|Status : Published||Published On : Sep, 2021||Report Code : VRSME9055||Industry : Semiconductor & Electronics||Available Format :||Page : 160|
The testing, inspection, and certification market in the building & construction industry was around USD 10 billion in 2020, registering a CAGR of 6% during the forecast period 2021-2027. Testing in TIC means an industry activity that assures manufactured products, individual components, and multi-component systems are suitable for the predetermined purpose. Inspection and testing are the operating parts of quality control, which is the most critical factor for the survival of any manufacturing company. Quality control directly supports other factors such as cost, productivity, on-time delivery, and market share. The testing, inspection, and certification market report is composed of conformity assessment agencies, which provide services from audit and inspection to testing, verification, quality assurance, and certification.
Globalization has led to product standardization norms and has penetrated developed technologies across various industries such as building & construction, food and beverage, electronics and automotive industries, etc., resulting in the growth of the TIC market during the forecast period 2021-2027. Moreover, the growing middle-class population, rapid urbanization, population migration from rural to urban areas globally, mandatory safety regulations, upsurge in the illicit trade of counterfeit and pirated products, advancement in networking and communication technology, the inclination of outsourcing testing, inspection, and certification services has propelled the growth of the TIC market in building & construction industry. Nevertheless, TIC provides various advantages related to its credibility and image, compliance with legal and regulatory requirements, less turnover of employees, high level of cost control improvement, and fast improvement of different processes. TIC in the construction sector includes building material testing, chemical testing for construction material, electrical wiring, inspection, geotechnical, and situational testing, resulting in providing more scope of TIC services in the building & construction industry. TIC companies are catering to different industrial sectors such as agriculture, automotive, raw materials, IT and electronics, building & construction, environmental protection, food testing, and oil and gas, maritime, medicine, education, tourism, logistics, consumer products, etc. and provide various standards and legislation
The COVID-19 pandemic resulted in a short-term decline in demand and revenue in the first quarter of 2020. Moreover, TIC is playing a crucial role by offering assurance that the products and services offered to the customers will provide safety and health standards. Business organizations in the TIC market are intensifying IT infrastructures and developing business continuity plans, implying that the testing, inspection, and certification market are holding the substantial potential to bounce back from the COVID-19 outbreak. This is due to the fact that TIC services will enhance and protect brand reputation, verify products’ safety, and enables trade.
Insight by Sourcing Type
Based on sourcing type, the TIC market for the building & construction industry is bifurcated into in-house and outsourced. Among the two segments, the in-house segment dominates the market and is anticipated to hold the largest share during the forecast period 2021-2027. Deploying in-house testing and inspection will offer companies to have complete control over the entire process in terms of technology, skilled personnel, and testing and measurement equipment. The in-house inspection will optimize the cost of maintenance and extend the life of buildings. Thus, enabling organizations to handle TIC activities like on-site availability, ability to employ talent, and establish custom practices as per the needs and desires of the organizations.
Insight by Service Type
Based on service type, the TIC market for the building & construction industry is segmented into testing, inspection, and certification. Among these segments, the testing segment holds the largest share in the testing, inspection, and certification market in 2020 owing to the diverse product standards, stringent regulations, increasing need for improved safety, growing industrialization, and a need to protect the brand. There is a high use of testing practices in the building & construction industry which results in maintaining high-quality parameters and meet the requirements of consumers. Thus, companies from different industries are increasing their operational expenditure on the investment of testing equipment which offers market growth in the TIC market. Moreover, the certification market is anticipated to have a high CAGR during the forecast period owing to the consumer awareness about the certified products, companies growing need to improve the product value, the surge in demand for quality and safe products, and mandatory regulatory requirements.
