The Global Testing, Inspection, and Certification Market Size was valued at nearly USD 371.28 Billion in 2022 and is anticipated to reach USD 528.45 Billion by 2031, expanding at a CAGR of 4% during the forecast period, 2023 – 2031. The market growth is attributed to the growing requirement for inspection in various industries and the important certification needed to approve businesses while coping with all the necessary government policies.
The introduction of new technology increased health safety measures, and rigorous environmental requirements have completely altered the overall industrial view in terms of compliance with norms and regulations that assure the safety of individuals, equipment, and buildings.
Testing, inspection, and certification services are useful in oil & gas, automotive, consumer electronics, and other industries, which is increasing demand for the testing, inspection, and certification (TIC) industry internationally.
TIC plays an important role in ensuring that products, infrastructure, and services meet the specified safety and quality standards and regulations. Testing, inspection, and certification aid producers in increasing productivity, achieving international laws, quality assurance, and improving the quality of their goods and services. The testing, inspection, and certification industries are spread across the world with the presence of numerous local and regional competitors.
The increasing need for safety, inspection, effective testing, and certification methods among companies and corporations are factors expected to surge the market. Secure and efficient testing and inspection procedures ensure organizations retain the best possible quality standards as well as maximum efficiency and high productivity. Utilizing TIC techniques enables businesses to simplify business procedures by customizing their supply chain activities to meet their needs and preferences.
- For instance, in January 2022, PreScience Corporation, a U.S. company that offers construction management services for transportation infrastructure projects was acquired by Bureau Veritas, one of the prominent players in testing, inspection, and certification services.
The TIC market has been severely impacted by the COVID-19 pandemic. Lockdown across the globe and oscillating supply of raw materials forced manufacturers to shut down production leading to an unfortunate decline in market growth.
Several industries globally were affected due to the COVID-19 pandemic. The pandemic has decreased production and manufacturing operations in several regions due to the implementation of lockdowns by several national governments.
The launch of vaccines to combat the COVID-19 pandemic is expected to drive the market during the forecast period. The healthcare segment experienced substantial TIC practices due to the growing demand for healthcare services and related items, such as medication supplies.
The consumer goods sector also adopted TIC techniques throughout the pandemic due to people's growing demand to access suitable, safe, and quality food products.
- For instance, in January 2022, MEDCERT, a German-based notified body was acquired by DNV, global risk management, assurance, and certification company, to increase its assurance capabilities for medical and healthcare devices. The acquisition will significantly increase DNV's ability to offer further medical device notification services.
Testing, Inspection, and Certification Market Dynamics
The market research report on the testing, inspection, and certification market provides a detailed analysis by focusing on revenue growth, facts, figures, historical data, existing restraints, major drivers, key opportunities, and competitive analysis with recent developments that can shape the overall performance or outcome of the market during the forecast period, 2023 to 2031.
Major Drivers
Increasing risk to human life and effects on the environment are the major concerns encouraging consumers to use high-quality and reliable products. Companies all over the world are concentrating on integrating safety testing services to handle product safety and quality issues by abiding by legal requirements.
These regulations are intended to guarantee product safety and reduce negative environmental effects. For instance, to reduce CO2 emissions in the automotive industry, governments have imposed strict environmental rules on original equipment manufacturers (OEMs).
Similar recommendations were made in the US by the National Transportation Safety Board (NTSB) and the National Highway Traffic Safety Administration (NHTSA) for the use of collision avoidance technology. As a result, the need for testing, inspection, and certification services is projected to increase in the coming years due to the extensive standards and strict government laws that are being enforced to guarantee passenger safety and security.
The recovery and expansion of the testing, inspection, and certification market are anticipated to be aided by government programs and incentives intended to boost a number of industries affected due to COVID-19 including the automotive industry.
The market for testing, inspection, and certification is expanding as a result of stringent government regulations governing food and consumer product testing, compulsory inspection regulations, and increasing trade of retail goods as a result of digital transformation.
