PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494885
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494885
According to Stratistics MRC, the Global Testing, Inspection and Certification Market is accounted for $233.3 billion in 2024 and is expected to reach $327.2 billion by 2030 growing at a CAGR of 5.8% during the forecast period. Testing involves the systematic evaluation of products or systems to ensure they meet specified standards and performance criteria. It can include physical, chemical, or performance tests conducted in laboratories or real-world conditions. Inspection is the process of examining products, materials, processes, or systems to verify they conform to regulatory, safety, and quality standards. This can involve visual checks, measurements, and testing of components and final products. Certification is the formal recognition that a product, service, or system meets defined standards and regulations. Together, testing, inspection and certification services enhance trust, ensure safety, and facilitate market access by verifying that products and systems adhere to relevant standards and regulations.
According to TIC Council, the global trade federation representing the independent third-party testing, inspection, and certification (TIC) industry, the COVID-19 pandemic hindered companies from performing testing, assessment, and certification activities by traveling and carrying out on-site activities
Globalization and international trade
Globalization expands market reach for businesses. Products need to comply with diverse regulatory frameworks across different countries. This necessitates comprehensive testing and certification to facilitate smooth international trade. Companies require testing, inspection, and certification services to ensure their products meet the standards of various markets, boosting the testing, inspection, and certification market. Moreover it creates intricate supply chains with manufacturing spread across multiple countries. This can lead to inconsistencies in quality control across suppliers. TIC inspections play a crucial role in ensuring components from different countries meet quality standards for the final product, driving demand for testing, inspection, and certification services.
High costs
The upfront costs of testing, inspection, and certification services can discourage companies, especially startups, from developing innovative new products. The cost of testing and certification can be a significant hurdle, especially for companies with limited resources. This can stifle innovation and hinder the development of new technologies and products. However efforts to harmonize regulations and standards across different countries and regions could significantly reduce costs and streamline the testing, inspection, and certification process.
Consumer awareness and demand for quality
As consumers become more informed and discerning about product safety, quality, and environmental impact, they exert greater pressure on manufacturers to adhere to high standards. This heightened awareness leads to increased demand for TIC services to validate that products meet these rigorous standards. Companies are compelled to invest in TIC services to ensure their products are safe, reliable, and compliant with relevant regulations, thereby maintaining brand reputation and consumer trust. The growing prevalence of product recalls and safety concerns further underscores the necessity of robust testing and certification processes, driving market growth.
Lack of standardization
The testing, inspection, and certification market becomes fragmented with numerous providers following different standards. This fragmentation can dilute the effectiveness of testing, inspection, and certification services and make it difficult for consumers and businesses to identify reliable certification marks. Without standardized protocols, testing, inspection, and certification processes can yield inconsistent results, undermining trust in certification outcomes. Variability in testing methods and criteria can lead to discrepancies in product quality and safety assessments thus hampering the growth of the market.
Covid-19 Impact
The COVID-19, has disrupted the testing, inspection, and certification market significantly. COVID-19 has reduced manufacturing and production activities in several regional geographies due to the implementation of lockdowns by many national governments. However, the healthcare division witnessed significant TIC practices due to the rising need to acquire healthcare services and related products, including medicinal supplies. The consumer goods domain also embraced TIC practices during the pandemic due to people's rising demand to access safe and suitable quality food products.
The testing segment is expected to be the largest during the forecast period
The testing is expected to be the largest during the forecast period, rigorous testing processes validate product performance against set standards, fostering consumer trust and market credibility. The need for advanced testing methodologies drives demand for specialized TIC services, especially with technological advancements and increasing regulatory scrutiny. This, in turn, enhances market growth by compelling manufacturers to adopt comprehensive testing protocols.
The outsourced segment is expected to have the highest CAGR during the forecast period
The outsourced segment is expected to have the highest CAGR during the forecast period owing to driving efficiency, cost-effectiveness, and access to specialized expertise. Companies outsource TIC services to reduce operational costs, focus on core activities, and leverage the advanced technical capabilities of third-party providers. This trend boosts the TIC market by increasing demand for professional, reliable services. However, outsourcing can also introduce challenges such as ensuring quality control, protecting intellectual property, and managing cross-border regulatory compliance.
Europe is projected to hold the largest market share during the forecast period owing to the presence of a significant automotive industry in Germany and France facilitates the need to deploy efficient testing and inspection ecosystem in their companies. Furthermore, the presence of several fashion brands, consumer goods, and retail corporations in countries such as Italy and the U.K. also facilitates the development and growth of the TIC market in the region.
Asia Pacific is projected to hold the highest CAGR over the forecast period due to emerging markets in countries 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. Emerging markets, such as China, have become attractive spots through developing indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization.
Key players in the market
Some of the key players in Testing, Inspection and Certification market include ALS Limited, Applus+, Bureau Veritas SA, Dekra Certification B.V., DNV GL, Element Materials Technology, Eurofins Scientific, Intertek Group plc, MISTRAS Group, Inc., SGS SA, Socotec Group, TUV NORD GROUP, TUV Rheinland, UL LLC Lloyd's Register Group Limited and ASTM International
In May 2024, Bureau Veritas successfully completes an inaugural A3 rated (by Moody's) bond issuance of EUR 500 million with a maturity in May 2036. The final orderbook amounted to more than EUR 1.5 billion, which represents 3 times the targeted amount.
In May 2024, Intertek Launches iCare, an Innovative Digital Platform for Textile Quality Assurance, in Bangladesh this innovative digital platform is set to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish.
In March 2024, ALS strategically expands and strengthens its European and USA Life Sciences presence. The total cost of the acquisitions is approximately A$225 million and will be funded from existing bank debt facilities.