Testing, Inspection, and Certification Market: Information by Type (In-House, Outsourced), Application(Commodities, Industry, Life Science and Pharma), and Region—Forecast till 2029

May 24, 2019   Testing, inspection, and certification services are provided by the global manufacturers and the regional vendors to access and certify the quality and homogeneity of the products manufactured under its facilities. For the tier-1 operators, these procedures provide multiple advantages, such as risk management, a significant upsurge in productivity, and aids set a high benchmark in quality and operational safety. It allows the local players to match the global standards and compete with the globa...
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Report Description

Testing, inspection, and certification services are provided by the global manufacturers and the regional vendors to access and certify the quality and homogeneity of the products manufactured under its facilities. For the tier-1 operators, these procedures provide multiple advantages, such as risk management, a significant upsurge in productivity, and aids set a high benchmark in quality and operational safety. It allows the local players to match the global standards and compete with the global players. All the products undergo higher scrutiny and are obliged to meet the certification standards of various regulatory authorities. With more and more manufacturers competing across the multiple regional markets, the testing, inspection, and certification services have gained traction.

The testing, inspection, and certification assembly assesses the product quality and rates its safety and operational viability. The stringent global quality standards are anticipated to bolster the mandatory requirement of testing, inspection, and certification assembly for every manufacturer operating in different sectors.

Testing-Inspection-and-Certification-Market

Market Drivers

The Imposition of Rigorous Import-Export Government Regulations

Regulatory guidelines, standards, and certifications associated with quality, health, and environmental safety have become stringent in the past couple of years. Thus, the demand for outsourced services is recording significant growth. The increasing demand from the end-use industry seeking third-party assurance, improved risk awareness, and a rising focus on risk prevention has boosted the demand for testing, inspection, and certification market. With increasing competition across all the application industry verticals, many manufacturers are setting up their production facilities across multiple regions. The inspection unit of the companies is outsourcing their testing and inspection procedure to professional service providers. Thus, distribution of production facilitates across multiple regions to cope up with import-export regulations is anticipated to bolster the market growth during the forecast period.

Growing Consumption of Goods in Emerging Countries

Increasing consumption of goods and services including cars, houses, appliances, computers, furniture, among other, growing construction industry and agro-food, power and utilities, chemicals, metals, and minerals sector are the factors contributing to the market growth. According to Eurostat, world exports of goods and services reached nearly USD 15,389 in 2016.

Many customers in the developing countries in South America and Asia-Pacific have increased utilization of cars, electronic appliances. This growth provides an optimistic scenario for the market growth has encouraged the manufacturers to increasingly develop products in compliance with the standards and regulations of national and international authorities. The third-party services assure safer and reliable products thus, boosting the market demand.

Increasing Globalization, Process Outsourcing, and Acquisition

Increased global production has triggered TIC companies to adapt their services to the global supply chain changes. Hence, the company can test, inspect, and certify products regardless of the location where the product is manufactured or installed. Strict norms and regulatory restrictions have increased the customer traction towards outsourcing the testing inspection and certification jobs. At present, nearly 38to 40% of the jobs are outsourced to the dedicated TIC firms.

Market players have adopted acquisition as a key strategy to expand and explore further market growth opportunities. Third-party service provider companies, such as SGS SA, Bureau Veritas S. A., DEKRA Testing and Certification GmbH, and other, acquire small venture that provides different types of testing and analytical services. For instance, SGSacquired 20 firms, 8 firms in 2017 and 12 in 2018, which is anticipated to strengthen the organization’s revenue up to CHF 10 million.

Impact of COVID-19

Due to the coronavirus outbreak, there has been a considerable disruption in the supply chain and value chain across the global market. A substantial downturn in the manufacturing and products sales across different sectors also reduced the market developments curbing the current revenue shares of the global market. Also, many manufacturers have temporarily reduced their operations at multiple operating facilities to reduce overhead operational costs owing to reduced profit margins and revenue collections. This reduction in operations is limiting the development prospects.

Segmental Overview

Outsourced Segment to Record Highest Market Share

Many prominent global players, such as BASF, General Electric, Siemens, and others, developed in-house testing inspection and certification facilities to increase random testing and certification processes for its services and products. They have a dedicated quality assurance department that looks after the product testing, inspection, and certification. These streamlined and efficient quality assurance departments increase the company's reliability and provide more assured services. Their departments are fully equipped with advanced tools, analytical techniques, and other required instruments to perform different tests. These companies have an experienced team with certified accreditation through which the products are passed.

