Testing, Inspection and Certification (TIC) Services Market Size By Service (Testing, Inspection, Certification), By Type (In-House, Outsource), By Application (Agriculture & Food {Seeds & Crop, Fertilizers, Food, Trade & Logistics, Pest Control & Fumigation}, Construction {Building Material [Material Testing, Material Certification, Coating Inspection & Failure Analysis], Infrastructure, Capital Equipment}, Life Science {Pharmaceuticals, Clinical Trials, Environmental, Medical Devices}, Consumer Products {Hardline, Softline, Electronics, Household Personal Care & Cosmetics, Hazardous Area Equipment}, Transportation {Automotive, Marine & Offshore, Railways, Aerospace}, Energy {Energy Source, Power Generation, Power Distribution}, Oil, Gas & Chemical {Upstream, Midstream, Downstream, Petrochemicals, Chemical Feedstock, Finished Product}, Mining, Industrial Machinery), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Russia, Denmark, Australia, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa), Growth Potential, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Aug 2019  |  Report ID: GMI2318  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 553   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

TIC Services Market size estimated at over USD 165 billion in 2018 and is anticipated to grow at a CAGR of more than 6% from 2019 to 2025.
 

U.S. TIC Services Market Revenue, By Service, 2018 & 2025, (USD Billion)

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The TIC services market growth is due to growing demand for verification, inspection, and testing & certification services among several enterprises across various sectors. In recent years, regulations associated with environmental safety, health, and product quality have become stricter. Particularly, food safety requires certifications as it is directly concerned with people’s health. Compliance with global testing, inspection, and certification has become critical as it surges the credibility of products. Furthermore, the increasing amount of preservatives in processed food products to increase the lifecycle of these products resulted in stringent regulations to limit the use as per permissible standards.
 

Rapid globalization is propelling market growth due to the rise in the number of new global trade agreements between countries, predominantly in BRIC. Globalization has increased the trade between emerging countries, resulting in the growth of TIC services for manufacturers as the imports from emerging nations are required to clear strict tests to adhere to international standards. In addition, companies are focusing more on outsourcing their TIC activities as stringent regulatory standards have increased the costs of running in-house TIC activities.
 

The growing trend of outsourcing services from third-party specialist firms also acts as a major driver for the TIC services market. Large corporations & state-owned establishments are gradually outsourcing their TIC activities to reduce their expenses and focusing on core business competency. Stringent government regulations to ensure the safety and quality of the products also drive market growth. Over the past five years, the incidences of non-compliance scandals have increased significantly.
 

Testing, Inspection and Certification (TIC) Services Market Report Coverage
Report Coverage Details
Base Year: 2018
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Pages: 553 Tables, Charts & Figures: 916
Geographies covered (19): U.S., Canada, UK, Germany, France, Italy, Spain, Russia, Denmark, Australia, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Segments covered: Service, Type, Application and Region
Companies covered (25): ALS Limited, AmSpec LLC, Apave, Applus Services, BSI Group, Bureau Veritas S. A., Corelab Laboratories, DEKRA, DNV GL, Eurofins Scientific, Exova Group PLC, Intertek Group PLC, Kiwa Group, Lloyd's Register Group, Mistras Group Inc., National Collateral Management Services Ltd, RINA Group, SAI Global Limited, SGS SA, SOCOTEC, SYNLAB, TUV Nord, TUV Rheinland, TUV SUD, UL LLC

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TIC Services Market, By Service

Testing services held a market share of over 65% in 2018 and is estimated to dominate the market share over the forecast timeline. The segment growth is mainly attributed to the rise in globalization, which has further fostered the growth in global sourcing. These global international sourcing practices have increased the demand for testing services due to the presence of different product standards across different regions. With increasing product diversity, there has been a growth in the number of regulations for these products   
 

The certification services segment is projected to exhibit a CAGR of 9% over the forecast timeline. The TIC services market growth is attributed to supportive government initiatives to improve the quality of various goods. The certification is used to demonstrate product compliance through the use of compliance marks on the products. These marks provide product buyers and distributors with the evidence of product compliance. For instance, in November 2018, TUV and ClassNK collaborated to develop a cybersecurity certification scheme for the maritime industry. The collaboration will cater to the growing need among maritime enterprises for efficient cybersecurity certification services.
 

TIC Services Market, By Type

The in-house service held over 58% market share in 2018 and is estimated to maintain the market share over the forecast timeline. In-house testing services provide companies complete control over the entire process. The in-house testing is conducted by companies when it is associated with their core business expertise. For instance, IBM has a dedicated in-house testing division to conduct its product testing. Certain industries including food & beverages are focusing on developing their own dedicated in-house testing services. This is primarily due to short product lifecycle.
 

