Latin America Testing, Inspection and Certification (TIC) Market

Market Overview

The Latin America testing, inspection, and certification (TIC) market size was valued at USD 22 million in 2021 and is projected to reach USD 29 million by 2030, registering a CAGR of 3.0% 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.

Testing, Inspection, and Certification (TIC) offers testing, inspection, and certification services throughout Latin America in various industries, including consumer products, industrial equipment, food and beverage, and automotive.

The increasing emphasis on product quality and safety, the expansion of standards and regulations for different sectors, and the rising need for certification services in developing nations have contributed to the growth of the Latin American TIC market.

The previously stated businesses—Bureau Veritas, DEKRA SE, DNV, Eurofins Scientific, Intertek Group PLC, and Mistras Group, Inc.—as well as others like SGS SA, TUV SUD, UL LLC, and others—are some of the major players in the Latin American TIC market.

Market Dynamics

Latin America Testing, Inspection, and Certification (TIC) Market Drivers

The Emergence of New Industries

The emergence of new industries in Latin America, like renewable energy, electric vehicles, and cybersecurity, has necessitated specialized TIC services. Several factors fuel these industries' development, including government initiatives, rising investments, and growing consumer demand.

For instance, Latin American nations are making significant investments in wind and solar energy in the renewable energy industry to lessen their reliance on fossil fuels. TIC services are needed to ensure that the machinery and systems employed in these projects adhere to the necessary quality and safety standards.

Similarly, the expansion of the Latin American electric car market is fueling demand for TIC services to guarantee the dependability and safety of these vehicles. The need for TIC services to ensure the security and integrity of systems and networks is driven by the substantial growth the cybersecurity industry is experiencing.

Growing Focus on Quality and Safety

Latin America is increasingly emphasizing quality and safety, fueled by customer awareness, governmental rules, and the adoption of foreign standards. In particular, businesses in the food and beverage, pharmaceutical, and consumer goods sectors are investing in TIC services to ensure their products satisfy the highest standards and are safe for use. As businesses seek accreditation and conformity with laws and standards to prove their dedication to quality and safety, the demand for TIC services is rising.

Latin America Testing, Inspection, and Certification (TIC) Market Restraints

Lack of Awareness

A significant barrier to the growth of the TIC industry in Latin America, especially in the region's emerging economies, is the need for more knowledge about the advantages of TIC services. The market expansion may be improved if businesses recognize the benefits of TIC services regarding quality, safety, and compliance. The significance of quality and safety standards and how vital TIC services are in ensuring that the goods they consume adhere to these standards may also need to be acknowledged by consumers. Latin American TIC service providers may need to launch educational campaigns to increase knowledge of the value of quality, safety, and adherence to rules and standards to get around this restriction.

Latin America Testing, Inspection, and Certification (TIC) Market Opportunities

Infrastructure Development

There is an increasing need for TIC services to guarantee the quality and safety of new projects, such as roads, bridges, and buildings, as Latin America continues to develop its infrastructure. TIC service suppliers now have the chance to broaden their selection and take advantage of the rising demand for their products.

Segmental Analysis

The Latin America 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 Latin American market and is expected to register a CAGR of 2.7% 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 3.4% 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 2.3% over the forecast period.

Regional Analysis

A growing number of regulations and standards set by governments and industry bodies, as well as rising consumer awareness of quality and safety standards, are driving the growth of the Latin American TIC market. The market can be divided into several regions, including Brazil, which has a well-established TIC industry and robust regulatory framework; Mexico, which has a TIC industry that is rapidly expanding and is placing more emphasis on regulatory compliance; Argentina, which has adopted international standards and set a strong focus on quality and safety standards; Chile, which has a strong power on environmental and sustainability standards; and Colombia, which has a relatively small but rapidly expanding TIC market.

Recent Developments

• April 2023- Based on the SURE system, DEKRA now 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- the Construction of a sustainable cable car transit system in Mexico will be supervised by Bureau Veritas.