In the past, manufacturers operating in different sectors were required to comply with the limited regulatory obligation, thus making in-house testing, inspection, and certification setup self-sufficient. Lately, user safety norms and stringent environmental regulations have made testing and inspection operations a tedious process. This trend has catalyzed the outsourcing of these operations specialized and dedicated third-party operators. As a result, the outsourced segment is anticipated to exhibit the highest CAGR of 5.9% during the forecast period.

Industry Segment Continues to Dominate the Market

Industrial machinery and manufacturing-related testing, inspection, and certification services ensure quality control, meeting contractual obligations, governmental regulations, standardization, and following practice codes throughout the supply chain. Many countries demand that products meet a wide range of stringent international and regional regulations during the manufacturing and product finalizing process. Oil and gas, petroleum, and transportation-related services, including automotive, marine, rail, aerospace, and defense, require mandatory testing, inspection, and certification at every step before product release in the market.

From ADR-tanks to hoisting devices, conveyors, weighing devices, storage tanks, lifting doors, loading docks, electrical railway networks, port devices, airplanes require assessment and certified management system. Testing of these aids in evaluating defects with non-destructive methods, such as ultrasonic or x-ray in, for example, ships’ hulls and wagon trailer axels. The TIC services help with comprehensive material testing, quality management system certification, product certification, and others. EMC testing, ESPE testing, explosion protection, cable testing, CE marking for machinery, accessories testing are examples of TIC testing at the industry level.

Regional Overview

North America to Record SignificantMarket Growth

North America is anticipated to record significant market growth during the forecast period. This growth can be attributed to growing regional government regulations. Manufacturers need to operate within the jurisdiction of the U.S. to undergo four stringent and meticulous stages of assessment and certification process.

The first is to identify if the product is subject toU.S. regulations, the second stage involves assuring the U.S. government regulations, the third deals with private sector standards and the fourth stage seeks self-declaration from the manufacturer.To a gain permit to operate in the North American market, numerous manufacturers take the onus of testing, inspection, and certification operations. Many conformity-assuring third-party operators have gained sizeable traction in North America.

China And India to Bolster the Asia-Pacific Market Growth

China is continuously enhancing its product standards to cement its economic efficiency. For instance, to increase hygiene standards and standards of health and safety of the consumers, the food and drug authorization department is increasing the frequency of random inspections across the regions. The China government is keen to elevate the product standards and certification and authorization levels. To remain prepared for government reforms, many customers are expected to pace up their arrangements for testing, inspection, and certification operations.

India has made great efforts to match national standards that are in-line with international norms, and most Indian standards correspond with the International Organization for Standardization. The emphasis on product standards is growing in India across various industry sectors owing to high pressure from consumer rights groups, NGOs, and environmental activists.

Recently, the Government of India has passed a revised bill to replace the 30-year-old Bureau of Indian Standards (BIS) Act in March 2016, under which the Central Government has been empowered to authorize any other agency having necessary accreditation for conformity assessment against Indian standards. Many Indian manufacturing companies are investing in standards accreditation, which has won them the Deming prize for total quality management.

Testing-Inspection-and-Certification-Market-Regional-Overview

Source: World Economic Forum

Key Players

According to Straits Analysis, prominent players in the global testing, inspection, and certification market are SGS Group, Bureau Veritas, Dekra Certification, Intertek, TUV SUD, Eurofins Scientific, DNV TUV Rheinland, UL LLC, ALS Limited, TUV Nord Group, Mistras Group, SAI Global, BSI Group, and, Element Material Technology (Exova Group Plc), among others.

Testing, Inspection, and Certification Market: Segmentation

By Type

  • In-House
  • Outsourced

By Application

  • Consumer Product
  • Commodities
  • Industry
  • Life Science and Pharma
  • Others

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • The U.K
  • Italy
  • France
  • Russia
  • Spain
  • BENELUX
  • The Rest of Europe

The Middle East and Africa (MEA)

  • Saudi Arabia
  • Egypt
  • South Africa
  • The Rest of MEA

The Asia-Pacific

  • India
  • China
  • Japan
  • Australia
  • South Korea
  • The Rest of Asia-Pacific

South America

  • Brazil
  • Chile
  • Colombia
  • Peru
  • Argentina
  • The Rest of South America

Frequently Asked Questions (FAQs)

