North America Testing, Inspection, and Certification (TIC) Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the North America Testing, Inspection, and Certification TIC Market is expected to record a CAGR of 2.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 70.84 billion. By 2032, the valuation is anticipated to reach USD 89.47 billion.

Testing, Inspection, and Certification (TIC) are essential services and processes that evaluate the quality, safety, and adherence to regulations of products, systems, and services. In the North America TIC market, these services are provided by the industry sector operating within the North American region.

Testing encompasses a range of tests and experiments conducted to assess the performance, functionality, and reliability of products or systems. Inspection involves visually examining, measuring, and verifying products, processes, or installations to ensure they meet specific requirements and standards.

Certification involves the official issuance of documentation or certificates to signify that a product, system, or service has met the prescribed standards and regulations. These TIC activities are vital for maintaining quality, safety, and compliance across industries in North America.

North America Testing, Inspection, and Certification TIC Market Outlook (2020 – 2030)- Significant Growth Factors

Increase in Regulatory Compliance: The rising number of regulations in industries like healthcare, automotive, and consumer goods is generating demand for TIC services. Stricter standards pertaining to quality, safety, and environmental factors necessitate comprehensive testing, inspection, and certification processes.

Emphasis on Quality Assurance and Risk Mitigation: Businesses are placing greater importance on quality assurance to uphold customer satisfaction and brand reputation. TIC services play a crucial role in identifying and mitigating potential risks, ensuring that products and services meet industry standards and fulfil customer expectations.

Expansion of Globalization and Trade: The North America TIC market benefits from the expansion of international trade and the globalization of supply chains. As companies expand their operations and engage in cross-border trade, there is a critical need for TIC services to ensure compliance with global standards and regulations.

Technological Advancements: Rapid advancements in technologies such as the Internet of Things (IoT), artificial intelligence (AI), and automation are revolutionizing various industries. TIC services are essential for testing and certifying these emerging technologies, guaranteeing their reliability, functionality, and security.

Growing Awareness of Product Safety: Increasing consumer awareness and the demand for safe and sustainable products are driving the need for TIC services. Consumers are more conscious of product safety, environmental impact, and social responsibility, leading to a greater emphasis on certification and inspection processes.

Overall, these growth opportunities are expected to fuel the expansion of the North America Testing, Inspection, and Certification TIC Market in the coming years.

North America Testing, Inspection, and Certification TIC Market – Mergers and Acquisitions

The North America Testing, Inspection, and Certification TIC Market – Mergers and Acquisitions has seen several mergers and acquisitions in recent years. Some notable examples include:

• SGS SA Acquisition of Cercacor Laboratories: In 2020, SGS SA, acquired Cercacor Laboratories, a technology company specializing in non-invasive medical monitoring devices. This acquisition strengthened SGS’s presence in the healthcare sector and expanded its capabilities in medical device testing and certification.

• Bureau Veritas Acquisition of ICTK Co., Ltd.: In an effort to strengthen its foothold in the Asia-Pacific region and enhance its testing and inspection services, Bureau Veritas, a prominent global provider of TIC services, completed the acquisition of ICTK Co., Ltd., a South Korean inspection and testing company, in 2021. This strategic move solidified Bureau Veritas’ position and expanded its capabilities in the region.

• Intertek Group plc Acquisition of NTA Monitor: In 2020, Intertek Group plc, a prominent TIC company, announced an acquisition of NTA Monitor, a cybersecurity service provider. This acquisition resulted in the strengthening of Intertek’s cybersecurity testing and advisory services, allowing them to offer comprehensive solutions to clients in North America and beyond.

• DEKRA Acquisition of ESI Group: DEKRA, a global player in TIC services, announced the acquisition of ESI Group in 2020. ESI Group specializes in testing and inspection services for the automotive industry. This acquisition will help to expand DEKRA’s expertise in automotive testing and add advanced simulation capabilities to its portfolio.

• Element Materials Technology Acquisition of Exova Group: Element Materials Technology, a prominent company specializing in materials testing and inspection, made a significant move in 2017 by acquiring Exova Group. The acquisition substantially strengthened Element’s presence in the North American market, positioning the company for further growth and market expansion.

These mergers and acquisitions have allowed companies to expand their product offerings, reach new markets, and strengthen their positions in the North America Testing, Inspection, and Certification TIC Market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

North America Testing, Inspection, and Certification TIC Market – Significant Threats

The North America Testing, Inspection, and Certification TIC Market faces several significant threats that could impact its growth and profitability. Some of these threats include:

• Increased Competition from Key Players: The TIC market in North America is highly competitive as many companies are offering similar services. Intense competition can lead to price pressures and potential erosion of profit margins for TIC service providers.
• Frequent Regulatory Changes: Changes in regulations and standards can pose a threat to the TIC market. As regulatory requirements evolve, TIC companies must adapt their processes and services to remain compliant. Failure to keep up with regulatory changes can result in a loss of business and market share.
• Technological Disruptions: Traditional TIC practices face disruption due to rapid technological advancements like automation and digitalization. Companies that fail to embrace these advancements may struggle to remain relevant and deliver services efficiently, making them vulnerable to losing market share to more technologically agile competitors.
• In-house Testing and Certification: Some industries opt to establish their in-house testing and certification capabilities, reducing reliance on external TIC service providers. This trend poses a threat to the market as companies choose internal resources over outsourcing these services, potentially leading to a decline in demand for external TIC services.
• Economic Downturns: During economic downturns and recessions, there is a potential impact on the demand for TIC services. Businesses facing financial uncertainty may reduce non-essential expenses, including testing, inspection, and certification services. This decrease in demand can result in a decline in the market for TIC services.
• Cybersecurity Risks: As the TIC industry becomes more reliant on digital systems and interconnected networks, cybersecurity breaches pose a significant threat. Cyberattacks can compromise the integrity and confidentiality of data, eroding the trust and credibility of TIC service providers.

