Management System Certification Market Size and Share

Updated on : October 22, 2024

Management System Certification Market Size & Growth

The global management system certification market size is projected to grow from USD 40.0 billion in 2024 to USD 49.5 billion by 2029, growing at a CAGR of 4.3% from 2024 to 2029.

A global push for standardized and responsible business practices drives the management system certification market. Organizations seek certifications like ISO 9001, ISO 14001, and ISO 45001 to demonstrate commitment to quality, environmental sustainability, and employee well-being. Increased globalization also fuels the demand as standardized processes become essential. Certification serves as a credibility and trust-building tool amid growing consumer and stakeholder awareness of ethical and sustainable practices. Integration of digital technologies for real-time monitoring further boosts the demand for certification services.

Management System Certification Market Forecast to 2029

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Management System Certification Market Trends and Dynamics

Driver: Rising consumer awareness and demand for transparency

The increasing awareness among consumers regarding product quality, safety, and environmental impact propels the demand for management system certification. Consumers today are more conscious about the products they purchase, preferring those from companies that adhere to recognized standards. For instance, in the food industry, the demand for products certified with standards like ISO 22000 for food safety management has risen due to heightened awareness of foodborne illnesses and contamination risks. Additionally, consumers are inclined to support businesses that demonstrate commitment to sustainable and socially responsible practices. Certifications such as ISO 14001 for environmental management and SA8000 for social accountability appeal to consumers who prioritize ethically produced goods. As a result, companies across various sectors are opting for management system certifications to meet consumer expectations, build trust, and enhance their market competitiveness.

Restraint: High certification costs and resource investments

The substantial costs associated with obtaining and maintaining management system certifications significantly restrain the market. Seeking certification involves the initial expenses for assessment, documentation, and implementation and ongoing costs for audits and compliance maintenance. Small and medium-sized enterprises (SMEs) often face financial constraints that limit their ability to pursue certifications, hindering their competitiveness in markets increasingly prioritizing certified suppliers. For instance, ISO 9001 certification, a widely recognized quality management standard, can involve considerable financial commitments. The costs associated with certification can act as a deterrent for organizations, particularly those operating in price-sensitive industries, impacting the overall growth of the management system certification market.

Opportunity: Increasing focus on food safety and hygiene

Food safety and quality are crucial parameters, especially for those involved in producing and distributing food products and services. Hence, it is mandatory for food companies to comply with international standards and regulations throughout the entire production process. For instance, on August 25, 2021, the Food Safety & Standard Authority of India (FSSAI) issued a draft notification related to the Food Safety and Standards (Vegan Foods) Amendment Regulations, 2021. This regulation says that traceability shall be established up to the manufacturer level and shall include any other requirements prescribed by the food authority to maintain the vegan integrity of foods, food ingredients, or products thereof from time to time. This amendment also asks for compliance verification of the final product, using analytical tools available to ensure the absence of animal origin to endorse the vegan logo in the license.

Also, FSSAI has notified a new set of regulations to amend the existing Food Safety and Standards (Import) Regulations, 2017. The said regulations came into force on the date of their publication in the official gazette, i.e., November 6, 2021, and Food Business Operators (FBOs) are expected to comply with all the provisions of these regulations with effect from June 1, 2022. The amendment clarifies and sets the standards for raw edible oil, multisource edible oil, dehydrated vegetables, protein-rich wheat flour, protein-rich refined wheat flour, multigrain flour, mixed millet flour, feed, honey, dried sweet basil leaves, non-caloric sweeteners in a returnable container, hemp seeds and seed products, microbiological standards of food grain products, etc. The FSSAI has said that it may sometimes specify the categories of food products intended for export to India to further regulate control. Consequently, foreign food manufacturing facilities falling under such categories and wishing to export their food products to India are expected to register with the food authority before exporting to India. The foreign food manufacturing facility is expected to apply for registration directly or through authorized representatives in Form 16 of these regulations, along with documents specified in Annexure-1 and fees as specified by the food authority.

Challenge: Challenges faced by smaller market players in delivering certification services for emerging technologies

The integration of various technologies across diverse applications due to globalization has profoundly impacted day-to-day operations for personal and professional purposes. The swift pace of technological advancements, particularly in cognitive computing, blockchain, cybersecurity, and digital reality, is anticipated to act as macro forces directly shaping the perspectives of Testing, Inspection, and Certification (TIC) players in the current market landscape. The emerging digital experience is poised to introduce novel challenges for players in the management system certification sector. Notably, a fiercely competitive consumer environment has emerged in the augmented reality (AR) and virtual reality (VR) testing domain, prompting brands to distinguish themselves and enhance customer engagement. The AR/VR technology certification poses a unique challenge due to its immersive nature, making automated or lab testing intricate. Hardware certification becomes imperative to ensure proper functionality, alignment with the target demographic, and compatibility with other devices necessary for simulation. The adoption of certification services based on evolving technologies presents a challenge for smaller entities operating within the management system certification ecosystem.