Insight by Industry Vertical
Based on industry vertical, the TIC market for the building & construction industry is divided into building materials, infrastructure & capital equipment, and others. The building material is sub-divided into material testing, material certification, and coating inspection & failure analysis. This can be attributed to the extensive use of certified materials and technologies in the building and construction sectors. Furthermore, the infrastructure & capital equipment is further sub-divided into the urban, sport, and institutional infrastructure, industrial & official assets, transport infrastructure, and residential, retail, and leisure buildings. Owing to the rising urban population, city dwellers need to develop safe and sustainable buildings, developers need to meet the demand for modern offices having efficient workspace and less environmental impact. Also, the residential consumers demand a personalized, pleasant living environment that includes digital services that are affordable. Moreover, the growing building and construction activities in countries like China, India, and various European countries will facilitate high usage of TIC services and products in the region, resulting in market growth.
The TIC market for building & construction is characterized by various industry trends such as growing investment in AR and VR, mounting adoption of connected devices and cloud-based technology, increasing mergers and acquisitions by the industry players, and sustained consolidation of suppliers leading to globalization.
The growing government-enforced regulations, considerable industry standards, certification requirements, and huge penalties against non-compliance parties are projected to drive the demand for TIC in the building & construction industry. Moreover, the increase in attention of manufacturing companies to offer quality products will enhance customer retention, mounting demand for interoperability testing for connected devices and IoT, globalization, and rise of global trade, and emerging digital technologies will boost the growth of the TIC market in the building & construction industry.
The testing, inspection, and certification market face certain challenges like trade wars and growth fluctuations, huge investment for automation and installation of industrial safety systems, high cost of TIC owing to diverse standards and regulations globally. Moreover, there are certainly more challenges faced by the building & construction industry such as projects should be completed on schedule, products to be safe and have quality standards, costs should not overrun, compliance to CSR, effective risk management. Moreover, a lack of testing facilities and skilled personnel may hamper the growth of the TIC market.
Testing, inspection, and certification is a massive market that provides lucrative opportunities in technologies such as AI, robotics, drones, big data analytics, next-generation automation, and cloud and cybersecurity.
Geographically, APAC is anticipated to have a high CAGR during the forecast period owing to the rising investment in R&D, rapid urbanization & industrialization, huge manufacturing capabilities and exports, rising per capita income among the middle-class population, improved lifestyles, and increasing consumer awareness about the importance of quality certification, testing, and inspection. Moreover, the developed countries have their manufacturing units in the region, especially in China and India. These manufacturing units manufacture products according to internationally accepted standards. Nevertheless, the growing middle-class population has led to the growth in private consumption and mounting demand for safety and product quality, resulting in providing opportunities in the building & construction industry.
Key players are adopting technological changes to improve their product portfolio and generate new revenues, optimize the operational cost, and enhance service efficiencies via process upgrades. The industry players are taking the COVID-19 crisis as an opportunity to restructure and revisit their existing strategies, focus on new services and delivery models to access the growing demand for automation, remote service execution, and improved digitization.
The business enterprises have started opening development centers in new locations to enhance market penetration which helps in building business relations with customers and clients. Moreover, the industry players in the TIC market have started building strategies like mergers and acquisitions to generate new revenue channels.
Applus+ acquired Soil and Foundation Company Limited and Geotechnical and Environmental Company (SAFCO), a leading provider of construction testing and inspection services, to expand its portfolio of services in the region.
Bureau veritas a leading player in the industry will acquire 65% of the equity stake in the McKenzie group. With this transaction Bureau, veritas will have the leadership position in building & construction services in Australia.
Bureau Veritas is a global leader in the testing, inspection, and certification of construction consultancy services. Bureau Veritas manages risk, adds value, provides cost-effectiveness, and gives clients help at all stages of the design and construction process.
SGS SA is a world leader in project management and provides enhanced experience in all areas of construction. SGS SA helps in managing technical risks, avoiding construction errors, controlling budgets, and keeping construction projects within the planned schedule.
Some of the key players operating in the TIC market in the building & construction industry: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins USA, TUV Rheinland, Lloyd Register Group Limited, DEKRA SE, Applus+, and DNV GL.
Source: VynZ Research