Testing, Inspection, and Certification Market Size and Share

Updated on : October 22, 2024

Testing, Inspection, and Certification Market Size & Growth

The global testing, inspection, and certification market is expected to increase from USD 233.2 billion in 2024 to USD 280.6 billion by 2029, growing at a CAGR of 3.8% between 2024 to 2029.

This growth is attributed to stricter government regulations in key industries like food packaging and automotive, along with increased consumer demand for safe and sustainable products. To foster stakeholder trust and facilitate international trade, organizations increasingly focus on legal compliance. Also, the growing use of smart sensors, cloud services, and blockchain technology creates new opportunities for TIC providers.

Attractive opportunities in the testing, inspection, and certification (TIC) market

Testing, Inspection, and Certification Market Forecast to 2029

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Testing, Inspection, and Certification Market Trends and Dynamics:

Driver: Enforcement of strict regulations to ensure product safety and environmental protection

In recent years, consumers have become increasingly concerned about how products affect human health and the environment. To overcome these problems, organizations around the world have adopted safety testing services that comply with government regulations. These guidelines aim at minimizing the dangers posed by the products to users as well as the environment. For instance, authorities have set a number of regulations on the level of CO2 emissions especially to car manufacturing industries. In the same regard, the US National Highway Traffic Safety Administrations-NHTSA and National Transportation Safety Board-NTSB have advised the adoption of collision avoidance systems (CAS) to enhance passengers’ safety. This in turn results into the increasing need for testing, inspection, and certification services. Additionally, government regulations regarding the testing of food and consumer products, mandatory inspection laws, and the increased trade of consumer goods are contributing to the growth of the TIC market. Furthermore, clean production initiatives and favorable government regulations worldwide would support market growth.

The growth of the testing, inspection, and certification market is stimulated by universal standards of health, safety, environment, and product standards that are compulsory across most industries. These regulations dictate compliance with definite requirements for the benefit of consumers and workers, negative environmental impacts, and quality and safety assurances of products. TIC services are critical in confirming compliance with these regulations, delivering valuable assessments towards risk management, worldwide business compliance and, more importantly, industry assurance. TIC services provide industrial sectors with a rational and independent check when facing high standards regulatory systems, thus enhancing the confidence of the parties concerned, as well as the ease of international trade flows.

Restraint: TIC services are expensive because of varying standards and regulations across countries

With internationalism in trades and businesses, distinct local regulations and standards are likely to create barriers to accepting products internationally. Due to this, local and international standards clash, hindering TIC market growth. Variations in regulatory standards across different geographies lead to discrepancies in tax rates, thereby incurring additional costs for companies (hiring local staff to handle tax-related issues). Testing, inspection, and certification companies are subject to local laws and have to abide by the regulations and norms of the countries in which they operate; this may hamper their efficiency. Also, the risk related to the standardization and quality of testing and certification services provided by testing, inspection, and certification companies always exists. Additionally, safety, emissions, and fuel efficiency standards vary globally, especially in the US and Europe. The US and the EU have introduced a variety of anti-pollution policies to address the impact of pollutants, including carbon monoxide, nitrogen oxide, and non-methane organic oxides, on air quality. Permissible emissions levels in the EU are different from those in the US. Automakers operating in the US must meet Corporate Average Fuel Economy (CAFE) standards enforced by the National Highway Traffic Safety Administration (NHTSA). The EU does not directly set fuel economy standards; however, greenhouse gas emissions levels for new vehicles are regulated. Automobile manufacturers have developed personalized internal standards, which take care of the safety requirements of all geographical markets where they operate. Thus, the presence of multiple rules and regulations across different countries further increases the associated costs of testing, inspection, and certification services.

