The Testing, Inspection, and Certification (TIC) Market is Estimated to Witness High Growth
The Testing, Inspection, and Certification (TIC) Market is estimated to be valued at US$ 232.3 Bn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Testing, Inspection, and Certification (TIC) Market is a growing and lucrative industry for service providers globally. TIC services help businesses to ensure their products and services comply with standards and regulations in domestic and international markets. This provides credibility, assurance and access to new markets for clients.
Market Overview:
Testing, inspection and certification services essentially help ensure products, processes, systems and people meet quality, safety and performance standards. These services cover a wide range of industries including food, agriculture, oil & gas, construction, chemical, life sciences and electronics. Key services include auditing, inspection, testing, verification and certification. As regulations become more stringent globally, demand for TIC services is rising given the need for credible third-party assurance.
Market key trends:
The key trend driving growth in the TIC market is the increasing outsourcing of these services by manufacturers and producers. Due to rising costs, complexity of regulations and the need to focus on core competencies, many companies are outsourcing TIC to specialist third-party providers. This is allowing TIC firms to leverage their expertise across multiple clients and verticals. Additionally, the increasing integration of advanced technologies like AI, IoT and blockchain by TIC providers is helping drive productivity and deliver more value-added services to clients. For example, digitization of inspection and certification processes. This technology-enabled transformation is a major trend shaping the future of this industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low given the high CAPEX requirement, expensive testing equipment and stringent regulations.
Bargaining power of buyers: The bargaining power of buyers is moderate given the diversity in TIC services and availability of substitutes in the market. However, switching costs are high.
Bargaining power of suppliers: The bargaining power of suppliers is low as services are differentiated and switching costs are high for buyers.
Threat of new substitutes: The threat of new substitutes is low as TIC services are integrated into the value chain.
Competitive rivalry: Intense as players compete on service portfolio and global reach.
SWOT Analysis
Strength: Established brands and global reach, technical expertise, accredited certifications.
Weakness: High capital requirements, compliance to multiple regulatory standards, fragmentation.
Opportunity: Growth in electronics and automotive sectors, stringent regulations driving demand.
Threats: Price competition, substitution threat from in-house testing capabilities, economic slowdowns impacting discretionary spend.
Key Takeaways
The Global Testing, Inspection, And Certification (TIC) Market is expected to witness high growth, exhibiting CAGR of 3.2% over the forecast period, due to increasing regulatory compliances across industries. The market size for TIC market in 2023 is estimated to reach US$ 232.3 Bn.
Regional analysis - Asia Pacific dominates the TIC market currently with over 35% share due to rapid industrialization. China is the largest market attributed to large manufacturing sector. Europe holds second largest share on back of stringent quality and safety standards.
Key players operating in the Testing, Inspection, and Certification (TIC) market are SGS Group, Bureau Veritas SA, TUV Rheinland Group, Intertek Group PLC, ALS Limited, DNV GL, MISTRAS, Lloyd€TMs Register Group Limited, Underwriters Laboratories Inc., ABS Group, and ASTM International. Key players compete on service portfolio, compliance with international standards and global reach.