Existing Restraints
Testing, inspection, and certification standards for end-user industries and applications vary from country to country. Thus, lack of international standards hinders market growth.
Small and medium-sized testing, inspection, and certification industries face challenges while receiving accreditation due to the high cost of initial investment. Moreover, each country has its own certification requirements.
For electronics, the US and China have strict certification requirements, while the automotive industry in Europe has high number of certification requirements.
Middle East and Europe have a significant number of certification requirements for the oil and gas industry. This frequently results in a disagreement between national and international standards, which hampers market growth.
Many companies claim to be global, yet the definition of "global" they use depends on the requirements for compliance. One company may promote its goods in Canada, the US, and the European Union, while another may be launching new goods in more than 150 nations.
Depending on the product and the country, there may be certain guidelines about the testing's location or the tests that will be allowed in place of in-country testing. Product manufacturer needs to conduct product testing domestically or submit product compliance reports from an approved lab, both of which need significant financial investment.
Emerging Opportunities
The emergence of digitization in testing inspection and certification is expected to create opportunities for the market. Manufacturing companies are focusing on digitization which helps them satisfy customers by understanding, empathizing, and addressing all key points in which they interact with clients daily.
Consumers preferred transitioning to the digital world in virtually all organizations, including marketing, customer relationship management (CRM) projects, automation, business process optimization efforts, and social collaboration initiatives.
Several Countries are enforcing a number of strict restrictions since the data collected from the public needs to be secure and dependable. Data can constantly be monitored and tracked for learning purposes.
Early in 2019, China enhanced its e-commerce laws to prevent online fraud and protect customers. Similarly, new rules for e-commerce and digital marketing applications are estimated to standardize the processes for platforms that host vendors and products to be verified and validated.
E-commerce companies are expected to need consulting and assistance from testing, inspection, and certification service providers to address issues like automation, trade, and data privacy.
Digital inspections allow customers and senior members of companies to verify the information and participate in the inspection process from anywhere in the world. Additionally, owing to digital transformation, it is simple for businesses to provide certifications that are digitally signed.
Scope of Testing, Inspection, and Certification Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Testing, Inspection, and Certification Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023 – 2031
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Segmentation
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Service Type (Certification Services, Inspection Services, and Testing Services), Sourcing Type (Outsourced and In-house Sourcing), Application (Industrial Inspection, System Certification, Quality & Safety, Production Evaluation, and Others), and End-user (Sports & Entertainment, IT & Telecommunication, Supply Chain & Logistics, Rail, Marine, Aerospace, Automotive, Public Sector, Oil & Gas and Petroleum, Mining, Industrial & Manufacturing, Energy & Power, Construction & Infrastructure, Chemical, Agriculture & Food, Consumer Goods & Retail, and Medical & Life Science)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Size and Analysis, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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SGS Société Générale de Surveillance SA; Bureau Veritas; Intertek Group plc; KIWA NV; TÜV NORD GROUP; TÜV SÜD; Eurofins Scientific; TÜV Rheinland; DEKRA SE; ASTM.; DNV GL; Applus+; ALS; Lloyd's Register Group Services Limited.; MISTRAS Group; Apave International; UL LLC.; Testsigma Technologies Inc.; TIC-SERA Ltd.; Hohenstein; ALS; Genesis Group Ltd.; OPUS Group AB; Element Materials Technology; and Favareto Limited Company |
Testing, Inspection, and Certification Market Segment Insights
Service Type Segment Analysis
Based on service type, the global testing, inspection, and certification market is segregated into certification services, inspection services, and testing services. The certification services segment is anticipated to expand at a high CAGR during the projected period.
Organizations are granted product certifications or licenses by certification bodies, which allow them to display a mark of conformity on their products or provide certificates attesting to the product’s compliance with predetermined standards.
