|Status : Published||Published On : Sep, 2021||Report Code : VRSME9060||Industry : Semiconductor & Electronics||Available Format :||Page : 155|
The testing, inspection, and certification market for physical security was USD 260 million in 2020, registering a CAGR of 6% 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.
Globalization has led to product standardization norms and has penetrated developed technologies across various industries such as fire safety equipment, food and beverage, 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 physical security. 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. There is an increase in demand for physical security owing to rising incidences of terror attacks, technological development and deployment of wireless technology in security systems, growing use of IP-based cameras for video surveillance, and increasing use of IoT-based security systems with cloud computing platforms which will propel the growth of TIC market for physical security.
TIC companies are catering to different industrial sectors such as agriculture, automotive, IT and electronics, physical security, building & construction, environmental protection, food testing, and oil and gas, maritime, medicine, education, tourism, logistics, consumer products, etc. and provide various standards and legislation.
The COVID-19 pandemic resulted in a short-term decline in demand and revenue in the first quarter of 2020. The internet ecosystem is playing an important role globally as a result there is widespread use of mobile devices and individuals are inclining towards the adoption of digital technologies. So, there is a need to have a cyber-safe remote working environment and physical security. Thus, TIC is playing a crucial role by offering assurance that the products and services offered to the customers will provide safety and security 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 physical security 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 physical security 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 & security, growing industrialization, and a need to protect the brand. 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 physical security is divided into access control, video surveillance, intrusion detection, locks, safes & vaults, door locking devices and hardware, ballistic resistant materials, burglary resistant materials, ATMs, anti-theft devices, and others. There is an increase in the adoption of video surveillance systems such as remote real-time video inspection using smartphones, tablets to maintain the supply chain, quality control, safety, and proper manufacturing schedules. In the burglary resistance test, the products (wall and door barriers, boltwork, drawer sliders, lock, handle, base fixing strength, preparation for alarm installation) are tested and should comply with the industry standards
The TIC market for physical security 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 physical security. Moreover, the rising incidences of terror attacks, protecting business assets, employees, and customers, adoption of IoT and cloud-based data storage, enforcement of government regulations and compliance, advancement of smart cities, shifting trends from traditional solutions will accelerate the growth of the TIC market for physical security. 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 physical security.
The testing, inspection, and certification market in physical security may face certain challenges like trade wars and growth fluctuations, huge investment for automation and installation of industrial safety systems, integration issues among security solutions, device vulnerability and chances of system being hacked, and 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, the technological development and use of IP-based HD video in video surveillance, and the emergence of automated drones for security trolling will create promising opportunities for the growth of the TIC market in physical security.
North America dominates the market of TIC in physical security as physical security is important owing to the need for safety against terror activities, illegal immigration, technological advancement, etc. These threats can be overcome by access control, perimeter intrusion detection, and video surveillance.
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, 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.
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.
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, product innovation, and geographical expansion to hold a major share in the TIC market for physical security.
Bureau Veritas, a world leader in testing, inspection and certification, has acquired Secura B.V. (starting with a majority stake), an independent service company specializing in cybersecurity services. Secura will be a cornerstone in the cybersecurity strategy of Bureau Veritas.
Some of the key players operating in the TIC market in the physical security Intertek Group plc, Bureau Veritas, UL LLC, SGS SA, Eurofins USA, TUV Rheinland, DEKRA SE, Element Materials Technology, Applus+, and DNV GL.
Source: VynZ Research