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The global Testing, Inspection, and Certification (TIC) market size was valued at USD 208.43 billion in 2021. The market is projected to grow from USD 217.31 billion in 2022 to USD 328.23 billion by 2029, exhibiting a CAGR of 6.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with testing, inspection, and certification experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.7% in 2020 compared to 2019.
In the scope, we have included several players such as SGS SA, Bureau Veritas (BV), DEKRA Certification B.V., Intertek Group PLC, TUV SUD AG, and others. These key players provide testing, certification, and inspection services for multiple industries, including foods & beverages, consumer goods & retail, commercial, and others. These services are used in supply chain certification, product testing, industrial site inspections, periodic inspections, management system auditing and certification, and others.
Rising demand for testing services in the manufacturing sector for consumer products, retail, and food & beverages has fueled the market expansion. Growing consumer goods testing and inspection demand and a rise in online shopping patterns have created a huge potential for TIC market participants. According to the India Brand Equity Foundation Organization, in 2020, the retail industry in India was valued at USD 1.39 billion and is expected to grow to USD 2.14 billion by 2021. Such a surge in consumer goods demand in the world's most populous countries, such as China and India, has spurred demand for testing, certification, and inspection services. With a rise in demand for high-quality and safe consumer goods, numerous major businesses are expanding their testing, inspection, and certification services worldwide. For instance,
Slight Decline in Revenues Owing to Closure of Several Industries amid COVID-19
The COVID-19 outbreak had marginally reduced demand for testing, inspection, and certification services following the closure of various businesses such as manufacturing, consumer goods, retail, and others. The pandemic created a short-term drop in demand due to a pause in new product development operations.
However, the growing use of innovative technology in healthcare, manufacturing, energy, utilities, and other industries has enabled remote auditing, testing, and inspection. As a result of the pandemic, market participants are implementing a digital platform to provide customers with remote TIC services. For instance,
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Integration of Emerging Technologies, such as Blockchain and AI with TIC Services, Aids Market Growth
During the COVID-19 outbreak, online e-commerce websites saw significant demand from the grocery, retail, food, and drinks industries. Several industry leaders implemented advanced technologies such as Artificial Intelligence (AI), machine learning, and Blockchain to improve testing, inspection, and certification services in response to the pandemic. For instance,
Strict Rules and Regulations with Rising Demand for Standardizations of the Products Drive Growth
Government authorities in several countries have made testing and inspection certification mandatory to ensure that items are safe and of high quality. Consumer products must pass quality and safety testing done by an independent lab to meet legal standards. Increasingly stringent laws & regulations for manufacturers worldwide to follow to ensure human and environmental safety propels growth.
For instance, manufacturers in European countries must comply with several safety laws, including the classification, labeling, and packaging/globally harmonized system (CLS/GHS), REACH, CE and RE Marking, EU Children Safety, Toy Safety Act, and others. These criteria are in place to guarantee that items meet quality and safety standards.
Several countries' government authorities are mandating the testing and inspection certification to provide safe and quality products. For instance,
High Cost Associated with TIC Services to Hinder the Market Growth
The cost of TIC services varies depending on the industry, geographical area, and product pricing. In developed countries, TIC services are expensive. For instance, quarterly certification fees across Germany, France, and the U.S. range from USD 500 to USD 1,500 according to the SGS SA testing service provider. Also, according to ALS Limited, the inspection cost of the consumer and retail products ranges from USD 200 to 1,000 in China, India, and others. Such a high cost for the inspection and certification is a costly affair for small & medium scale industry players. Thus, the high cost of these services hampers the Testing, Inspection, and Certification market growth.
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Increasing Manufacturing Investment for Retail and Consumer Goods Drives the Market Growth
The market is classified as testing, inspection, and certification based on service type. Among these, testing is projected to account for the highest market share during the projected period, owing to increased industrial investments and rising consumer product demand globally. Since end-user customers are more concerned with quality and transparency, manufacturers focus on producing and trading high-quality goods ethically, increasing the need for testing services.
Further, certification and inspection services are also growing steadily due to strict rules and regulations for consumer’s health safety in different countries.
Low-cost Conformity Assessment Process offered by Outsourcing TIC Services to Propel the Market Expansion
The market is classified into in-house and outsource based on sourcing type.
Organizations providing in-house and outsourced testing, inspection, and certification service operations may differ from application to application. For instance, attributed to the importance of applications, businesses such as the public sector and mining choose in-house testing, inspection, and certification services over outsourced TIC services. Consumer products and environmental businesses, on the other hand, are more likely to favor outsourcing TIC services.