Customers are thus guaranteed that the goods they are buying adhere to the rules. Product certification provides organizations with a formal certification that the goods they sell have been tested by qualified individuals and abide by codes or standards. Those who want to get their products certified must show that they have sufficient quality control mechanisms in place to preserve their products in compliance with the standards.
Applications related to food, IT, and telecommunications offer immense growth opportunities for the market players. SGS introduced FSMA certification audit services for modern information and communications technology (ICT) in order to duplicate the entire onsite audit experience while also retaining the efficacy and quality of the audit process.
The testing segment accounted for a market share of around 71% in 2021 owing to increasing use of testing practices in manufacturing industries, oil & gas & petroleum, energy & utilities, and automotive. Product testing in the real world helps companies maintain high standards and satisfy client demands. As a result, companies from a variety of sectors are being encouraged to invest more in operational expenses for testing equipment, thus driving segment expansion.
- For instance, in November 2021, Wallace Instruments, one of the leading brands of testing equipment, declared the launch of the WAC11 Mk5 compression stress relaxometer, the new model of the company's compression stress relaxometer. CSR is a relevant standard that is applied in sectors such as energy & utilities, aerospace, construction, and automotive to demonstrate the resilience of an elastomer seal when held in compression over time and in various conditions.
The inspection services segment is estimated to provide immense growth opportunities during the projected period owing to increasing supply chain activities in nations such as Norway, Germany, Japan, and Switzerland, which made the deployment of inspection procedures possible. Additionally, the consumer goods industry assists in the growth of the inspection segment.
Major companies have been able to implement an efficient inspection ecosystem due to the strict regulations set by national governments and international organizations regarding the quality of footwear, textiles, sports & athleisure wear, electrical and electronic products, and cosmetics.
- For instance, in October 2021, IDEA TESTS Group, a significant provider of in-vitro, clinical, microbiological testing, and regulatory operations to the French personal care and cosmetics sectors was acquired by SGS SA, a testing, inspection, and certification company. Through this acquisition, the company would be able to improve its microbiological, clinical, and in-vitro testing capabilities in France and extend service offerings to the strategic core industries of hygiene and cosmetics.
Sourcing Type Segment Analysis
On the basis of sourcing type, the global testing, inspection, and certification market is bifurcated into outsourced and in-house sourcing. The in-house sourcing segment accounted for a market share of around 57% in 2021.
Companies can undertake real TIC operations due to the use of in-house testing and inspection methods since they can hire personnel on-site and create specialized procedures that suit their specific needs.
Deploying internal TIC teams also enables better control and a deeper comprehension of company procedures, which could be advantageous from an organizational viewpoint. The outsourced segment is expected to grow at a rapid pace during the forecast period. Companies are encouraged to adopt cost-effectiveness and concentrate on short-term commitments by the outsourcing segment.
Additionally, it aids companies in implementing TIC practices through several engagement models, such as the hourly model, time & materials model, and committed team model, thereby increasing the effectiveness of the system.
Modern technology is being installed in the food and beverage industries, and novel solutions are being introduced that help to increase productivity, improve food quality & safety, manage risks, comply with their products and services, and meet international standards.
The demand for outsourced TIC services has also increased as a result of the complex supply chains that have resulted in increased urbanization and globalization. Privatization of laboratories has also increased efficiency standards and raised the bar for lab operation, all of which have contributed to the demand for the TIC market.
End-user segment Analysis
In terms of End-users, the global testing, inspection, and certification market is fragmented into sports & entertainment, IT & telecommunication, supply chain & logistics, rail, marine, aerospace, automotive, public sector, petroleum, oil & gas, mining, industrial & manufacturing, energy & power, construction & infrastructure, chemical, agriculture & food, consumer goods & retail, and medical & life science.
The medical & life science segment is projected to expand at a high CAGR during the forecast period owing to high demand for medical PPE kits, sterilizers, gloves, gowns, masks, ventilators, and oxygen cylinders due to covid-19. Countries all over the world had imposed restrictions that impacted almost all industries.