Opportunity: Leveraging Blockchain Technology in TIC Services

By utilizing blockchain technology, certification processes and data security and effectiveness can be improved. By using immutability, cryptography, and decentralization, the data is protected against fakery, unauthorized access, and hacking. Blockchain improves the certification processes and procedures such as product certifications, organic farming, agriculture education, and sustainability certifications since it combines procedural processes, reduces costs, and increases the rate of verification. It must, however, be embraced after some challenges relating to technology maturity, regulation, and user acceptance are resolved. TIC services, for instance, ensure data security and privacy via cryptographic science and decentralized databases using blockchain technology, which rules out risks like data theft. In addition, it enhances accountability by allowing views on billing for example in telecommunications through the transaction history which cannot be manipulated. Moreover, it entails monitoring and managing the product life cycle that defines the new product duplicated or copied in the market as an original product and reduces fake products or even enhance supply chain effectiveness. This enhances security, reliability, and compatibility in addition to new telecommunication paradigms like civilian ad-hoc networks and peer to peer communication.

Challenge: Slow adoption of advanced technologies by small and medium-sized TIC companies

A wide range of technologies have been integrated into numerous end-use sectors as a result of globalization, including robotic process automation in manufacturing, machine learning in digital marketing, artificial intelligence for chatbots, and digital twins for improved customer relations. Technology is quickly transforming the ways that we operate in various capacities and how we perform our responsibilities in each capacity. There are such significant technologies that are believed to be the drivers of growth, including cognitive computing, blockchain, cybersecurity, and augmented/virtual reality. These technologies are likely to change how TIC providers view the market as a whole. In spite of this, innovation to cut costs for smaller TIC businesses has proven challenging because they need capital for continuous research and development. Additionally, employing high-tech testing solutions for new brand entries poses a challenge for newcomers and small companies. While integrating TICs into a coherent service offering may be challenging for newly emerging TIC providers, well-established large TIC vendors who have secure financials could easily assimilate them into their value propositions. For additional information about a particular product, the consumer can just scan a QR code written at a store through the mobile phone, and it will display the production history of it. In the near future, new technologies embedded in services will also act as threats to the entrants, who wish to adopt the existing services or get certification across a number of applications.

Testing, Inspection, and Certification Market Ecosystem

There are several well-established, financially stable testing, inspection, and certification companies operating in this market. With a diversified service portfolio, state-of-the-art technologies, and global sales and marketing networks, these companies have been operating in the TIC market for several years. Prominent companies in this market include SGS SA (Switzerland), Bureau Veritas (France), Intertek Group plc (UK), Eurofins Scientific (Luxembourg), DEKRA (Germany), TÜV SÜD (Germany), DNV GL (Norway), TÜV RHEINLAND (Germany), Applus+ (Spain), ALS (Australia), TÜV NORD Group (Germany), Lloyd's Register Group Services Limited (UK), MISTRAS Group (USA), ASTM (US), Element Materials Technology (UK), and UL LLC (US).

Testing, Inspection, and Certification Market Segmentation

Outsourced sourcing type segment is expected to grow at the highest rate during the forecast period

By sourcing type, the outsourced segment is expected to grow at the highest rate during the forecast period. There is a growing trend for specialized and technical skills and knowledge in the market. Unlike manufacturing services, the TIC services can be sourced from the third party hence there is a way through which a firm can obtain all the expertise that it requires for its operations without having to incur a greatly substantial amount of investment. This is particularly useful particularly where there are many compliances to adhere to or in a specialized industry. However, the outsourcing of TIC services might also be linked with some cost saving advantages. In this way, the application of third-party providers also benefits companies to avoid the additional cost to invest in the establishment of testing and inspection facilities as well as in maintenance of test equipment and personnel and infrastructures for testing. Through outsourcing, companies can have the flexibility to increase or decrease the demand for testing and certification necessities.

Agriculture & food segment of the global testing, inspection, and certification (TIC) market will grow significantly during the forecast period

In terms of application, the agriculture & food segment of the global testing, inspection, and certification market is growing significantly. For instance, policies concerning food safety and quality standards have, for instance, received much attention in most countries. Due to the change of perception and appreciation of consumers regarding the adverse effects on their health, there is demand for certified agricultural products and foods that meet the quality and standard certifications. This has made the managers of agriculture food based firms to increasingly rely on TIC services to meet these standards and to assure the consumer of their concern for quality. Some of these services assist in confirming that the products attain the right quality certifications, are compliant with the nation and International laws and give the consumer confidence. TIC services help the company to overcome intricate regulatory policies, offer assurance that its products are safe, environmental, and quality compliant and thereby increase the consumers’ confidence and its competitiveness in the global TIC market. Secondly, as the food supply chain becomes increasingly globalized, the field of food safety and quality has become increasingly complicated, and this drives demand for TIC services in the food industry. This trend is also caused by the growth in the concern for sustainability, organic certification, and fair trade due to the desire of consumers to purchase products that were produced through environmentally friendly means. In sum, the agriculture and food segment remains the TIC market’s key growth engine on the global level.

