North America Testing, Inspection and Certification (TIC) Market

Market Overview

The North America testing, inspection, and certification (TIC) market size was valued at USD 81 billion in 2021 and is projected to reach USD 115 billion by 2030, registering a CAGR of 4.0% during the forecast period (2022-2030).

Highlights

• Testing dominates the market by service sourcing type.
•  Infrastructure dominates the market by application.

Testing, Inspection, and Certification (TIC) refers to the services involved in examining, certifying, and testing a variety of goods, materials, and services to ensure they meet industry and legal requirements.

The market offers various services, including certification of goods, procedures, and management systems, testing of electrical equipment, mechanical systems, and software, and inspection of buildings, industrial equipment, and vehicles.

The main factors influencing the development of the TIC market in North America are the demand for quality assurance and safety of goods and services, strict laws and standards, and the expansion of international trade. The market is highly fragmented and competitive, with several major companies working in the area, including SGS, Bureau Veritas, Intertek, and TÜV SÜD.

Market Dynamics

Market Drivers

Increasing Demand for Quality Assurance and Safety

Numerous reasons motivate the demand for quality assurance and safety, including growing consumer awareness, increased competition, and the need to prevent reputational harm from product recalls or safety issues. Additionally, the TIC market is essential in ensuring compliance with the stringent quality and safety standards of the healthcare, automotive, and aerospace sectors. In addition to accreditation of management systems like ISO 9001 (quality management) and ISO 14001, the TIC services include testing and inspection of goods and services to ensure they adhere to the necessary quality and safety standards.

Stringent Regulation and Standards

Governments and regulatory agencies have put strict laws and guidelines to guarantee the safety and caliber of goods and services. These laws are designed to safeguard customers, employees, and the ecosystem. Violating these rules may result in hefty penalties, legal liability, and reputational harm. The TIC market offers the services required to guarantee adherence to these rules and requirements. For instance, the US Environmental Protection Agency (EPA) mandates the testing and certification of environmental goods and services. In contrast, the US Food and Drug Administration (FDA) mandates the testing and certification of pharmaceuticals and medical devices. The TIC market is crucial in ensuring compliance with the rules required to operate in these industries.

Market Restraints

Limited Awareness

Although there is a growing understanding of the value of TIC services among some companies and consumers, this understanding is common. Some companies consider TIC services an extra expense rather than an expenditure required to guarantee the security and caliber of their goods and services. Similar to how some customers might need to be more conscious of how TIC services help ensure that their products are high-quality and safe. This lack of knowledge may result in a decline in the desire for TIC services, affecting the market's expansion.

Market Opportunities

Adoption of Digital Technologies

Implementing digital technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) gives TIC service providers a chance to increase the effectiveness and precision of their offerings. Blockchain can create an immutable record of test results and certifications, while AI can analyze vast amounts of data to spot possible quality and safety issues. These technologies' integration can aid TIC service providers in providing more dependable and effective services, boosting client satisfaction and spurring development.

Regional Analysis

The growing demand for quality and safety standards across numerous sectors, including the automotive, aerospace, healthcare, mining, energy, and construction, drives the North American Testing, Inspection, and Certification (TIC) market. Due to its numerous industries and intense rivalry, the United States is North America's largest market for TIC services. High levels of technical proficiency and innovation, as well as an established regulatory framework, are what fuel the Canadian TIC industry. A rising desire for quality and safety standards and an increase in the adoption of international standards define the Mexican TIC market. The Caribbean islands and Central America are other North American TIC market nations. These regions are characterized by rising demand for specialized services like food testing and regulation. TIC service providers can enter the North American TIC market by taking advantage of opportunities like the adoption of digital technologies, expansion into emerging markets, diversification of services, cooperation with governmental organizations, and an emphasis on sustainability.

Segmental Analysis

The North America testing, inspection, and certification (TIC) market is segmented based on service sourcing type and application.

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

The testing segment dominated the North American market and is expected to register a CAGR of 3.7% 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 4.4% during the forecast period.

Recent Developments

• March 2023- Bureau Veritas will supervise the construction of a sustainable cable car transit system in Mexico.
• 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.