It is essential to provide testing, inspection, and certification services for medical devices like vascular medical devices, orthopedic and dental devices, ophthalmic devices, in-vitro diagnostic (IVD) medical devices, active/non-active medical devices, and active implant medical devices to guarantee the security and wellbeing of patients. These services assist manufacturers in marketing and selling medical gadgets by obtaining international certificates. Manufacturers are adopting testing, inspection, and certification services due to changing laws, particularly for medical equipment.
The construction & infrastructure segment held around 15% of the total market share in 2021. High adoption rates of TIC services and products are expanding due to infrastructure in countries such as India, China, and various European countries, which is driving the segment growth.
- In December 2020, 80% shares of Ryobi Geotechnique International Pte Ltd. a company that focuses on geoengineering operations for activities including geotechnics, instrumentation, and soil investigation for infrastructure & construction sectors was acquired by SGS SA, one of the leading TIC companies. The acquisition intends to increase exposure to significant TIC megatrends and customer demand.
The consumer goods & retail segment held a significant share of the total market share owing to growing inspection activities conducted by companies in the sector. Consumer goods companies must adhere to a number of quality norms and requirements. This makes it essential to implement comprehensive inspection systems that are extensive and effective, which is projected to create lucrative growth opportunities.
Additionally, companies in the retail industry have to make sure that customers have access to the best customer experiences and products, which is estimated to increase the penetration of TIC services and technologies and drive the market.
Regional Analysis
On the basis of region, the global market for testing, inspection, and certification is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held around 30% of the global testing, inspection, and certification market share in 2021.
High reliance of several European and American nations on companies operating in the Asia Pacific for medical devices for pharmaceuticals, personal protection equipment (PPE) kits, medical devices, improved lifestyles, and increasing R&D in the field of connected and autonomous vehicles are some of the important factors boosting the global market.
China is anticipated to account for more than one-third of the total market share during the projected period. Growth of the global TIC market in the region is attributed to increasing foreign investment. International TIC operators plan to increase their presence in emerging markets, primarily through new acquisitions, with China being their main focus. In addition, the development and implementation of alternative fuel vehicles such as electric and hybrid cars are anticipated to boost testing and inspection activities, thus driving the market in China during the projected period.
- For instance, in February 2022, Applus+, one of the major testing, inspection, and certification industries, increased its footprint in Indonesia with ASME (American Society of Mechanical Engineers) certification.
The market in Europe is estimated to expand at a substantial rate during the projected period. Germany and France both have a significant number of automobile industries, which makes it necessary for both countries to implement effective testing and inspection ecosystems. Furthermore, the development and expansion of the TIC market in the region are attributed to the existence of several fashion brands, consumer goods companies, and retail organizations in countries such as the U.K. and Italy.
- For instance, in July 2021, Method Park, a Germany-based company that specializes in software solutions, training, process engineering, and consulting for medical, aerospace, and automotive industries was acquired by UL LLC, a prominent player in global safety certification services. The acquisition is estimated to improve UL LLC’s capacity to assist customers in regulatory & standards compliance, business transformation, and advancing innovative safety.
The market in Latin America is anticipated to grow at a rapid pace in the coming years. The medical & life science segment is projected to propel the market in the region. Demand for TIC services in the region is driven by the implementation of new rules in industries including the automobile, agriculture, and mining sector.
The introduction of new technology increased health safety precautions, and strict environmental laws have changed the outlook for compliance with standards and regulations in the region.
The demand for TIC services from the industrial sector in Brazil is increasing. For in-house testing, inspection, and certification, Brazil is one of the major service providers in Latin America. Technology created using the specific profitable method is used to deliver goods and services in Brazil, which is creating a significant demand for TIC services in the region.
The Testing, Inspection, and Certification Market Size in the U.S. is projected to expand at a high CAGR during the forecast period. The rising demand for routine inspection and testing procedures across sectors, including oil & gas, is estimated to drive the market in the U.S.
