|Status : Published||Published On : Sep, 2021||Report Code : VRSME9064||Industry : Semiconductor & Electronics||Available Format :||Page : 165|
The testing, inspection, and certification market in childcare products & toys was USD 1.6 billion in 2020, registering a CAGR of 4% during the forecast period 2021-2027.
Testing in TIC means an industrial 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 supports cost, productivity, on-time delivery, and market share, thus the critical factor for the survival of any manufacturing company. 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.
Toys play an important role in growing children’s minds by improving the thought process and decision-making ability. Globalization has led to product standardization norms and has penetrated developed technologies across various industries such as retail industry, food and beverage, electronics and automotive industries, childcare products & toys, etc., resulting in the growth of the TIC market during the forecast period 2021-2027. Moreover, the growing middle-class population, rapid urbanization, 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 the childcare products & toys. Furthermore, since childcare products and toys are highly regulated as a result non-compliant toys and childcare products have a serious threat to the child’s health and have a negative impact on the business reputation of a firm. Moreover, manufacturers are liable for any injuries which is a result of design flaws, use of unsuitable material, and substandard production, resulting in the growing demand for TIC in child care products & toys. 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.
The COVID-19 pandemic has resulted in an increase in the sale of toys such as outdoor activity toys, construction and craft toys, board games, puzzles, etc. This is due to the fact many parents are working from home are using these resources to educate and play with them. 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.
Insight by Sourcing Type
Based on sourcing type, the TIC market for child care products & toys 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. 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 childcare products & toys 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 by European Toys Safety Directive, UK Toys Safety Regulation, California Proposition 65, etc., providing Total Quality Assurance to clients, ensuring the overall safety to end consumers, growing industrialization, and a need to protect the brand. There are certain kinds of lab testing done on toys such as physical and mechanical testing, chemical testing, flammability, electrical and electronic safety, which aims to prevent hazards and risks like small parts, sharp points, and edges, etc. 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 childcare products and toys is divided into products for babies and toddlers (children’s baby apparel and footwear, cots, cradles, strollers, highchairs, and seats, play yards, and nursing products), and toys (dolls, plush, wooden, metal and plastic toys, stationary, chemical and educational toys, electric & radio controlled and electronic toys, and games). There is a growing trend towards electronic toys and educational toys as they are highly developed and look attractive to children. TIC for strollers, highchairs and seats is required as per standards of the wheeled Child Conveyance Safety Regulations 1997, which covers the risks and hazards such as chemical, thermal, mechanical, suffocation, entanglement, choking, and ingestion. Moreover, TIC services are required to find out the stroller’s durability.
The TIC market for child care products & toys 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 child care products & toys. There is a need to provide comprehensive quality, safety services, build, maintain & protect brand reputation along with product performance, and environmental protection will result in the growth of the TIC market for child care products & toys. Thus, 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 child care products & toys.
The testing, inspection, and certification market may 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, 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. Moreover, there is a need to deploy an effective and extensive inspection system that provides promising opportunities for the growth of the TIC market in the childcare products & toys.
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 and safety certification, testing, and inspection. China has made itself a high-quality, low-cost manufacturing base for a wide range of consumer products such as toys. 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 child care products & toys.
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 demand for rising automation, remotely-performed services, and enhanced digitization. Moreover, the industry players in the TIC market have started building strategies like mergers and acquisitions, product innovation, and geographical expansion to hold a major share in the TIC market for child care products & toys.
UL, a global safety science company announced the launch of the Bureau of India Standards (BIS) recognized testing services for domestic and foreign toy manufacturers in the country as per the Indian Standards (IS). Thus, Ul had set up the new testing facility in Gurugram, India.
Some of the key players operating in the TIC market in child care products & toys: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins Scientific, TUV Rheinland, DEKRA SE, ALS Limited, Element Materials Technology, and TUV SUD.
Source: VynZ Research