The testing, inspection, and certification market is anticipated to expand at a CAGR of 1.8% during the forecast period.
|Testing, Inspection, and Certification Market CAGR (2022-2032)||1.8%|
|Testing, Inspection, and Certification Market Value (2022)||US$ 215.0 Bn|
|Testing, Inspection, and Certification Market Value (2032)||US$ 256.9 Bn|
By 2032, the testing, inspection, and certification market are projected to reach a value of US$ 256.9 billion, up from an anticipated US$ 215.0 billion in 2022.
The digital transformation of customer services is anticipated to have a substantial impact on the market for testing, inspection, and certification.
The use of testing, inspection, and certification services is increasing as a result of the demand for interoperability testing for connected devices and the Internet of Things. Businesses can expedite operations by tailoring their supply chain activities to their needs and preferences by utilizing Testing, Inspection, and Certification (TIC) approaches. These characteristics include, for example, government investments in the energy, transportation, and building sectors.
The rise in the outsourcing of testing, inspection, and certification services by well-known companies involved in the industrial, automotive, and consumer goods application areas is predicted to promote the growth of the TIC market. The TIC industry is expanding as a result of the rising demand from organizations and companies for reliable testing, inspection, and certification techniques.
Increased Outsourcing of TIC Services Drive the Global Testing, Inspection, and Certification Market
The proliferation of rules and standards has raised the cost of internal product testing, certification, and inspection. As a result, a number of industry players have started to contract out the TIC services to other companies. For instance, the rise of third-party inspection rules globally and the severe implementation of CCC certification in China are expected to lead to an increase in outsourcing segment revenue over the projected period.
The rising outsourcing of TIC services is anticipated to be one of the major drivers for enterprises in the worldwide TIC market. Independent TIC service providers are essential in assisting the government in fulfilling its obligation to protect citizens from harmful or untrustworthy products. For instance, there are more than 23 product categories covered by the Compulsory China Certification, including categories for wires, cables, appliances, consumer goods, and auto parts. Due to the considerable growth in the revenues of the automotive, industrial, and consumer goods industries in China, the need for testing services has increased, prompting the government to open its market to foreign rivals. Due to the expansion of third-party inspection rules on a global scale, it is projected that the revenue of the outsourcing category would grow throughout the forecast period.
Development in Infrastructure and Renewable Energy Generation Projects in the Growing Economies Creates Lucrative Market Opportunities
In developing countries, the transportation and infrastructure sectors are continually changing. Since testing, inspection, and certification are crucial parts of these industries and there is a growing need for the ongoing construction of transportation infrastructures like roads and rails, it is projected that the market will have a significant growth opportunity. The nation’s infrastructure is encouraged to be improved by the country’s economic growth, which in turn stimulates the market expansion of other growing economies like China and India. For instance, in February 2021, the Vietnamese government released a proposal for the most recent national power development plan. It requires increasing the output of renewable energy sources other than hydro, such as wind and solar.
With the implementation of renewable energy generation projects, demand for the TIC sector is likely to rise. For instance, the Indian market was ranked as the second-best market in the world for renewable energy in 2017. The country has the most aggressive expansion strategy in the world by 2022, requiring 175 GW of renewable energy. 100 GW of solar, 60 GW of wind, 10 GW of biomass, and 5 GW of small hydropower make up this renewable energy. Therefore, it is projected that the various governments’ investments in the building of infrastructure and power plants will promote market expansion because testing, inspection, and certification play a vital role in establishing such projects.
The highest market share belongs to Asia-Pacific, which is anticipated to expand at a CAGR of 5.2% during the forecast period. Due to the region’s tremendous growth in manufacturing and exports of raw materials, China and India are the most active testing and inspection markets in the Asia-Pacific. The export of food goods from India is a significant factor in the country’s rising exports. Export laws and regulations that are particular to the country or region apply to seafood from India. As a result, it is anticipated that inspection and testing in the food business will increase significantly. This would strengthen the Food Safety and Standards Authority of India’s transparency with regard to food safety inspection and sampling (FSSAI).