The U.S. government has announced a number of development initiatives and advancements to certification standards that are expected to increase demand for TIC in the region. Furthermore, the country is engaged in extensive mining operations, which is fueling the demand for TIC service providers in the United States.
Segments
The global testing, inspection, and certification market has been segmented on the basis of
Service Type
- Certification Service
- Inspection Service
- Testing Service
Sourcing Type
- Outsourced
- In-house Sourcing
Application
- Industrial Inspection
- System Certification
- Quality & Safety
- Production Evaluation
- Others
End-user
- Sports & Entertainment
- IT & Telecommunication
- Supply Chain & Logistics
- Rail
- Marine
- Aerospace
- Automotive
- Public Sector
- Oil & Gas & Petroleum
- Mining
- Industrial & Manufacturing
- Energy & Power
- Construction & Infrastructure
- Chemical
- Agriculture & Food
- Consumer Goods & Retail
- Medical & Life Science
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- SGS Société Générale de Surveillance SA
- Bureau Veritas
- Intertek Group plc
- KIWA NV
- TÜV NORD GROUP
- TÜV SÜD
- Eurofins Scientific
- TÜV Rheinland
- DEKRA SE
- ASTM.
- DNV GL
- Applus+
- ALS
- Lloyd's Register Group Services Limited.
- MISTRAS Group
- Apave International
- UL LLC.
- Testsigma Technologies Inc.
- TIC-SERA Ltd.
- Hohenstein
- ALS
- Genesis Group Ltd.
- OPUS Group AB
- Element Materials Technology
- Favareto Limited Company
Competitive Landscape
Key players competing in the global testing, Inspection and certification market share include SGS Société Générale de Surveillance SA; Bureau Veritas; Intertek Group plc; KIWA NV; TÜV NORD GROUP; TÜV SÜD; Eurofins Scientific; TÜV Rheinland; DEKRA SE; ASTM.; DNV GL; Applus+; ALS; Lloyd's Register Group Services Limited.; MISTRAS Group; Apave International; UL LLC.; Testsigma Technologies Inc.; TIC-SERA Ltd.; Hohenstein; ALS; Genesis Group Ltd.; OPUS Group AB; Element Materials Technology; and Favareto Limited Company.
Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares, generate revenue, and raise their production line of business in the coming years. For instance,
- On February 2023, Intertek, a prominent Total Quality Assurance provider worldwide extended its contract with the Uganda National Bureau of Standards (UNBS) to continue to manage its Pre-Export Verification of Conformity to Standards Programme (PVoC) for continuing to export to the country.
- On February 2023, Apave, an international company with more than 150 years of experience in the management of environmental, technical, human, and digital risks declared that it has acquired the technical inspection activities of the Houston-based American ABS Group. It aims in doubling the group’s presence in business activities, geographies, and other sectors.
- In February 2022, Lightship Security, Inc. a well-known product certification services provider in North America was acquired by Applus+, international testing, certification, and inspection company. The strategic goal of the acquisition is to strengthen its position in key technologies and competencies to support clients during the worldwide technological change brought on by electrification, energy transition, and connectivity.
- In September 2021, DEKRA added new testing and certification services in accordance with the ETSI EN 303 645 standards, expanding its portfolio of cybersecurity services. ETSI, a member of the European Standards Organization, developed this cybersecurity standard. It is the first cybersecurity standard for consumer IoT devices that is universally applicable and creates a baseline for security and privacy best practices.
- In September 2021, SAI Global Assurance, one of the top quality assurance service providers was acquired by Intertek Group plc. The acquisition improved Intertek's offering by extending its global reach. Moreover, this acquisition strengthened Intertek's market position in countries such as China, the United Kingdom, Canada, the United States, and Australia.
- In August 2021, The Sattvik (Vegetarian) Food Certification Scheme was launched by Bureau Veritas India, bringing world-class competence to its evaluation of food safety and quality.
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