|Status : Published||Published On : Oct, 2021||Report Code : VRSME9072||Industry : Semiconductor & Electronics||Available Format :||Page : 140|
The testing, inspection, and certification market in the logistics and supply chain industry is USD 9.82 billion in 2020, registering a CAGR of 3.3% during the forecast period 2021-2027. Testing in TIC is defined as an industrial activity that ensures manufactured products, individual components, and multi-component systems suited for the predefined purpose.
Inspection and testing are the operational parts of quality control and includes cost, productivity, on-time delivery, and market share, thus the crucial factor for the survival of any manufacturing company. The TIC market report comprises conformity assessment agencies and includes audit and inspection, testing, verification, quality assurance, and certification.
Logistics and supply chain is one of the fastest-growing sectors owing to the boom in information technology and innovation in sophisticated databases which can track inventor and shipment globally via the internet, resulting in efficiency in transport and logistics. Moreover, growing urbanization, stringent certification requirements, concerns regarding proper handling, product safety, and quality will propel the growth of the TIC market for the logistics and supply chain industry. Owing to the COVID-19 pandemic, logistics firms that are involved in the storage, movement, and flow of goods have been adversely affected by the outbreak. The supply chain disruptions will negatively impact the competitiveness, economic growth, and job creation in the logistics and supply chain industry.
Insight by Sourcing Type
Based on sourcing type, the TIC market for the logistics and supply chain industry is bifurcated into in-house and outsourced. Among the two segments, the in-house segment is expected to witness the largest share during the forecast period 2021-2027. In-house logistics will help the organizations to include all the services and take measures in planning, networking, management, and communication for the logistics of its products. Moreover, companies will have a full control over the process i.e., technology, skilled personnel, and testing and measurement equipment.
Insight by Service Type
Based on service type, the TIC market for the logistics and supply chain industry is segmented into testing, inspection, and certification. The inspection segment is anticipated to grow fast during the forecast period owing to vendor audits and vendor site inspections to meet the supply chain requirements. Moreover, it will manage project risk, supply chain risk, resulting in delivery of the product safely, and will comply with regulations and specifications. Moreover, the certification market is projected to have a high CAGR in the logistics and supply chain industry during the forecast period owing to the mandatory global standards, companies’ rising need to improve the product value, and mounting demand for quality and safe products. ISO 28000 certification helps minimize the risk and damage on people, property, and cargo, optimize the processes to avoid delays and security risks, and enable to develop of a business continuity plan.
Insight by Industry Vertical
Based on industry vertical, the TIC market for the logistics and supply chain industry is divided into warehouse management, transportation, labor management, less than truckload (LTL), inbound logistics, outbound logistics, cargo, ERP. Inbound logistics is growing at a significant pace owing to its effectiveness and integrity as it is ordered automatically or by order-fulfillment systems. Warehouse management will lead to optimization of hierarchy and communication, inventory reliability, optimal stock required, and classification, resulting in the growth of this segment in the TIC for the logistics and supply chain industry.
The TIC market for the logistics and supply chain industry has various industry trends such as rising investment in AR and VR, growing use of connected devices and cloud-based technology, increasing mergers and acquisitions by the industry players, and sustained consolidation of suppliers leading to globalization.
The rigorous global regulations, growing scrutiny from customers and other stakeholders, more reliance on global sourcing, maintaining confidential information, manage and transport inventory, organize chemical information, and simplifying the process will drive the growth of the TIC market for the logistics and supply chain industry. Moreover, there is a need to provide a good supply chain management that encompasses organized warehousing, effective logistics planning strategies and will be able to handle complex processes in order to optimize productivity and minimize business and liability risks. These all factors will further accelerate the growth of the TIC market for logistics and supply chain industry.
The TIC market for logistics and supply chain face the challenge of the use of sub-contractors and agents who do not know the compliance level and the risk involved. Moreover, the threat of natural disasters may interfere in the operations resulting in delay or damage of goods. Furthermore, lack of testing facilities and skilled personnel may hinder the growth of the TIC market
Testing, inspection, and certification is a huge market that provides opportunities in technologies and has revolutionized the concept of supply chain 4.0 i.e. integrated use of robotics and automation, sensors and IoT, AR and VR, cloud computing, AI, big data analytics, etc. where digital technologies are used on the global value chains, resulting in physical and virtual manufacturing and transportation systems work together to streamline the production. This will result in providing mass customization and develop new business models in a more transparent way.
North America is anticipated to witness the largest market share during the forecast period in the TIC market for the logistics and supply chain industry owing to the technology-developed region along with a rising number of early adopters and the presence of major industry players. There is a rising need for SCM in the region owing to the focus on its supply chain functions like logistics, warehousing, production, and managing transport.
Key players are focusing on technological development to improve their product portfolio and increase their revenues, optimize the operational cost, and improve service efficiencies. The market 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.
Bureau Veritas, a world leader in testing, inspection, and certification (TIC) services, is launching Supply-R, a solution designed to meet companies’ new challenges relating to supplier network reliability and ensuring business continuity in all circumstances.
Some of the key players operating in the TIC market in the logistics and supply chain industry: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins Scientific, TUV Rheinland, TUV SUD, DEKRA SE, The British Standards Institute, and DNV GL.
Source: VynZ Research