Testing, Inspection, and Certification Industry Regional Analysis

Asia Pacific is projected to record the largest market share of the overall testing, inspection, and certification market during the forecast period

During the forecast period, Asia Pacific is projected to record the largest market share of the overall testing, inspection, and certification industry.

Testing, Inspection, and Certification Market by Region

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Over the forecast period Asia Pacific is anticipated to account for the largest share of the testing, inspection, and certification (TIC) market due to the growing and developing electronics manufacturing industry in countries like China, South Korea, and India. The Asia Pacific’s consumer electronics market remains the world's most significant producer and consumer of electronics such as smartphones, laptops, and television sets. Moreover, it is a significant exporter of healthcare equipment and medical devices which also creates the need for TIC services. A strong manufacturing base in Asia Pacific along with increasing need for electronics would be huge drivers for the TIC market. Its production factor and large consumption base makes it imperative for the region to ensure that products produced are of the required standard and quality as well as being safe for consumers. Due to increasing industrialization, demands for compliance with exacting legal requirements in such sectors, including electronics and healthcare, will also drive the constant growth of TIC services in the region. The future growth of TIC in Asia Pacific’s electronics markets will remain dependent on the need to meet ever changing regulatory requirements.

Top Testing, Inspection, and Certification Companies - Key Market Players

• SGS SA (Switzerland), 
• Bureau Veritas (France), 
• Intertek Group plc (UK), 
• Eurofins Scientific (Luxembourg), 
• DEKRA (Germany), 
• TÜV SÜD (Germany), 
• DNV GL (Norway), 
• TÜV RHEINLAND (Germany), 
• Applus+ (Spain), 
• ALS (Australia), 
• TÜV NORD Group (Germany), 
• Lloyd’s Register Group Services Limited (UK), 
• MISTRAS Group (USA), 
• Element Materials Technology (UK),
• UL LLC (US) are some of the key players in the testing, inspection, and certification companies.

Testing, Inspection, & Certification Market Report Scope

Testing, Inspection, and Certification Market Highlights

This research report categorizes the Testing, inspection, and certification market share based on offering, type, panel size, location, vertical, and region.

Recent Developments in Testing, Inspection, & Certification (TIC) Industry

• In December 2023, Hyundai Mobis North America and UL LLC signed a Memorandum of Understanding (MoU) to increase safety and to continue to deliver high-quality battery performance in electric vehicles. As electric vehicle sales increase around the world, this partnership takes advantage of UL LLC North America Advanced Battery Laboratory in Michigan to promote safe large-scale implementation of electric vehicle battery technology.
• In November 2023, Intertek Group has entered into a strategic partnership with Emitech Group for electrical testing in services throughout Europe. Since Emitech Group is an independent testing and engineering expert, its tested and accredited as per the norms of EN 17025 and EN 17065.
• In October 2023, TÜV Rheinland had purchased Burotec, a Spanish business group, which provides multiple services and products in the domain of inspection, engineering, and security. This acquisition increases company’s activity of voluntary services and develops a perspective of its service segment in Spain.
• In September 2023, DNV GL introduced DNV-SE-0656 aimed at assuring and verifying the effectiveness of PtX facilities. This extension of EN 16214-1 also includes PtX and process facilities and hence gives a general concept of the risk-based standalone verification or certification. PtX means Power-to-X, which is the ability to use electricity to generate various fuels, including hydrogen, natural gas, ammonia as well as kerosene, and methanol, among others.
• In July 2023, SGS SA offered verification and assessment services for rail infrastructure as well as the energy subsystems. These accreditations add to those in the company to do with the rolling stock and control-command and signaling sub-system, which provided the way to the Final TSIs on the railway sub-systems, which in turn is a prerequisite for compliance.

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