Testing Inspection and Certification Market Trends

Growth Drivers

• Growing Trade Between Countries – With the help of TIC, corporate entities can test and certify a product in accordance with requirements from different locations, thus enabling global trade. According to the U.S. Department of State, overall bilateral commerce in goods and services between the United States and India hit a record USD 157 billion in 2021. India's top export destination and commercial partner is the United States.
• Digital Transformation of Customer Services– Customer services has been quicker since digitization, along with this digital transformation is propelling the demand for testing, inspection, and certification. As TIC promotes consumer protection and the dependability of goods and services.  According to around 35% of corporate leaders, digital transformation helps them better satisfy consumer expectations and increase operational efficiency. While nearly 38% of executives plan to increase their investment in technology to gain a competitive edge.
• Increasing Facilities for Testing and Inspection – For instance, in March 2023, UL solution announced to develop the testing laboratory for batteries in Auburn Hills, Michigan. The brand-new facility will offer testing and certification services for the performance and safety of industrial and electric car batteries.
• Growing Concern Regarding Food Safety and Quality – TIC is widely used in the food industry to assess the products and the management system and to obtain a standard certification. Around 51% of people have expressed concerns with plant-based meat and concerns of nearly 49% of people are associated with dairy substitutes food items in the North America region.
• Rising Need for Predictive Maintenance – Predictive maintenance is also known as predictive inspection and testing, that Predictive maintenance for manufacturing industry has become crucial for reducing the cost of maintenance and downtime. The annual average productivity loss for large factories is 323 hours. It costs USD 532,000 per hour, or USD 172 million per facility annually, to lose sales, pay fines, keep workers from working, and restart manufacturing lines.

Challenges

• High cost of testing, inspection, and certification services -The certification standards for every country are different, and the ways of exporting and importing are also different. The market for testing, inspection, and certification is principally constrained by lax import- and export-related regulations. Furthermore, the number of certifications in various sectors is different for various countries which might hinder the market growth.
• Small enterprises face difficulties in receiving accreditation
• Lack of global standards for the TIC services