The increasing demand from the end-use industry seeking third-party assurance, improved risk awareness, and a rising focus on risk prevention, Increasing consumption of goods and services are the key factors expected to drive Testing, Inspection, and Certification Market during the forecast period.
North America is expected to hold the highest market share in Testing, Inspection, and Certification Market.
SGS Group, Bureau Veritas, Dekra Certification, Intertek, TUV SUD, Eurofins Scientific, DNV TUV Rheinland, UL LLC, ALS Limited, TUV Nord Group, Mistras Group, SAI Global, BSI Group are the top players in Testing, Inspection, and Certification Market.
Outsourced Segment is expected to be the leading segment in Testing, Inspection, and Certification Market during the forecast period.
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Testing, inspection, and certification services are provided by the global manufacturers and the regional vendors to access and certify the quality and homogeneity of the products manufactured under its facilities. For the tier-1 operators, these procedures provide multiple advantages, such as risk management, a significant upsurge in productivity, and aids set a high benchmark in quality and operational safety. It allows the local players to match the global standards and compete with the global players. All the products undergo higher scrutiny and are obliged to meet the certification standards of various regulatory authorities. With more and more manufacturers competing across the multiple regional markets, the testing, inspection, and certification services have gained traction.

The testing, inspection, and certification assembly assesses the product quality and rates its safety and operational viability. The stringent global quality standards are anticipated to bolster the mandatory requirement of testing, inspection, and certification assembly for every manufacturer operating in different sectors.

Testing-Inspection-and-Certification-Market

Market Drivers

The Imposition of Rigorous Import-Export Government Regulations

Regulatory guidelines, standards, and certifications associated with quality, health, and environmental safety have become stringent in the past couple of years. Thus, the demand for outsourced services is recording significant growth. The increasing demand from the end-use industry seeking third-party assurance, improved risk awareness, and a rising focus on risk prevention has boosted the demand for testing, inspection, and certification market. With increasing competition across all the application industry verticals, many manufacturers are setting up their production facilities across multiple regions. The inspection unit of the companies is outsourcing their testing and inspection procedure to professional service providers. Thus, distribution of production facilitates across multiple regions to cope up with import-export regulations is anticipated to bolster the market growth during the forecast period.

Growing Consumption of Goods in Emerging Countries

Increasing consumption of goods and services including cars, houses, appliances, computers, furniture, among other, growing construction industry and agro-food, power and utilities, chemicals, metals, and minerals sector are the factors contributing to the market growth. According to Eurostat, world exports of goods and services reached nearly USD 15,389 in 2016.

Many customers in the developing countries in South America and Asia-Pacific have increased utilization of cars, electronic appliances. This growth provides an optimistic scenario for the market growth has encouraged the manufacturers to increasingly develop products in compliance with the standards and regulations of national and international authorities. The third-party services assure safer and reliable products thus, boosting the market demand.

Increasing Globalization, Process Outsourcing, and Acquisition

Increased global production has triggered TIC companies to adapt their services to the global supply chain changes. Hence, the company can test, inspect, and certify products regardless of the location where the product is manufactured or installed. Strict norms and regulatory restrictions have increased the customer traction towards outsourcing the testing inspection and certification jobs. At present, nearly 38to 40% of the jobs are outsourced to the dedicated TIC firms.

Market players have adopted acquisition as a key strategy to expand and explore further market growth opportunities. Third-party service provider companies, such as SGS SA, Bureau Veritas S. A., DEKRA Testing and Certification GmbH, and other, acquire small venture that provides different types of testing and analytical services. For instance, SGSacquired 20 firms, 8 firms in 2017 and 12 in 2018, which is anticipated to strengthen the organization’s revenue up to CHF 10 million.

Impact of COVID-19

Due to the coronavirus outbreak, there has been a considerable disruption in the supply chain and value chain across the global market. A substantial downturn in the manufacturing and products sales across different sectors also reduced the market developments curbing the current revenue shares of the global market. Also, many manufacturers have temporarily reduced their operations at multiple operating facilities to reduce overhead operational costs owing to reduced profit margins and revenue collections. This reduction in operations is limiting the development prospects.

Segmental Overview

Outsourced Segment to Record Highest Market Share

Many prominent global players, such as BASF, General Electric, Siemens, and others, developed in-house testing inspection and certification facilities to increase random testing and certification processes for its services and products. They have a dedicated quality assurance department that looks after the product testing, inspection, and certification. These streamlined and efficient quality assurance departments increase the company's reliability and provide more assured services. Their departments are fully equipped with advanced tools, analytical techniques, and other required instruments to perform different tests. These companies have an experienced team with certified accreditation through which the products are passed.

In the past, manufacturers operating in different sectors were required to comply with the limited regulatory obligation, thus making in-house testing, inspection, and certification setup self-sufficient. Lately, user safety norms and stringent environmental regulations have made testing and inspection operations a tedious process. This trend has catalyzed the outsourcing of these operations specialized and dedicated third-party operators. As a result, the outsourced segment is anticipated to exhibit the highest CAGR of 5.9% during the forecast period.

