Asia Pacific Testing, Inspection and Certification (TIC) Market

Market Overview

The Asia Pacific testing, inspection and certification (TIC) market size was valued at USD 94 million in 2021 and is projected to reach USD 156 million by 2030, registering a CAGR of 5.8% during the forecast period (2022-2030).

Highlights

• Testing dominates the market by service sourcing type.
•  Infrastructure dominates the market by application.
• The in-house segment dominates by sourcing type.

The terms "testing," "inspection," and "certification," or "TIC," refer to the services involved in putting a variety of goods, materials, and services through testing, inspection, and certification procedures to make sure they adhere to legal requirements and professional standards.

The market offers a broad range of services, such as certification of goods, procedures, and management systems, testing of products, machinery, and software, building inspection, industrial equipment testing, and vehicle inspection.

Due to the region's expanding economy and rising regulatory standards, the Asia-Pacific region offers the TIC market several development opportunities. The region's growing middle class is boosting consumer product consumption, raising the demand for TIC services in the automotive, electronics, and healthcare sectors. Furthermore, there is a demand for quality control and risk management services due to the region's robust industrial sector.

Market Dynamics

Asia Pacific Testing, Inspection, and Certification (TIC) Market Drivers

Economic Growth

The Asia-Pacific region offers the TIC market several development opportunities due to the region's expanding economy and rising regulatory standards. The region's growing middle class is boosting consumer product consumption, raising the demand for TIC services in the automotive, electronics, and healthcare sectors. Furthermore, there is a demand for quality control and risk management services due to the region's robust industrial sector.

Growing Healthcare Sector

The Asia-Pacific region's healthcare industry is expanding quickly due to several variables, such as an aging population, an increase in the prevalence of chronic diseases, and rising healthcare costs. The region's expanding middle class is also raising the demand for improved healthcare services, opening doors for TIC services in industries like pharmaceuticals, clinical trials, and testing medical devices. Demand for TIC services is also fueled by the healthcare sector's escalating regulatory requirements, which businesses must adhere to guarantee the security and effectiveness of their goods. Additionally, the Asia-Pacific area is growing as a medical travel center, increasing the demand for TIC services that ensure the quality and security of medical care delivered to patients from abroad.

Asia Pacific Testing, Inspection, and Certification (TIC) Market Restraints

Competition from Local Players

The Asia-Pacific TIC market can experience fierce competition from local players for several factors. First, local businesses can benefit from offering TIC services because they are more familiar with their home nations' legal framework and industry standards. Additionally, they might already have established customer connections, making it challenging for emerging foreign businesses to compete.

Additionally, because labor and operating costs are cheaper locally, TIC service providers can charge less. International businesses may need help to succeed, mainly if they cannot provide value-added services or unique product offerings.

Asia Pacific Testing, Inspection, and Certification (TIC) Market Opportunities

Rapidly Growing Industries

The demand for TIC services is anticipated to be driven by the rapidly expanding industries in the Asia-Pacific area, including healthcare, automotive, and Construction. The aging population and rising healthcare costs drive demand for pharmaceuticals and medical equipment in the healthcare industry, which needs TIC services to ensure that they adhere to rules and regulations. The rise of electric and hybrid vehicles in the automotive sector boosts demand for TIC services connected to battery testing and safety certification. There is a sizable demand for TIC services related to building and construction material testing and certification because the region's construction industry is also flourishing, especially in nations like China and India. 

Regional Analysis

The Asia-Pacific region's testing, inspection, and certification (TIC) services market is expanding quickly. Due to its extensive manufacturing sector and emphasis on quality and safety, China is the world's biggest market. India is another sizable market with a rapidly expanding economy and a focus on quality and safety in the healthcare and construction sectors. Other significant markets with well-established TIC businesses include Japan and South Korea. The rest of Asia-Pacific, which includes nations like Vietnam and Indonesia, is anticipated to experience substantial growth due to the region's expanding manufacturing sector, rising consumer awareness of product quality and safety, and the development of new technologies.

Segmental Analysis

The Asia-Pacific testing, inspection, and certification (TIC) market is segmented based on service sourcing type and application.

The service sourcing type is further segmented into Testing, Inspection, and Certification for a better understanding.

The testing segment dominated the APAC market and is expected to register a CAGR of 5.6% over the forecast period.

The segment can be bifurcated by application into Consumer Goods and Retail Agriculture and Food Chemicals, Infrastructure Energy and Power Education, Government Manufacturing, Healthcare, Mining Oil and Gas, and Petroleum Public Sector Automotive Aerospace and Defense Supply Chain and Logistics.

The infrastructure segment dominated the market and is expected to grow at a CAGR of 6.2% during the forecast period.

Based on sourcing type, the market is sub-segmented into In-house, Outsourced.

The in-house segment is expected to dominate the market, registering the highest CAGR of 5.1% over the forecast period.

Recent Developments

• April 2023- Based on the SURE system, DEKRA audits and verifies sustainable biomass. Therefore, economic actors can offer unbiased proof that they comply with the regulatory requirements for sustainable energy generation or heating and cooling generation.
• March 2023- In Taiwan, Onward Security became a well-known supplier of cybersecurity solutions. Expert organization DEKRA, a worldwide leader in safety, security, and sustainability, has announced its acquisition of Onward Security.