|Status : Published||Published On : Sep, 2021||Report Code : VRSME9056||Industry : Semiconductor & Electronics||Available Format :||Page : 165|
The testing, inspection, and certification market in the industrial & manufacturing industry was USD 15 billion in 2020, registering a CAGR of 3.5% 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, industrial and manufacturing industry, 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 surge in adoption of industrial applications, safety of workplace plant & machinery, the inclination of outsourcing testing, inspection, and certification services has propelled the growth of the TIC market in the industrial and manufacturing 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.
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 because 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 industrial and manufacturing 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, full-service laboratories, 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 the industrial & manufacturing 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 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 industrial & manufacturing 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 inspection services in the industrial & manufacturing industry will help in offering safety, reliability, and productivity in plant capacity. This will help manufacturers to know about predictive maintenance, asset management, and instrument calibration & repair, propelling the growth of the TIC market for the industrial & manufacturing industry.
Insight by Industry Vertical
Based on industry vertical, the TIC market for the industrial & manufacturing industry is divided into industrial machinery and automation, instruments and controls, low and medium voltage distribution, manufacturing facilities, and others. The industrial machinery and automation are further segmented into industrial control panels and panel shop programs, robotics safety, security and performance, and electrical enclosure and component. Instruments and controls are further divided into switch certification and evaluation, motor control services, power supply certification, and programmable logic controllers and process control equipment. Industrial machinery and automation are growing at a faster pace during the forecast period owing to digital transformation resulting in increasing manufacturing productivity, reduced production costs, improves quality, decrease labor expenses, and reduced the risk to workers. TIC in this segment will assess the interoperability, functional safety, electromagnetic capability (EMC)/wireless, and cybersecurity of their connected products, offer guidance on global regulatory requirements, and test and certify their products to the latest global standards.
The TIC market for the industrial & manufacturing industry is characterized by various industry trends such as growing investment in AR and VR, mounting adoption of connected devices such as IoT 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 regarding public health and safety management, asset management and optimization, certification requirements, and huge penalties against non-compliance parties are projected to drive the demand for TIC in the industrial & manufacturing 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, adoption of advanced technologies, and emerging digital technologies will boost the growth of the TIC market in the industrial & manufacturing 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, 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.
DEKRA Organisational and Process Safety partnered with Saudi Binladin Group to fast-track progress toward becoming a world leader in safety performance.
UL announces the launch of Machine Risk Assessment services designed to help factory owners, asset owners, and employers mitigate risk within the industrial workplace and provide a safer work environment.
Some of the key players operating in the TIC market in the industrial & manufacturing industry: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins USA, TUV Rheinland, Lloyd Register Group Limited, MISTRAS Group, TUV SUD, and DNV GL.
Source: VynZ Research