Industry Segment Continues to Dominate the Market

Industrial machinery and manufacturing-related testing, inspection, and certification services ensure quality control, meeting contractual obligations, governmental regulations, standardization, and following practice codes throughout the supply chain. Many countries demand that products meet a wide range of stringent international and regional regulations during the manufacturing and product finalizing process. Oil and gas, petroleum, and transportation-related services, including automotive, marine, rail, aerospace, and defense, require mandatory testing, inspection, and certification at every step before product release in the market.

From ADR-tanks to hoisting devices, conveyors, weighing devices, storage tanks, lifting doors, loading docks, electrical railway networks, port devices, airplanes require assessment and certified management system. Testing of these aids in evaluating defects with non-destructive methods, such as ultrasonic or x-ray in, for example, ships’ hulls and wagon trailer axels. The TIC services help with comprehensive material testing, quality management system certification, product certification, and others. EMC testing, ESPE testing, explosion protection, cable testing, CE marking for machinery, accessories testing are examples of TIC testing at the industry level.

Regional Overview

North America to Record SignificantMarket Growth

North America is anticipated to record significant market growth during the forecast period. This growth can be attributed to growing regional government regulations. Manufacturers need to operate within the jurisdiction of the U.S. to undergo four stringent and meticulous stages of assessment and certification process.

The first is to identify if the product is subject toU.S. regulations, the second stage involves assuring the U.S. government regulations, the third deals with private sector standards and the fourth stage seeks self-declaration from the manufacturer.To a gain permit to operate in the North American market, numerous manufacturers take the onus of testing, inspection, and certification operations. Many conformity-assuring third-party operators have gained sizeable traction in North America.

China And India to Bolster the Asia-Pacific Market Growth

China is continuously enhancing its product standards to cement its economic efficiency. For instance, to increase hygiene standards and standards of health and safety of the consumers, the food and drug authorization department is increasing the frequency of random inspections across the regions. The China government is keen to elevate the product standards and certification and authorization levels. To remain prepared for government reforms, many customers are expected to pace up their arrangements for testing, inspection, and certification operations.

India has made great efforts to match national standards that are in-line with international norms, and most Indian standards correspond with the International Organization for Standardization. The emphasis on product standards is growing in India across various industry sectors owing to high pressure from consumer rights groups, NGOs, and environmental activists.

Recently, the Government of India has passed a revised bill to replace the 30-year-old Bureau of Indian Standards (BIS) Act in March 2016, under which the Central Government has been empowered to authorize any other agency having necessary accreditation for conformity assessment against Indian standards. Many Indian manufacturing companies are investing in standards accreditation, which has won them the Deming prize for total quality management.

Testing-Inspection-and-Certification-Market-Regional-Overview

Source: World Economic Forum

Key Players

According to Straits Analysis, prominent players in the global testing, inspection, and certification market are SGS Group, Bureau Veritas, Dekra Certification, Intertek, TUV SUD, Eurofins Scientific, DNV TUV Rheinland, UL LLC, ALS Limited, TUV Nord Group, Mistras Group, SAI Global, BSI Group, and, Element Material Technology (Exova Group Plc), among others.

Testing, Inspection, and Certification Market: Segmentation

By Type

  • In-House
  • Outsourced

By Application

  • Consumer Product
  • Commodities
  • Industry
  • Life Science and Pharma
  • Others

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • The U.K
  • Italy
  • France
  • Russia
  • Spain
  • BENELUX
  • The Rest of Europe

The Middle East and Africa (MEA)

  • Saudi Arabia
  • Egypt
  • South Africa
  • The Rest of MEA

The Asia-Pacific

  • India
  • China
  • Japan
  • Australia
  • South Korea
  • The Rest of Asia-Pacific

South America

  • Brazil
  • Chile
  • Colombia
  • Peru
  • Argentina
  • The Rest of South America

Frequently Asked Questions (FAQs)

The increasing demand from the end-use industry seeking third-party assurance, improved risk awareness, and a rising focus on risk prevention, Increasing consumption of goods and services are the key factors expected to drive Testing, Inspection, and Certification Market during the forecast period.
North America is expected to hold the highest market share in Testing, Inspection, and Certification Market.
SGS Group, Bureau Veritas, Dekra Certification, Intertek, TUV SUD, Eurofins Scientific, DNV TUV Rheinland, UL LLC, ALS Limited, TUV Nord Group, Mistras Group, SAI Global, BSI Group are the top players in Testing, Inspection, and Certification Market.
Outsourced Segment is expected to be the leading segment in Testing, Inspection, and Certification Market during the forecast period.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.