Testing, Inspection, and Certification Market - Segmented by Type of Service, Sourcing Type, End User, and Region - Growth, Trends, and Forecast (2018 - 2023)
The Testing, Inspection and Certification Market is expected to register a CAGR of over 4.86% during the forecast period 2018 - 2023. The report profiles the TIC service providers offering testing, inspection, and certification services for various industries.
Globalization, digitalization, and growing consumer awareness about product quality, environmental protection, data security, and social responsibility are major factors driving the testing, inspection, and certification market. Stringent government regulations in the light of environment safety support the need for Testing, Inspection, and Certification (TIC) services across regions. Robust demand for consumer goods, cars, and the growing construction industry in markets (like European Union, Asia-Pacific), which are heavy users of TIC services are expected to fuel the growth of the market. Growth from sectors, like Agro-Food, Power and Utilities, Chemicals, Metals and Minerals are also expected to contribute to the growth of the TIC market.
Detox campaigns, such as Greenpeace’s ZDHC (Zero Discharge of Hazardous Chemicals) campaign across Europe and America, which is aimed at reducing the usage of hazardous material chemical substances used in textile industry (second largest polluter of fresh water worldwide) are estimated to have a huge impact on the work of TIC service providers. The need for safeguarding the brand image by avoiding mishaps. TIC companies are anticipating new opportunities arising from the digital revolution resulting in the rise of digital assets and ramping up their service offerings to guide the customers through the process. Significant investments in acquiring smaller TIC firms was evident during 2017, by established companies, like Eurofins, etc.
Increasing Adoption of Outsourcing Services
TIC is characterized as a non-core business for any organization across industries. Traditionally, the organizations have been depending on reliable sources for testing, inspection, and certification of their products and services considering the cost savings benefit of outsourcing the process. In the light of increasing regulations across regions with respect to energy efficiency, human and environment safety, the burden of performing these activities is estimated to increase further leading to deployment of highly sensitive technical equipment. For instance, Industry 4.0 transformation, which is expected to strengthen needs in terms of data management and cyber security impacts not only the players in the value chain, but also TIC companies. The stringent regulations from government and regulatory bodies across regions are, therefore, expected to influence the organizations to migrate to outsource these services.
Europe is Expected to Occupy a Substantial Share in the Market
Owing to the regulations imposed with respect to the food certification, energy efficiency in construction business, etc., the TIC market in the regions is expected to grow during the forecast period. Europe, one among the biggest importer and exporter of food globally, has agreed on a series of trade agreements regarding sanitary and phytosanitary measures with countries outside the European Union, in 2017. As part of their “Clean Energy for All Europeans package”, the European commission updated the Energy Performance of Buildings Directive. This update was intended to promote the use of smart technology in buildings. These regulations not only impact the technology firms but also benefits the TIC firms, thus contributing to the growth of the market. Increasing aid from the EU government on the construction industry growth also contributes to the growth of the market.
Key Developments in the Market
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