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

Reports Description

As per the current market research conducted by CMI Market Research Team, the US Testing, Inspection, and Certification (TIC) Market is expected to record a CAGR of 2.5% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 48.19 billion. By 2032, the valuation is anticipated to reach USD 60.06 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 US TIC market, these services are provided by the industry sector operating within the US 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.

US 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.

Increasing Focus on Consumer Safety and Quality: The safety and quality of products are of growing concern to consumers in the United States. As a result, there is an increasing desire for independent testing and certification services to ensure that products meet high standards. TIC companies are essential in this process, as they offer assurance to consumers and contribute to building a strong brand reputation.

Growing Importance of Sustainability and Environmental Impact: There is a rising focus on sustainability and the reduction of environmental impact within the United States. The role of TIC services in evaluating the environmental performance and compliance of products, processes, and organizations is crucial. As the demand for certifications related to energy efficiency, waste management, carbon footprint, and sustainable sourcing increases, substantial growth is expected in the TIC market.

Outsourcing TIC Services: Many companies in the US opt to outsource their TIC requirements to specialized third-party service providers. Outsourcing brings advantages such as cost savings, access to specialized expertise, and flexibility. This trend has contributed to the expansion of the TIC market, as companies acknowledge the value of collaborating with experienced TIC providers.

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 US Testing, Inspection, and Certification (TIC) Market in the coming years.

US Testing, Inspection, and Certification (TIC) Market – Mergers and Acquisitions

The US 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: SGS SA, acquired Cercacor Laboratories, a technology company specializing in non-invasive medical monitoring devices in 2020. This acquisition strengthened SGS’s presence in the healthcare sector and expanded its capabilities in medical device testing and certification.
• Bureau Veritas Acquisition of Maxxam Analytics: In 2014, Bureau Veritas, TIC company, announced the acquisition of Maxxam Analytics, a Canadian company with a strong presence in the US market. This acquisition expanded Bureau Veritas’ capabilities in environmental testing, analytical services, and regulatory compliance in North America.
• Intertek Acquisition of Professional Service Industries (PSI): In 2015, Intertek announced the acquisition of Professional Service Industries (PSI), a leading provider of testing, inspection, and consulting services in the construction and infrastructure sectors. This deal strengthened Intertek’s position in the US construction market and enhanced its capabilities in geotechnical engineering, materials testing, and environmental consulting.
• Element Materials Technology Acquisition of Exova Group: In 2017, Element Materials Technology acquired Exova Group, a global provider of testing, calibration, and advisory services. This acquisition significantly expanded Element’s footprint in the US market, particularly in the aerospace, oil and gas, and transportation sectors.

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

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Testing, Inspection, and Certification (TIC) Market – Significant Threats

The US 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 the US is highly fragmented and competitive as many companies are offering similar services at the same price. Intense competition can lead to price pressures and potential erosion of profit margins for TIC service providers.
• Regular Regulatory Changes: The US government keeps on changing various 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. If they fail to keep up with regulatory changes, it 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.
• Demand for In-house Testing and Certification is on Rise: 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.

Overall, these threats pose significant challenges for the US 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.

US Testing, Inspection, and Certification (TIC) Market  – Regional Analysis

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

Northeast Region: It includes states such as New York, Pennsylvania, Massachusetts, and New Jersey, the Northeast region has a diverse array of industries, such as financial services, healthcare, technology, and manufacturing. The TIC market in this region thrives due to the strict regulatory compliance requirements prevalent in sectors like pharmaceuticals, healthcare, and financial services.

Midwest Region: Encompassing states like Illinois, Ohio, Michigan, and Wisconsin, the Midwest region has a strong presence in manufacturing industries, including automotive, aerospace, and machinery. The TIC market in this region is driven by the demand for quality assurance, safety testing, and regulatory compliance in these sectors.

South Region: Comprising states such as Texas, Florida, Georgia, and North Carolina, the Southern states host a diverse range of industries, including oil and gas, construction, agriculture, and healthcare. The TIC market in this region is propelled by factors like compliance with environmental regulations, safety standards in the energy sector, and quality control in agriculture.

West Region: With states like California, Washington, Colorado, and Arizona, the Western region is renowned for its technology-driven industries, such as electronics, software development, and renewable energy. The TIC market in this region is shaped by the need for product certification, testing of innovative technologies, and adherence to environmental regulations.

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

The US Testing, Inspection, and Certification TIC Market  is highly competitive and is dominated by several major players, including:

• National Technical Systems: Provider of product qualification testing, inspection and certification services across North America through a nationwide network of laboratories in distinct product qualification testing categories, such as climatic, dynamics,  structural, fluid flow, lighting and acoustics
• V-TIC Services Inc: Operates as a testing, inspection and certification company with a focus to provide economical solutions faster while increasing the service experience.
• Intertek Group PLC: Intertek is a multinational company providing TIC services in the US and globally. They offer services such as product testing, inspection, certification, and quality assurance across various industries, including chemicals, construction, electronics, and energy. Intertek’s expertise covers areas such as electrical safety, product performance, regulatory compliance, and supply chain sustainability.
• SGS SA: SGS is a leading company in the TIC industry, offering services in areas such as testing, inspection, certification, and verification. They operate across a wide range of sectors, including agriculture, automotive, construction, and consumer goods. SGS provides services related to product quality, environmental impact, social responsibility, and supply chain management.
• TÜV SÜD AG: TÜV SÜD is a global provider of TIC services with a strong presence in the US market. They offer services in various industries, including healthcare, transportation, manufacturing, and energy. TÜV SÜD provides testing and certification services related to product safety, quality management systems, cybersecurity, and sustainability.

National Technical Systems, V-TIC Services Inc, Bureau Veritas, DEKRA Certification Inc., UL LLC, NSF International, DNV GL, Eurofins Scientific, Applus+ Group, ALS Limited, Lloyds Register Quality Assurance (LRQA), TÜV Rheinland, TÜV NORD Group, SOCOTEC Group, Others. 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 US Geography

• Northeast Region
• Southeast Region
• Midwest Region
• West Coast Region
• Southwest Region
• Mountain States