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North America TIC Market Analysis

The North American Testing, Inspection, and Certification Market is expected to register a CAGR of 3.8% over the forecast period. The rise in demand for safety and infrastructure investments in the region is boosting the growth of the studied market. Furthermore, the usage of complex technologies, shorter product lifecycles, and the complexity of supply chains in many end-user industries are driving the growth of the studied market.

• The advent of new technologies, stringent environmental norms, and increasing health safety measures changed the entire industry's viewpoint on compliance with standards and regulations. Testing, inspection, and certification (TIC) play a significant role in ensuring that the infrastructure, services, and products meet the standards and regulations on safety and quality. Due to the increasing demand for inspection and testing processes at regular intervals across a few industries, such as oil and gas, the market is expected to witness growth, irrespective of the industrial seasonality.
• In addition to imports and exports, rapid technological advancements, which led to product diversity, and in some cases, shorter life cycles, are expected to increase the usage of TIC services. Emerging technological trends, like connected devices (IoT), mobile payments, smart cities, and connected cars, are driving the importance of software testing and inspection, on par with hardware testing and inspection. As these technologies become mainstream, the dependency on TIC services is expected to increase.
• The increasing food safety audits drive the market in countries such as the United States. The Food and Drug Administration Authority (FDA) of the United States introduced the Food Safety Modernization Act to transform the country's food safety system, primarily focusing on preventing foodborne illnesses. Under this act, the government set different standards for various food products. This resulted in rapid growth in the country's tests, inspections, and certification activities.
• The new entrants in the market witness high barriers to entry at the TIC market, which requires more significant investments to grow and operate in the studied region. Some investments include expansion of presence, investments for modern laboratories to match the growing competition and automation trends across industries, and, lastly, investments for stronger industry networks.
• Further, owing to the COVID-19 pandemic, the market witnessed an overall decline in demand. Though revenues decreased in the first quarter of 2020 and last year, a few prominent players saw significantly high demand for testing, inspection, and certification services from select end-user industries. The pandemic has encouraged a shift from traditional on-site testing to remote testing, inspection, and certification. The transition is supported by various organizations, including TIC Council Americas, the Americas' branch of the TIC Council. Further, post-pandemic, vendors like TUV Rheinland introduced remote inspection and virtual assessment to reduce in-person inspection and ensure the health and safety of inspectors.

North America TIC Industry Segmentation

Testing represents the industrial activities that ensure that manufactured products, individual components, and multicomponent systems are adequate for their intended purposes. Inspection and testing are the operational parts of quality control, which is the most crucial factor in any manufacturing company's survival. Quality control directly supports the other elements of cost, productivity, on-time delivery, and market share.

The North America Testing, Inspection, and Certification (TIC) Market is segmented by Type (Outsourced, In-house), End-User Vertical (Consumer Goods and Retail, Environmental (Effluent, Water, Soil, Air), Food and Agriculture, Manufacturing and Industrial Goods, Oil and Gas, Construction and Engineering), and Country (United States, Canada).

For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).