Testing, Inspection, And Certification (TIC) Market Size, Share, Growth Analysis, By Service Type(Testing Services, Inspection Services, Certification Services, and Others), By Sourcing Type(In-House, Outsourced), By Application(BFSI (Improved Business Performance and Reduced Cost to Boost Demand for Digital Transformation Solutions, Fraud Detection and Prevention, Asset and Investment Management, Customer Service Automation (Chatbots)), By Region - Industry Forecast 2024-2031

Testing, Inspection, and Certification (TIC) Market Driver

Increasing Need for Interoperability Testing Due to Growing IoT Adoption

• The increasing adoption of smart technologies to improve production and output, and the increasing need to assess IoT devices for data and product quality, is becoming the primary growth in the TIC market. Hence, while IoT and smart connected devices provide more opportunities for achieving higher profit margins for the manufacturers and developers they are also associated with large risks and challenges for the same manufacturers and developers given the high incidence of data breaches. To counter these risks, the manufacturers are focusing on providing better protection to the devices and the data of the users. Thus, the TIC industry is already playing a proactive role in the prevention and mitigation of cybersecurity threats by following common standards and regulations like ANSI/UL 2900, IEC 62443, and NIST CSF. The usage of personal IoT devices which include fitness wearables and now emergence of smart home ecosystem devices has changed the dynamics of customer and enterprise and the communication service providers’ interactions. These devices bring automation and flexibility to different business activities, making it important to perform tests that would confirm the secure connection and the ideal performance of these solutions. 

Strict Rules and Regulations and Rising Demand for Product Standardization 

• Most of the government authorities in many countries have made testing and inspection certification compulsory with the aim of ascertaining that the products being sold on the market are safe and of high quality. Consumer products are expected to have quality and safety tests carried out by third party testing laboratories to legal requirements. The need to reduce the risk for human and environmental safety through adopting more stringent laws and regulations globally is putting pressure on market growth. For Instance, the safety regulations that manufacturers in European countries are required to observe include the Classification, Labeling, and Packaging/Globally Harmonized System (CLS/GHS), Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), the Conformity European Mark (CE and RE Marking), Safety of Toys and Children’s Safetyamong others. These standards are important as they will help ensure that products produced in the market must meet those set quality and safety standards. Concerned government authorities across the globe have put in place testing and inspection certifications for safe and quality products. For instance, in March 2021, the TIC Council of America became a member of the Buy Safe America Coalition, which is an association of consumers, retailers, wholesalers and manufacturers supporting the INFORM Consumers Act. It creates the need for greater responsibility and transparency in the management of online marketplaces to tackle the emerging problem of counterfeit products being sold on the internet. 

Restraints 

Lack of Uniformity in Global TIC Standards

• One of the most important challenges associated with the global Testing, Inspection, and Certification (TIC) industry is the absence of a harmonized system. Regulations and compliance are diverse depending on the country or region that a company operating in TIC services is in or from. These variations cause challenges in the compliance of the various regulations across different territories, engaging in international business, and reaching out to markets with different sets of rules and regulations. It could also prolong the time taken to obtain certifications and approvals on products and services, which may slow down business operations, as well as limit the expansion of products and services in the region. In general, one finds that the lack of uniformity in TIC across the world becomes a significant challenge for industry players who wish to conduct their operations across borders and ensure they are delivering quality products that meet set standards and regulatory frameworks. 

Slower Adoption of Advanced Technologies by Small and Medium-Sized TIC Companies

• The expansion of the global market has led to the introduction of numerous technologies in various fields, including robotic process automation in manufacturing, machine learning in marketing, and AI-powered chatbots. Since technology progresses at a fast pace, the changes influence daily work and business practices in a major way; cognitive computing, blockchain, cybersecurity, and AR/VR are expected to redefine TIC providers’ vision of the market. However, there are several challenges that small TIC firms face in adopting these innovations since there is high capital intensity of research in any innovative products. Furthermore, adopting advanced technology-basedsolutions for testing and certification also poses new entry and scale advantages to the entrants and small players. However, large traditional ITC companies with strong financial strength can incorporate these emerging technologies into their service delivery across multiple domains with ease. For instance, a consumer can use his or her smartphone to scan a physical QR code placed at a retail store to access more information about a particular product, which helps in decision making. However, the inclusion of progressive technologies in the range of service offerings or the certification of products and services in various applications is still challenging for smaller TIC players soon.