Testing, Inspection, And Certification Market Size, Share & Trends Analysis Report, By Service Type (Testing, Inspection, Certification), By Sourcing Type, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global testing, inspection, and certification market size was valued at USD 359.35 billion in 2022, growing at a compound annual growth rate (CAGR) of 4.0% from 2023 to 2030. The rising need of enterprises and corporations to engage in safe and efficient testing, inspection, and certification practices promotes market growth for the testing, inspection, and certification (TIC) market. Secure and effective testing and inspection practices ensure companies maintain optimum quality standards, ensure high productivity, and maximum efficiency. Leveraging TIC practices enables companies to customize their supply chain activities according to their needs and desires, thus simplifying business practices. For instance, in January 2022, Temasek, a Singapore-based Investment firm that focuses on restructuring, growth capital, and divestment deals, announced the acquisition of Element Materials Technology, a prominent provider of testing, inspection, and certification (TIC) services. The acquisition aims to mark a significant deal in the TIC industry and a crucial milestone in the expansion of the Group.

The rising growth of the transportation and logistics sector offers promising growth opportunities to the industry. This can be attributed to increasing global trade and the need to deploy intelligent logistics systems at companies. This facilitates TIC solutions to ensure the timely delivery of goods and products across the value chain to minimize operational expenditure.

Furthermore, constant efforts made by regional governments to improve transportation facilities for people by an increasing frequency and improving the safety of public vehicles promotes the deployment of a well-organized TIC environment. For instance, in January 2022, Bureau Veritas, a prominent provider of testing, inspection, and certification services, acquired PreScience Corporation, a construction management service provider in the U.S. for transportation infrastructure projects. This acquisition would further expand Bureau Veritas's growth in the transportation sector for testing and inspection and provide safe, sustainable infrastructure for transportation.

The COVID-19, has disrupted the TIC market significantly. COVID-19 has reduced manufacturing and production activities in several regional geographies due to the implementation of lockdowns by many national governments. However, the healthcare division witnessed significant TIC practices due to the rising need to acquire healthcare services and related products, including medicinal supplies. The consumer goods domain also embraced TIC practices during the pandemic due to people's rising demand to access safe and suitable quality food products. For instance, in January 2022, DNV, a global certification, assurance, and risk management company, announced the purchase of MEDCERT, a notified body based in Germany, to expand its healthcare and medical device assurance capabilities. DNV's potential to provide further medical device notification services will be considerably enhanced as a result of the acquisition.

The rising infrastructure and renewable energy generation projects also offer significant growth opportunities to the global TIC market. The rising urbanization has led to the rise in infrastructure development activities in several developed and developing economies. This is promoting planners and decision-making authorities to deploy TIC-related solutions, which aid in improving the safety and ensuring the quality of infrastructure projects. Additionally, renewable energy projects such as solar energy and wind energy require highly specialized equipment which has to function at total efficiency, thereby promoting the need to deploy effective TIC systems to ensure the functioning of essential machine components. For instance, in October 2022, UL LLC, a global safety certification company, has announced the establishment of a cable fire safety testing laboratory. The facility is located in the industrial city of Abu Dhabi. It offers access to a local fire safety testing laboratory for manufacturers and distributors of optical and electronic cables and busways from all over the Middle East.

Service Insights

The testing segment represented the highest revenue share in 2022 and accounted for over 70% in 2022. This is owing to the high use of testing practices in automotive, energy & utilities, oil & gas and petroleum, and the manufacturing industry. Practical testing of products enables companies to maintain high-quality parameters and meet the needs of customers. This is promoting companies from various industries to increase operational expenditure on the investment of testing equipment, thereby offering an impetus to market growth. For instance, in November 2022, Wallace Instruments, one of the brands of testing equipment for the global rubber industry, announced the release of the WAC11 Mk5 Compression Stress Relaxometer, the next generation of their Compression Stress Relaxometer.

CSR is a "relevant standard" used in industries like automotive, aerospace, energy & utilities, and construction to testify to the durability of an elastomer seal when held in compression throughout time in varied settings. The WAC11 Mk5 enables the operator to quickly evaluate the compression stress relaxation (CSR) properties of O-rings, rubber seals, and gaskets under international standards to assess long-term sealing behavior and predict service life.