Overall, these threats pose significant challenges for the North America Testing, Inspection, and Certification TIC Market and require companies to be vigilant in addressing them to ensure sustainable growth and profitability.

Report Scope

Category-Wise Insights

By Service Type:

Testing Services: TIC companies offer testing services that encompass a comprehensive range of tests and experiments. These services aim to evaluate the performance, quality, safety, and compliance of products, systems, or processes. Testing can involve physical testing, chemical analysis, performance testing, reliability testing, and other specialized testing methods.

Inspection Services: TIC providers conduct inspection services, which involve a visual examination, measurement, and verification of products, installations, or processes. The purpose is to ensure that they meet specific standards, regulations, or customer requirements. Inspections are carried out at various stages of the production or operational process to identify non-compliance issues and potential risks.

Certification Services: TIC companies also offer certification services, which involve the issuance of official documentation or certificates. These certifications indicate that a product, system, or process has met specific standards, regulations, or industry best practices. Certification provides assurance to customers, regulators, and stakeholders regarding the quality, safety, and compliance of the certified entity.

By Sourcing Type:

In-house option: Certain companies choose to establish and maintain their own internal capabilities for testing, inspection, and certification (TIC). They allocate resources to develop infrastructure, acquire equipment, and build expertise in order to conduct these activities internally. This approach grants organizations greater control and flexibility in the TIC process, but it necessitates substantial investments and ongoing operational expenses.

Outsourcing option: Many businesses prefer to delegate their TIC services to external service providers. They rely on specialized TIC companies to handle the testing, inspection, and certification on their behalf. By outsourcing these tasks, organizations can capitalize on the specialized knowledge, experience, and resources of dedicated TIC providers, thereby saving time, effort, and costs associated with establishing and maintaining in-house capabilities.

North America Testing, Inspection, and Certification TIC Market  – Regional Analysis

North America Testing, Inspection, and Certification TIC Market can be analyzed regionally based on the geographical distribution and the market presence of key players.

United States: In North America, the largest market for TIC services is found in the United States. This market is characterized by a wide range of industries, including manufacturing, healthcare, automotive, aerospace, and energy, all of which generate strong demand for TIC services. The country’s TIC market experiences growth due to its stringent regulatory requirements and a strong emphasis on maintaining high quality and safety standards.

Canada: Canada is another significant player in the North American market for TIC services. Key industries in the country, such as oil and gas, mining, construction, and agriculture, rely on TIC services to ensure adherence to regulations and industry standards. Factors influencing the Canadian TIC market include government initiatives, technological advancements, and an increasing focus on product safety and quality.

Mexico: Mexico contributes to the North American TIC market with its expanding industrial sectors, which encompass automotive, electronics, manufacturing, and pharmaceuticals. Its proximity to the United States and involvement in international trade agreements make it an attractive market for TIC services. The Mexican TIC market is driven by factors such as regulatory compliance, export requirements, and the need for quality assurance.

Competitive Landscape – North America Testing, Inspection, and Certification TIC Market 

The North America TIC Market  is highly competitive and is dominated by several major players, including:

• Bureau Veritas: With a global presence, Bureau Veritas is a renowned leader in the Testing, Inspection, and Certification TIC industry. Their comprehensive range of services covers various sectors, including oil and gas, consumer products, automotive, and more.
• Intertek Group plc: Intertek is a major participant in the TIC industry, offering testing, inspection, certification, and quality assurance services. They serve diverse industries such as chemicals, construction, energy, and transportation.
• SGS SA: Globally recognized, SGS is a leading TIC company providing a wide array of services, including testing, inspection, certification, and verification. They serve an extensive range of industries, including agriculture, automotive, consumer goods, and healthcare.
• TÜV SÜD: With a strong presence in North America, TÜV SÜD is a multinational TIC company. They specialize in testing, inspection, and certification services across sectors like manufacturing, infrastructure, healthcare, and energy.
• DEKRA: DEKRA is a global player in TIC services, delivering testing, inspection, certification, and auditing solutions. Their operations span diverse industries such as automotive, industrial, construction, and electrical and electronics.
• UL LLC: Underwriters Laboratories (UL) is a widely recognized TIC company, particularly known for its expertise in product safety testing and certification. They offer services to industries including consumer goods, electronics, energy, and sustainability.
• NSF International: NSF International holds a prominent position in the TIC industry, specializing in public health and safety services. They provide testing, certification, auditing, and regulatory compliance services across sectors such as food and beverage, water, healthcare, and consumer products.

Element Materials Technology, Eurofins Scientific, ALS Limited, Lloyd’s Register Group Services Limited, DNV GL, Applus+ Group, TÜV Rheinland, MISTRAS Group Inc. These companies compete on the basis of service quality, pricing, target market, and marketing strategies to maintain their market share and gain a competitive advantage.

The North America Testing, Inspection, and Certification TIC Market  is segmented as follows:

By Service Type         

• Testing
• Inspection
• Certification

By Sourcing Type

• In House
• Outsource

By Application           

• Quality and Safety
• Production Evaluation
• Industrial Inspection
• System Certification
• Others

By Industry Vertical  

• Food Industry
• Pharmaceuticals
• Chemical Industry
• Consumer Goods & Retail
• Agriculture & Food
• Infrastructure
• Energy & Power
• Education
• Government
• Manufacturing
• Healthcare
• Mining
• Oil & Gas And Petroleum
• Public Sector
• Automotive
• Aerospace & Defense
• Supply Chain & Logistics
• Others

On the basis of North America Geography

• U.S
• Canada
• Mexico