets are expected to provide more scope for TIC services.
Additionally, the environment-focused initiatives are driving the adoption of new testing standards, primarily with the aid of new technologies. For instance, the Detox campaigns, such as Greenpeace’s ZDHC (Zero Discharge of Hazardous Chemicals) campaign across Europe and America. This campaign aimed to reduce the usage of harmful chemical substances in the textile industry (the second largest polluter of freshwater worldwide).
Globalization of trade leads to a complex supply chain that can impact product quality. Therefore, TIC services are required at every stage of the supply chain to maintain the same. Due to rapid globalization, privatization of state-owned laboratories, and increasing standards of end-user efficiency, complex supply chains have posed major challenges to the TIC market. Also, the growing adoption of automation technologies across industries makes allied manufacturers transition from legacy systems to smart components and smart machines. Such trends, however, tend to negatively impact the supply chain as more and more stakeholders get involved.
The COVID-19 pandemic has encouraged a shift from traditional on-site testing to remote testing, inspection, and certification. The transition is supported by various organizations, including TIC Council Americas, the Americas’ branch of the TIC Council. The organization addressed the possible queries of industry operators that require TOC services in a white paper on Remote Inspection, titled “What is Remote Inspection and Its Functionalities” and “In What Ways Can Remote Inspection Be Effectively Implemented?” Although remote testing is yet to penetrate and hold a significant market share, the COVID-19 pandemic has positively impacted this segment.
Key Market Trends
Oil and Gas Industry Expected to Hold a Significant Share
With inspection and testing at regular intervals across a few industries, such as oil and gas, becoming mandatory, the TIC services are expected to grow in demand, irrespective of the industrial seasonality.
As a part of technical offerings, TIC vendors offer total quality assurance across various stages of the oil and gas supply chain, which includes testing, inspection, and certification to other services, such as technical, consulting, engineering, and other related services. The industry brings a distinctive set of challenges for operators, as the production and storage are dynamic and depend on market fluctuation.
The Asia Pacific region’s new-built projects dominate the upcoming project’s landscape in the world and are indicative of the need for TIC services throughout the project. Similarly, as of August 2021, ISAT and TWI Southeast Asia partnered to build sustainable skills and provide specialist training in welding, non-destructive testing, painting and coating inspection, and health and safety environment services to East Timorese residents. This is in line with providing residents with trade skills in order to be able to participate and be employed in major oil and gas activities in the country.
In March 2021, Bureau Veritas, a global leader in testing, inspection, and certification (TIC) services, has joined the Waterstof Industrie Cluster, an industrial collaboration that brings together corporations, research institutions, governments, and authorities to work on hydrogen. The cluster that was founded in 2016 is positioning itself as the "voice" of the developing hydrogen industry in Belgium and the Netherlands, encouraging collaboration among its 80 members to stimulate hydrogen projects as a storage medium for renewable energy and its use for zero-emission mobility, heat, or industrial applications.
According to the World Corrosion Organization, corrosion costs the global economy more than USD two trillion every year, and almost 45% of the cost of this corrosion happens exclusively in the oil and gas sector. Real monitoring and continuous maintenance are mandatory in this sector to avoid any interruptions in import and export activities, which govern the global oil equilibrium. These factors are creating greater opportunities in this market.
Asia Pacific Holds Largest Market Share
The Asia Pacific region is anticipated to hold a major share due to emerging markets such as China, India, Japan, and South Korea, which have become attractive through the development of indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization.
The emerging markets, such as China, have become attractive spots through the development of indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization.
China’s five-year plan for 2016–2020 and the Made in China 2025 initiative have identified 5G as an emerging industry. It offers opportunities for Chinese companies to become more competitive and innovative in the global market and prevent low-quality and counterfeit goods from entering the market, which the attainment of domain-specific certifications can achieve.?
Japan has been witnessing a significant partnership and collaboration strategy to expand the TIC market. For instance, in January 2020, TÜV SÜD and IX Wind signed a memorandum of understanding for the cooperation in various services for the wind power industry in Taiwan and Japan. The collaboration between IX Wind and TÜV SÜD has focused on the performance improvement and inspections of WTG and the full scope of supply quality management and control.
The companies in Japan have to pass through various approvals for the goods imported. Some of them include Optional S Mark Certification, SG Seal of Safety Approval for Mechanical Products, and DENAN & PSE Approval.
On the manufacturing front, the South Korean government is planning to turn the nation’s robotics technology into a USD 25 million industry, with a focus on becoming the fourth-largest player by 2023. This is fostering the emergence of robotic companies. However, companies need to acquire industrial robot product safety certification based on international and local standards to bring such robots into the manufacturing and service sector.
Furthermore, South Korea is home to semiconductor giants, such as Samsung Electronics and SK Hynix. In May 2021, the South Korean government planned an investment of USD 451 billion on domestic semiconductor production over the next decade.
The Testing, Inspection, and Certification Market is highly competitive and consists of several major players. Although the market is fragmented, the market is dominated by three large players, namely, SGS, Bureau Veritas, and Intertek (approximately 25% of the total market share), and the top 10 players accounted for less than 40% of the TIC market. Enterprises across industries, like life sciences, utilities, and the public sector, are still dependent on in-house TIC services. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
September 2021 - Bureau Veritas acquired AET France, a laboratory testing, product development, and sustainability testing company. AET France specializes in consumer experience testing, employing collaborative robotics solutions and completely automated aging processes for life testing, and has a deep understanding of human-machine interfaces and ergonomics.
September 2021 - UL Group announced the addition of a cable fire safety and performance laboratory to its existing location in Abu Dhabi. The expanded facility, which is located in the Industrial City of Abu Dhabi (ICAD), provides access to a local fire safety laboratory for manufacturers, brands, and suppliers of electrical and optical cables and busways from across the Middle East.
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