France Testing, Inspection and Certification (TIC) Services Market Share, By Type, 2018

France Testing, Inspection and Certification (TIC) Services Market Share, By Type, 2018
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The outsourcing TIC services market is expected to show a CAGR of more than 8% over the forecast timeline. Outsourcing also allows companies to utilize varying time zones for their benefit. For instance, a company that operates in the U.S. has its testing facility in Asia. After the employees have completed their daily workload, they can forward their product details to the testing facility in Asia, which will commence hours later. This intersection allows companies the benefit from their customers’ downtime to accomplish deadlines. The external TIC service providers help companies to achieve higher product quality as they employ testing personnel who possess expertise in a wide range of TIC mythologies. This facilitates high-quality assurance across its services.
 

TIC Services Market, By Application

The transportation segment held over 20% market share in 2018 and is estimated to maintain the market share over the forecast timeline. TIC in the transportation sector includes testing, periodic inspection & maintenance of raw materials and components of transport models such as ship, trucks, cars, containers, trains, and aircraft. The marine ways are a major part of the transportation sector and its TIC adds revenue to the market. Testing & inspection of shipment fuel and lubricants, physical, electrical, chemical, and mechanical testing of parts of the carrier vehicle, Restrictions on Hazardous Substances (RoHS) testing is involved in marine transportation TIC. The airways & railways TIC includes tests such as failure analysis, accelerated stress & strain testing, and mechanical, electrical, chemical & RoHS testing.
 

Japan TIC Services Industry Revenue, By Application, 2018, (USD Billion)

Japan TIC Services Industry Revenue, By Application, 2018, (USD Billion)
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The construction segment held more than 15% market share in 2018 and is expected to grow substantially over the forecast timeline. Testing and inspection in this sector include geotechnical & situational testing, design review & analysis, environmental impact analysis, testing of material strength, pavement testing, chemical testing of construction material, electrical wiring inspection, fire system safety audits, supply chain audits, and transportation equipment testing & inspection. Increasing global urbanization along with local politics, advancements in technology, and investments in R&D are driving the growth of the construction TIC services market. For instance, around 55% of the world’s population is urbanized and it is estimated in World Urbanization Prospects that by 2050, about 68% of the world will be urbanized.
 

TIC Services Market, By Region

Europe held more than 40% of the market share in 2018 and is projected to grow significantly over the forecast timeline. The European Union encourages non-governmental organizations, such as the consumer and environmental groups, to actively participate in the EU standardization. Most of the EU standards are developed by European organizations, such as CENELEC, European Committee for Electrotechnical Standardization, European Telecommunications Standards Institute, CEN, and European Committee for Standardization, for handling all other standards. For instance, in 2018, ITA-STQB conducted the Italian Software Testing Forum in Milan. The program mainly focusses on testing & requirements engineering in complex and new emerging domains, crowd testing, testing & requirements engineering for machine learning, and innovation in testing for mobile applications
 

North America TIC services market is estimated to grow at a CAGR of more than 6% over the forecast timeline due to stringent government regulations related to drone testing, food testing, and consumer product testing. For instance, in 2018, the U.S. government developed a new regulation for drone testing. These regulations have developed new standards for drone safety testing. They were also aimed at mandating the need for certification of all unmanned drones. Additionally, the recent upsurge in food safety audits in the region is propelling the market demand. 
 

Competitive Market Share

The presence of numerous TIC services provider makes the market highly fragmented. Prominent market players are focusing on strategic alliances such as collaborations, mergers & acquisitions to hold significant market share. For instance, in October 2018, TUV SUD, NVIDIA, and AVL collaborated to explore the requirements for homologation of highly automated vehicles. The collaboration is anticipated to define safety requirements and the necessary evaluation criteria to establish simulation as a testing tool.
 

The key market players are expanding their global footprint to propel their revenue generation. For instance, in November 2018, the company established a new headquarter in Seoul, which further expanded its footprint in Korea. The company aims to attract up to 50 new experts to strengthen its position in the Korean market.
 

The major players in the TIC services market are ALS, Apave, Applus, Bureau Veritas, Corelab, DEKRA, DNV GL, Eurofins, Intertek, Kiwa Group, LR, RINA, SGS SA, SOCOTEC, SYNLAB, TUV Nord, TUV Rheinland, TUV SUD, and UL.
 

Industry Background

TIC services protect the maintenance of safety, well-being & quality needs of customer services & products. TIC companies are focused on making selective acquisitions to scale up their operations in specific sectors and expand their competencies for customers. These companies have also shown a greater appetite for outsourcing activities through acquisitions of their customers’ operations and joint ventures with their customers. Previously, the optimization of operations is mainly aimed at sweating the assets. The entry of engineers, instrumentation players, and other platform providers brought additional benefits of integrating conventional testing operations with advanced analytics. This has provided an opportunity for further industrial evolution and is attracting new investments in the industry. Structurally, the industry has already experienced instances of virtual TIC services more inclined toward a broker model, whereby the demand aggregation is replaced by physical service provision. This model requires organizations to own a few physical assets.
 


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