Testing Inspection and Certification Market is expected to grow US$ 379.89 Billion at a CAGR of 5.2% during 2019-2027

• Published Month : Friday, 06 Sep 2019 03:44 pm

Enhancements in product quality, management, manufacturing processes, supply chains, as well as, service value have become vital for the growth of any business, imposing a requirement for the testing, inspection & certification market.

The global testing, inspection & certification market accounted at US$ 243.21 Billion in 2018 and is expected to grow at a CAGR of 5.2% during the forecast period 2019 – 2027, to account to US$ 379.89 Billion in 2027.

Asia Pacific region has become a global manufacturing hub with the presence of diverse manufacturing industries. Among China’s evolution into a high-skilled manufacturing hub, other developing countries such as India, South Korea, Taiwan, and Vietnam among others are attracting several businesses that are in a quest to relocate their low to medium skilled manufacturing facilities to neighboring countries, offering lower labor cost. Further, the governments of these countries are making developments to improve investment ideas. Over the years, the manufacturing spending of the region has grown significantly and is further anticipated to grow at the highest estimated growth rate.

Furthermore, the presence of diverse economies in the region has resulted in requirements for different certifications for different products and services. Some of the common accreditations are Australian Communications Authority (ACA), China Accreditation Committee for Laboratories (CNAL), Department of Standards Malaysia, Bureau of Standards, Metrology and Inspection (BSMI), DENAN, METI Japan, and International Electrotechnical Commission of Electrical Equipment (IECEE), among others.

Testing, inspection & certification market is segmented on the basis of the end-user. The governments globally have implemented strict quality regulations on nearly all industry vertical. Whether it is automobile, construction, healthcare, energy, or other industries. Constant development in products and components have compelled upgraded testing, inspection & certification requirements. Enhancements in product quality, management, manufacturing processes, supply chains, as well as, service value have become vital for the growth of any business, imposing a requirement for the testing, inspection & certification market.

In 2018, manufacturing & construction segment by end-user is expected to dominate the testing, inspection & certification market. With the boom in urban population, demand for sustainable, safe buildings is rising along with a safe urban environment. Thus, policymakers are passing stringent regulations to ensure buildings and infrastructure are of high quality and in compliance with environmental and safety regulations. Thus, creating a demand for TIC services in the manufacturing & construction segment.

China holds the largest share in the Asia Pacific testing, inspection & certification market. There are over 300 certified foreign-invested TIC companies operating in the country. Most of these companies are located in the more developed eastern regions, as per China's Certification and Accreditation Administration. Further, the administration also stated that in 2015-2017, the number of TIC companies increased at an average annual rate of 26%.

Some of the key players operating in the Testing, Inspection & Certification market are SGS SA, Bureau Veritas, Intertek Group plc, DNV GL, DEKRA Automobil GmbH ("DEKRA"), Eurofins Group, Applus Services SA, TÜV SÜD AG, TÜV Rheinland AG, and ALS Limited among other.