The inspection segment is expected to offer significant growth opportunities to the market. This can be attributed to the rise in supply chain activity in countries such as Switzerland, Japan, Germany, and Norway, thereby enabling the deployment of inspection practices. Furthermore, the consumer goods sector also contributes to the segmental growth of the inspection segment. Stringent regulations set by national governments and international bodies regarding the quality of cosmetics, electrical & electronics, sports & athleisure wear, and textiles & footwear have facilitated these companies to deploy an effective inspection ecosystem.

In October 2022, SGS SA, a testing, inspection, and certification firm, announced the acquisition of The IDEA TESTS Group, a prominent provider of microbiological, clinical, and in-vitro testing and regulatory operations to the French personal care and cosmetics industries. This acquisition would strengthen the company's microbiological, clinical, and in-vitro testing capabilities in France, allowing it to expand services to the strategic core markets of cosmetics and hygiene.

Further, constant efforts have been made by regional governments to improve transit safety practices aids in the market growth for the transportation segment. For instance, in January 2022, to minimize CO2 emissions in the automotive industry, governments have put rigorous environmental rules on original equipment manufacturers (OEMs). Thus, the enforcement of extensive government standards and stringent regulations to ensure passenger safety and security while traveling in public transport systems accelerates the demand for testing, inspection, and certification services in the coming years.

Application Insights 

The infrastructure segment dominated the market and accounted for more than 10% share of the global revenue in 2022. Rising infrastructural activity in countries such as China, India, and several European countries is facilitating higher adoption rates of TIC services and products in their regions, offering an impetus to market growth. Further, consumer goods & retail, agriculture & food, chemicals, energy & power, education, government, manufacturing, healthcare, mining, oil & gas and petroleum, public sector, automotive, aerospace & defense, supply chain & logistics, and other applications also impact the growth of the market.

In December 2020, SGS SA, one of the prominent testing, inspection, and certification companies, announced the acquisition of an 80 percent stake in Ryobi Geotechnique International Pte Ltd, a company that specializes in geoengineering solutions for operations like soil investigation, instrumentation, and geotechnics for the infrastructure and construction industries. The acquisition aims to broaden exposure to important TIC megatrends and client demand. It also advances the companies' regional expansion strategy by supplying crucial infrastructure and construction safety, quality, and compliance services.

The consumer goods & retail sector has gained significant revenue share due to increasing inspection activities carried out by companies in the segment. Consumer goods companies have to comply with several quality regulations and standards to offer the best quality products to their customers. This facilitates the need to deploy highly effective and extensive inspection systems, thereby offering growth opportunities to the market. Furthermore, companies from the retail sector also have to ensure that customers access optimum products and customer experience, which further improves the penetration of TIC services and technologies, thereby enabling market growth.

In September 2022, Bureau Veritas, one of the prominent providers of testing, inspection, and certification services, announced the purchase of AET, a France-based laboratory testing firm based that provides project management, product development, and user experience testing services to the consumer goods sector. This acquisition strengthens BV's position in the European retail industry for consumer products.

Sourcing Insights

The in-house type captured the highest revenue share of above 55% in 2022. Deploying in-house testing and inspection methods enables companies to practice practical TIC activities as there is on-site availability and the ability to hire talent and set up custom practices according to the need and desires of the company. Furthermore, deploying in-house TIC teams offers better control and a deeper understanding of business practices, which may benefit the organizational viewpoint.

The outsourced segment is expected to offer significant growth opportunities to the market. The segment captured the highest CAGR over the forecast period. The outsourcing segment promises companies to practice cost-effectiveness and focus on short-term commitments. It also helps companies deploy TIC practices using different engagement models such as hourly model, time and materials model, and dedicated team model, thereby enhancing the system's efficiency.For instance, food and beverage industries are witnessing the installation of advanced technologies and the introduction of innovative solutions that helps to enhance production, improve food quality safety, manage risks, comply with their products and services and meet global standards. Also, the rising globalization and urbanization have led to complex supply chains of TIC services, which further led to the privatization of laboratories, raising the bar for higher efficiency and eventually escalating the demand for outsourced TIC services.

