|Status : Published||Published On : Sep, 2021||Report Code : VRSME9061||Industry : Semiconductor & Electronics||Available Format :||Page : 195|
The testing, inspection, and certification market in the marine industry was USD 10 billion in 2020, registering a CAGR of 4% 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.
The marine industry operates in the four main areas i.e., naval, commercial, leisure, and offshore renewable energy. Globalization has led to product standardization norms and has penetrated developed technologies across various industries such as building & construction, marine, 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, 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 marine 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 is required in the marine industry so as to ensure ships and cargo are regulated by environmental, safety, nuclear legislation.
The COVID-19 pandemic has a substantial economic impact on different sectors of the economy and the marine industry is adversely affected by it. Owing to the recent downturn in the production output has resulted in a drastic strain on the shipping business because the marine industry is totally dependent on production output to secure the cargo. 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 marine 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. 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 marine 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, such as IMO and SOLAS, increasing need for improved safety, growing industrialization, and a need to protect the brand. Testing is done to protect ship owners and operators from equipment failure, downtime, and repairs, and other risks related to bunker fuel, lubricants, fire-fighting foam, etc.
Insight by Industry Vertical
Based on industry vertical, the TIC market for the marine industry is divided into marine and offshore. Marine is further divided into ships (commercial, specialized, passenger, yachts, and naval) and vessels. There should be safe vessel construction and operations and helps in meeting regulatory requirements of ships and vessels. The offshore segment requires flexible solutions and technical expertise so as to provide sustainable and environmental-friendly energy, cost-effective solutions, resulting in the growth of the TIC market in the marine industry.
The TIC market for marine is characterized by various industry trends such as growing investment in AR and VR, mounting adoption of connected devices and cloud-based technology, digital sensoring, 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 marine industry. Moreover, there is a need to optimize asset integrity of vessels, data protection management, digitalize systems to improve performance, ensure safety and compliance will boost the growth of the TIC market in the marine 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 marine industry in shipping such as optimizing risk management, providing energy efficiency, offering accidental navigations and salvage, and help insurers manage claims. Also, 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, the design, integration, manufacturing, and operation of autonomous vessels and systems, R&D activities, increased use of 3d printing in the marine industry will create opportunities in the TIC market.
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, mounting demand for safety and product quality, resulting in providing opportunities in the marine 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.
Intertek Lintec expands the global reach of Protek services to address pandemic risk management for the Maritime industry. Focused on reducing pathogen transmission risks, Protek Maritime protects and assures port authorities, ship agents, surveyors, pilots, ship crews, and other stakeholders that recommended measures from IMO/WHO guidelines and industry best practices are being rigorously followed in seafaring accommodation areas and land-based facilities.
TÜV Rheinland and ClassNK signed a partnership agreement to expand their business relationship in areas of cybersecurity services and certification for the maritime industry to ensure the safety of vessels and marine structures.
Some of the key players operating in the TIC market in the marine industry: Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins Scientific, TUV Rheinland, Lloyd Register Group Limited, DEKRA SE, Applus+, and DNV GL.
Source: VynZ Research