Discerning consumers worldwide are driving the demand for testing, inspection, and certification services worldwide. But at the same time, manufacturers have to grapple with a web of domestic and international standards to ensure that their products adhere to both. This has turned the focus on professional service agencies that can provide testing, inspection, and certification programs and packages. The growing cross border trade has heightened the demand for TIC even further as companies venturing into new markets need to be in compliance with the required mandates if they are to successfully do business.
With new regulatory bodies being established in several emerging industries and previously unorganized sectors now being regulated in emerging economies, a new opportunity is developing in the testing, inspection, and certification market in regions such as the Middle East and Africa, Asia Pacific, and Latin America. As a result, of these factors, the global testing, inspection, and certification market is expected to expand at a strong 5.7%. Spending on TIC services is expected to reach US$285.34 bn in 2024, growing considerably from US$178.65 bn as of 2015, says a new report that has been published on Market Research Reports Search Engine (MRRSE). The report has been published by Transparency Market Research.
Why the Oil and Gas Industry Should not be Ignored by Companies in the Testing, Inspection, and Certification Market
If there is one force that will steer the growth of the global testing, inspection, and certification market, it is the oil and gas industry. According to the aforementioned study, the oil and gas industry is the largest end-user of testing, inspection, and certification services. In 2015 alone, the oil and gas industry contributed to 35% of all revenues reported by the global testing, inspection, and certification services market. It is expected that the demanding and exacting processes/equipment required in the oil and gas industry will help this industry remain a leading end user. This will be the result of TIC services being a necessity at almost every stage of exploration and production lifecycle.
As the number of onshore and offshore exploration projects continues to grow in the oil and gas industry, it is expected that the demand for TIC services will only keep increasing progressively. The report predicts that revenue generated by the oil and gas industry in the testing, inspection, and certification industry will expand at a 5.6% CAGR from 2016–2024.
Local Players Still Have a Stronghold on the Global Testing, Inspection, and Certification Market
Nearly 71% of the revenues reported by the global testing, inspection, and certification market came from small and mid-sized companies, as of 2015. The four leading companies in this market made up less than 30% of the global revenues. This points toward a highly fragmented landscape where several local players are in operation. The sheer degree of fragmentation in the testing, inspection, and certification market has led to cutthroat competition being observed in this space.
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From the standpoint of geography, it was Europe that led the global testing, inspection, and certification market in 2015. Several leading global and regional vendors have a strong presence in European countries, helping this region stake claim to a sizable revenue share in the overall market. In 2015, nearly 30% of the global revenues of this market came from Europe.