|Status : Published||Published On : Sep, 2021||Report Code : VRSME9057||Industry : Semiconductor & Electronics||Available Format :||Page : 165|
The testing, inspection, and certification market in the mining industry was USD 6.5 billion in 2020, registering a CAGR of 2.2% 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, mining, electronics, and automotive industries, etc., resulting in the growth of the TIC market during the forecast period 2021-2027. Mining is the world’s highest-risk business that is operated in remote and conflict-afflicted areas. Moreover, 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 mining 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. Mining and exploration companies require TIC to know that the project is commercially, technically, and operationally viable. Moreover, companies need to minimize the risk and maintain high industry standards according to IOS 14001, OHSAS 18001, etc.
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 mining 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. Moreover, it can also help manufacturers in reducing in-house compliance costs and easily respond to global market demands. Therefore, the mining industry chose in-house services over outsourced services due to the criticality of applications.
Insight by Service Type
Based on service type, the TIC market for the mining 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 need to have laboratory testing and automated sample preparation to assess the viability of the mining projects and to ensure the quality and integrity of commodities. Thus, companies from different industries are increasing their operational expenditure on the investment of testing equipment which offers market growth in the TIC market.
Insight by Industry Vertical
Based on industry vertical, the TIC market for the mining industry is divided into precious metals assay, exploration geochemistry, environmental analysis, and others. The introduction of sensitive, rapid throughput instrumentation has revolutionized geochemistry. TIC in the mining industry helps in exploring green or brownfield sites, assess the feasibility, set up mine operations across a wide range of geological materials containing precious, base, rare-earth, and battery metals, as well as bulk commodities, like bauxite and iron ore.
The TIC market for the mining industry 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, quality, safety, and cost-effectiveness of mining projects as well as mechanical integrity, inspections, and optimization of asset performance will reduce costs, ensure compliance, and extend the useful life of mining assets, resulting in driving the demand for TIC in the mining 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 mining 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. Mining is a risky business having a complex supply chain and strict environmental regulations. Moreover, a lack of testing facilities and skilled personnel may hamper the growth of the TIC market in the mining industry.
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 growing availability of advanced aerial imagery, adoption of innovative business models, shifting of mining activities in developing economies will create opportunities for the growth of TIC in the mining industry.
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, demand for safety and product quality, and increasing consumer awareness about the importance of quality certification, testing, and inspection. Moreover, the developed countries have their manufacturing units and some are shifting their mining activities in the region. These manufacturing units manufacture products according to internationally accepted standards.
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.
SGS has launched FAST Solutions (Field Analytical Services and Testing) for the metals and mining industry in North America and Australia which provides real-time data acquisition in the field by pairing with portable instrumentation and machine learning.
Some of the key players operating in the TIC market in the mining industry: Intertek Group plc, Bureau Veritas, Alex Stewart International, SGS SA, Eurofins USA, MAXXAM, ALS Limited, DEKRA SE, Applus+, and DNV GL.
Source: VynZ Research