Conversely, the incorporation of emerging technologies into various products within automotive, IT, and telecommunications poses a challenge for smaller players in the global management system certification business. While major players, benefiting from substantial profit margins, can seamlessly integrate new technologies into their existing service portfolios for diverse applications, emerging and smaller players may face difficulties. A case in point is Bureau Veritas, which, in early 2018, introduced Origin, the world's inaugural traceability label offering end-to-end proof of a product's journey in the food and beverages, consumer goods, and retail industries. Origin provides consumers with a convenient means to access detailed information about each stage of a product's journey by scanning a QR code in-store, facilitating informed purchase decisions. Consequently, the assimilation of evolving technologies into current service offerings or the certification of products across varied applications is anticipated to present challenges for smaller management system certification players in the foreseeable future.

Management System Certification Market Ecosystem

Key companies in this market include well-established, financially stable product and management system certification providers. These companies have been operating in the market for several years and possess a diversified portfolio of certifications that cater to a wide range of applications. Prominent companies in this market include SGS(Switzerland), Bureau Veritas (France), Intertek Group plc (UK), TÜV Rheinland (Germany), DEKRA SE (Germany), Eurofins Scientific (Luxembourg), TÜV SÜD (Germany), and DNV GL (Norway).

Management System Certification Market Segmentation

By Application, cyber security segment likely to exhibit the highest CAGR during the forecast period.

Based on application, the cyber security segment is expected to exhibit the highest CAGR in management system certification market during the forecast period. A confluence of factors propels the rapid growth of cybersecurity system certification. Heightened awareness of escalating cyber threats and stringent regulatory compliance requirements have driven organizations to prioritize robust cybersecurity measures. The increasing frequency and severity of data breaches and the pervasive impact on financial stability and reputation underscore the imperative for organizations to invest in certified cybersecurity frameworks. For instance, according to AAG, the average cost of data breaches for businesses was USD 4.35 million in 2022. In the same year, 39% of UK businesses experienced a cyber-attack. The average financial impact of cybercrime on UK businesses was £4,200 (~USD 5,580) in 2022. These factors collectively contribute to the rapid growth of cybersecurity system certifications as organizations strive to fortify their defenses against cyber threats and demonstrate their commitment to cybersecurity best practices.

By Certification Type, product certification is expected to account for the largest share between 2024 and 2029.

The product certification segment is projected to account for a larger share of the product and management system certification market than the system certification segment from 2024 to 2029. The growth of this segment can be attributed to the increased volume of certified products after their manufacturing cycle is completed. The demand for system certification is rapidly increasing owing to the presence of standards in production procedures that are adhered to ensure the development of optimum quality and authentic products.

By Vertical, medical and life sciences segment to exhibit the highest CAGR from 2024 to 2029.

The medical and life sciences application is likely to exhibit the highest CAGR in the product and management system certification industry owing to the rising demand for medical devices with enhanced quality and improved safety in the middle of the pandemic. Various newly introduced certification services, such as remote audits and online recertification services, have gained traction in recent years.

Management System Certification Industry Regional Analysis

Asia Pacific region is projected to experience the highest growth in the overall product and management system certification market during the forecast period.

Management System Certification Market by Region

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The Asia-Pacific region is witnessing a surge in product and management system certification demand, driven by several region-specific factors. The rapid industrialization and economic growth in countries like China and India have intensified the need for standardized processes and quality assurance, pushing businesses to seek certifications to meet international standards. Additionally, as Asia Pacific becomes a major player in global trade, there is an increasing emphasis on aligning products and management systems with international regulations and requirements to facilitate seamless cross-border transactions. The rise in consumer awareness and purchasing power in the region has led to a growing preference for certified products, emphasizing safety, quality, and sustainability.

Top Management System Certification Companies - Key Market Players

• SGS (Switzerland), 
• Bureau Veritas (France),
• Intertek Group plc (UK), 
• TÜV Rheinland (Germany), 
• DEKRA SE (Germany),
• Eurofins Scientific (Luxembourg),
• TÜV SÜD (Germany),
• DNV GL (Norway) are some of the key players in the management system certification companies

Management System Certification Market Report Scope

Management System Certification Market Highlights

This research report categorizes the management system certification market based on certification type, service type, application, vertical, and region.

Recent Developments in Management System Certification Industry

• In December 2023, Bureau Veritas and Avance Labs, the accredited code manager for International Renewable Energy Certificates (I-REC) related to hydrogen and its derivative fuels and products, entered into a memorandum of understanding (MoU). The agreement acknowledges the shared interest and advantages of collaborating in verifying and certifying attributes.
• In November 2023, SGS achieved accreditation from the ANSI National Accreditation Board (ANAB) for ISO 22716 cosmetics good manufacturing practices (GMP) certification, making it among the pioneering certification bodies to attain this recognition.
• In January 2023, Bureau Veritas designed an all-encompassing certification program for renewable hydrogen to support the renewable sector's growth and hasten the transition to sustainable energy. In the context of the energy transition, ensuring compliance with and providing assurance for the sustainability of new energy production, storage, and distribution presents unique challenges. The creation of this certification scheme stems from the collective requests of hydrogen producers and off-takers for comprehensive standards that are well-suited to the rapidly expanding global hydrogen market.
• In April 2022, Intertek Group plc partnered with Xpansiv for the new Digital FuelsTM Program, providing services such as data quality assurance, carbon intensity benchmarking, and independent certifications. Xpansiv, recognized as a global marketplace for ESG commodities, recently introduced Digital Crude Oil (DCO) as the latest component of its Digital Fuels (DF) Program. The registration of DCO units on the Xpansiv DF Registry allows markets to distinguish crude oil based on greenhouse gas emissions and ESG performance.

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