by Testing, inspection, and certification services play a crucial role in ensuring product and system quality and safety across industries. These services involve sampling, measuring, inspecting, testing and certification of a wide range of products during and post-production to verify if they conform to prescribed standards. Stringent government regulations pertaining to product quality and safety coupled with rising customer demands for standardized and certified products have propelled the need for TIC services across sectors.
The global Testing, Inspection, and Certification (TIC) Market is estimated to be valued at US$ 220 billion in 2023 and is expected to exhibit a CAGR of 9.1% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends influencing the TIC market growth is the increasing outsourcing of TIC services by manufacturers. Due to dynamic regulations and stringent testing procedures, in-house testing requires high capital investment and skilled workforce which results in increased operating costs for manufacturers. As a result, manufacturers are increasingly outsourcing testing, inspection and certification activities to third-party TIC service providers who can offer scalable, flexible and cost-effective solutions. Another key trend is the growing demand for integrated services. Manufacturers seek one-stop solutions from TIC providers who can provide multi-disciplinary services from design verification to final inspection to reduce lead times and costs. Furthermore, with increasing importance of sustainability, standards and certifications related to ESG performance of products are gaining prominence.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the TIC market is moderate as significant capital investments and technical expertise are required. However, the growing demand for TIC services has opened opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers in the TIC market is moderate to high as buyers can switch between certification bodies and providers based on price and service offerings.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many testing equipment and instrumentation suppliers in the market supplying standard products.
Threat of new substitutes: The threat of substitutes is low as there are limited alternatives to certification and testing services. However, in-house testing is a potential threat in some product categories.
Competitive rivalry: The competitive rivalry in the TIC market is high owing to the presence of many global and regional players offering similar services. Players compete based on service portfolios, pricing, quality, and turnaround time.
Key Takeaways
The Global Testing, Inspection, And Certification Market Size is expected to witness high growth over the forecast period.
Regional analysis:
North America currently accounts for the largest share in the global TIC market owing to stringent regulations pertaining to product quality and safety. However, growth in Asia Pacific is expected to be higher driven by countries such as China and India. The region offers a large pool of skilled labor and cost advantages attracting companies to outsource their testing needs.
Key players: Key players operating in the testing, inspection, and certification market are SGS Group, Bureau Veritas, Dekra Certification, Intertek, TUV SUD, Eurofins Scientific, DNV GL, TUV Rheinland, UL LLC, ALS Limited, TUV Nord Group, Mistras Group, Inc. SGS Group and Bureau Veritas are the largest players whereas others are expanding their geographic reach and service portfolios to remain competitive.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