Outsource is expected to show the fastest growth during the projection period since the third-party TIC is a low-cost conformity assessment process that leads to greater compliance levels. In addition, it helps government agencies increase efficiencies and manage market surveillance resources while also ensuring higher consumer satisfaction with safer products. It also aids manufacturers in lowering internal compliance costs and more effectively navigating the global market regulations.
Growing Adoption of Certified Products through E-commerce Portals Drives the Market Growth
Based on industry, the market is divided into consumer goods & retail, agriculture & food, chemicals, oil & gas, manufacturing, and others. Consumer goods & retail is expected to have the biggest market share during the forecast period due to the growing popularity of e-commerce websites for purchasing retail products. In addition, the testing, certification, and inspection industry is also developing, attributed to increasing customer awareness of standard and certified items via online e-commerce portals. As per May 2021 report by the United Nations Conference on Trade and Development (UNCTAD), the e-commerce sector jumped to USD 26.7 trillion, with retail and consumer goods share increasing from 16% to 19% in 2020. Such an increase in the consumer goods and retail sector surges the demand for certification and testing services around the globe.
Agriculture and food, oil and gas, chemicals, and manufacturing are also expected to grow significantly, resulting in increased international trade operations in these sectors. As per November 2021 report by UNCTAD, world imports and exports of goods in the third quarter of 2021 reached USD 5.6 trillion. These import-export international transactions necessitate a variety of third-party certification, inspection, and testing services for product verification and quality assurance, resulting in market growth.
Europe Testing, Inspection, and Certification (TIC) Market Size, 2021 (USD Billion)
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Based on region, the market is analyzed across five major regions such as Europe, North America, Asia Pacific, South America, and the Middle East & Africa.
Europe is expected to have the largest share in the global market during the forecast period. This is primarily due to several leading players such as Bureau Veritas (BV), SGS SA, DEKRA Certification B.V., TUV SUD AG, Intertek Group PLC, and others. These players are investing a considerable amount in enhancing their services. For instance,
North America is expected to grow steadily during the forecast period. This is primarily due to increasing consumer awareness of the standard and customized products. As per February 2020 CSA Group Testing & Certification Organization Survey, around 69% of North American customers bought goods with the CSA and other certification marks in 2020. The market is growing as a result of increased consumer awareness of standard and certified products.
Asia Pacific is predicted to grow with the highest CAGR during the forecast period. This is due to increased end-user investment in manufacturing, electronics, and automotive businesses in developing countries such as China, Japan, India, and others. Siemens AG, General Electric Company, Toshiba Corporation, HTC Corporation, and other electronics manufacturing corporations are expanding their manufacturing units across Asia. This expansion is projected to generate a wide range of opportunities for TIC service providers. According to the Department for Promotion of Industry and Internal Trade (DPIIT) in India, the manufacturing sector investment in India amounted to USD 100.35 billion from April 2000 to June 2021.
The Middle East & Africa is projected to increase at a moderate CAGR throughout the projected period due to increase in oil & gas exports and imports of consumer goods, food, and beverages. According to the World Integrated Trade Solution Organization, the total value of these sectors' exports was USD 924,462 million in 2019. It generated numerous growth opportunities of the TIC services sector.
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Similarly, South America is anticipated to rise at a significant CAGR during the projection period. This is primarily due to an increase in foreign trade activity and rise in agricultural investment.
Rising Expansion Strategy by Players and Adoption of AI Technology Drive the Market Growth
Key companies, such as SGS SA, Bureau Veritas (BV), DEKRA Certification B.V., Intertek Group PLC, TÜV SÜD AG, and others, are focusing on providing advanced facilities. Through the use of business strategies, such as mergers, acquisitions, and partnerships, these players are growing their services in a number of countries throughout the world. For instance,
An Infographic Representation of Testing, Inspection, & Certification (TIC) Market
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The global Testing, Inspection, and Certification (TIC) market research report highlights leading regions worldwide for better understanding of the user. Furthermore, the report provides insights into the latest key market trends, market share, market size, and global analysis of technologies deployed globally. The market report further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market. This market includes industry analysis, report, overview, outlook, growth strategies, and overall market size.
Value (USD billion)
By Service Type, Sourcing Type, Industry, and Region
By Service Type
By Sourcing Type
The market is projected to reach USD 328.23 billion by 2029.
In 2021, the market size stood at USD 208.43 billion.
The market is projected to grow at a CAGR of 6.1%.
The testing segment is likely to lead the market.
The increasing international trade and rising consumer awareness toward standardized products are escalating the market growth.
SGS SA, Bureau Veritas (BV), DEKRA Certification B.V., Intertek Group PLC, TUV SUD AG, and APPLUS+ are the top players in the market.
Europe is expected to hold the largest global share in the market.
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