ALBANY, New York --- Global testing, inspection, and certification market is projected to report a CAGR of 5.7% between 2016 and 2024. At this pace the market, which stood at US$178.65 bn in 2015, is expected to reach US$285.34 bn by the end of 2024. Based on application, the oil and gas industry emerged dominant and the largest contributor to the revenue generated by the overall market. The industry held a share of over 35% in the global TIC market in 2015. TMR projects the segment to remain dominant through the course of the forecast period, however, the food and beverages industry is also expected to gain prominence during this time.
Rising International Trade to Boost Demand for Stricter TIC Regulations
"Regulations ascertaining the quality of products and their impact on the health and wellbeing of consumers and environments have become stricter in the past few years," observed the TMR report's author. This has been fuelling the demand for testing, inspection, and certification around the world. The market is also expected to gain impetus from the rising international trade. TIC is therefore considered necessary to conform the diverse safety standards and qualities of foreign products as per the laws of the importing country. Also product manufacturers have started considering adherence to widely accepted TIC methods necessary to be able to expand their footprint across the most lucrative markets in the world. These factors are thus expected to have a sizeable impact on the global TIC market.
Absence of Internationally Accepted Standards Emerged as Key Restraint
On the downside, countries across the globe have different set of TIC guidelines and standards, which also differ based on type of products and industries. The highly diversified set of regulations could often create bottlenecks for promoting international trade, thereby creating hindrance for the growth of the global TIC market.
The pharmaceutical industry suffers the most in this regard as drug manufacturers find it difficult to develop drugs and therapies that will find easy approvals across all countries they are submitted. Therefore, the absence of internationally accepted standards has emerged as key restraint for the global TIC market.
Nevertheless, opportunities across emerging nations and recent technological advancements will make certification necessary for innovation at every stage. This is expected to give significant impetus to the global testing, inspection, and certification market in the coming years.
The intense fragmentation of the global testing, inspection, and certification (T.I.C.) market is a result of various factors. The fact that the market caters to diverse industries including food and beverages, telecom, automotive, oil and gas, medical devices, aerospace, and many others have provided players immense opportunities for specialization, thereby intensifying the competitive trends in the market. As per a new study by Transparency Market Research (TMR), the top four vendors held nearly 29% of the global market in 2015. These companies were Dekra SE, Intertek Group PLC, Bureau Veritas SA, and SGS Group.
However, in Europe the market exhibits a fairly consolidated vendor landscape, as the most prominent vendors are headquartered in the region. "Innovation of more extensive certification guides for high growth potential industries help these companies continue witnessing sustainable growth in the market," said a lead TMR analyst
This review is based on information published by TMR in a report, titled "Testing, Inspection and Certification (T.I.C.) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024."
The report segments the global testing, inspection, and certification market as:
Global testing, inspection, and certification market, by Application
•Oil & gas
•Food & beverages
Global testing, inspection, and certification market, by Geography:
•Middle East and Africa
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