Regional Insights

Asia Pacific dominated the global market in 2022 with a revenue share of above 30%. The high revenue share can be attributed to rising economic development in countries such as China, India, Japan, and South Korea. This has led to an increase in the industrial and manufacturing activity in the region, thereby offering growth opportunities to the TIC market. Furthermore, the rapidly developing AI technology ecosystem in Singapore further facilitates software and programs, subsequently enabling the growth of testing and inspection services for the TIC market.

In February 2022, Applus+, one of the prominent players in testing, inspection, and certification, expanded its presence in Indonesia with ASME Certification (American Society of Mechanical Engineers). Further, the company would take significant effort as an Authorized Inspection Agency to ensure its inspectors have the highest technical expertise in the region. Their staff would assist customers with certification inspections and actively participate in the inspection process.

Europe is expected to witness substantial growth over the forecast period. The presence of a significant automotive industry in Germany and France facilitates the need to deploy efficient testing and inspection ecosystem in their companies. Furthermore, the presence of several fashion brands, consumer goods, and retail corporations in countries such as Italy and the U.K. also facilitates the development and growth of the TIC market in the region.

In July 2022, UL LLC, a global provider of safety certification services, announced the acquisition of Method Park, a German company specializing in software solutions, process engineering, training, and advisory services for the automotive, aerospace, and medical industries. The acquisition strengthens UL LLC ability to assist customers in advancing innovative safety, business transformation, and regulatory and standards compliance.

Key Companies & Market Share Insights

Significant companies in the TIC market have started diversifying and enhancing their service offerings. The need to mitigate the COVID-19 crises has prompted companies to offer products and services related to wastewater testing & analysis. For instance, in February 2022, The Centers for Disease Control and Prevention, the United States' national public health organization, said that it would extend efforts to obtain wastewater samples from towns to look for traces of the coronavirus. Presently, the organization gathers daily samples from more than 400 locations across 37 states and two territories. The agency intends to add 250 more sites to the registry in the following weeks.

Companies have also started opening new development centers in new geographies to increase market penetration. This enables them to form better business relations with customers and clients. Additionally, service providers have started engaging in mergers and acquisitions, which helps in generating new revenue channels. For instance, in February 2022, Applus+, a multinational testing, inspection, and certification firm, announced its acquisition of Lightship Security, Inc., a prominent North American supplier of product certification services. This acquisition is part of Applus+ Laboratories' strategic objective to develop strength in essential technologies and capabilities to assist clients in the global technological shift brought about by energy transition, electrification, and connectivity. Some prominent players in the global testing, inspection, and certification market include:

• ALS Limited

• Applus+

• Bureau Veritas SA

• DEKRA SE

• DNV GL

• Element Materials Technology

• Eurofins Scientific

• Intertek Group plc

• MISTRAS Group, Inc.

• SGS SA

• TÜV NORD GROUP

• TÜV Rheinland

• TÜV SÜD

• UL LLC

Testing, Inspection, And Certification Market Report Scope

Global Testing, Inspection, And Certification Market Segmentation

This report provides forecasts for revenue growth at the global, regional, and country levels and provides analyses of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global testing, inspection, and certification market report based on service type, sourcing type, application, and region. 

• Application (Revenue, USD Million, 2017 - 2030)

  • Consumer Goods & Retail

  • Agriculture & Food

  • Chemicals

  • Infrastructure

  • Energy & Power

  • Education

  • Government

  • Manufacturing

  • Healthcare

  • Mining

  • Oil & Gas And Petroleum

  • Public Sector

  • Automotive

  • Aerospace & Defense

  • Supply Chain & Logistics

  • Others

• Sourcing Type (Revenue, USD Million, 2017 - 2030)

  • In-house

  • Outsourced

• Service Type (Revenue, USD Million, 2017 - 2030)

  • Testing

  • Inspection

  • Certification

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • South America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE