DUBLIN--(BUSINESS WIRE)--The "North America Testing, Inspection and Certification (TIC) Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The North America testing, inspection and certification (TIC) market is expected to grow at a CAGR of 12.8% over the forecast period 2020-2025
Growing demand for regulation of processes, materials, products, and systems in developed countries to ensure its safety is driving the market in North American countries. Moreover, ever-increasing trade flows, integrating supply chains, and increased corporate outsourcing of quality assurance work to the third parties are supporting the expansion of the market.
The advent of digital technologies and telecommunication has encouraged the aircraft engineers and technicians to develop advanced aerospace devices with better quality and safety features and ensures standards of excellence. It has increased the investment in testing capabilities to instill confidence in newly developed civilian aviation or defense contractor customers.
Key Market Trends
Healthcare Sector Will Experience Significant Growth and Drive the Market
- The adoption of a sedentary lifestyle has been the primary factor contributing to the high prevalence of chronic diseases around the world have fueled the demand for curable drugs and healthcare monitoring systems that have become an integral part of the global medical care and services sector which in turn has increased the concern regarding the quality and safety of the devices for both patients and doctors.
- According to a report, chronic disease is among the most prevalent and costly health conditions in the United States, and nearly half (approximately 45%, or 133 million) of all Americans suffer from at least one chronic disease, and the number is growing. The most common chronic diseases are HIV, cancer, diabetes, hypertension, stroke, heart disease, respiratory diseases, arthritis, and obesity. And as per the Centers for Disease Control, the United States, chronic disease, accounts for nearly 75% of aggregate healthcare spending, or an estimated USD 5,300 per person annually.
- Medical equipment vendors manufacture devices that meet the quality and safety standards to ensure that the product is safe for usage. Some firms are outsourcing the medical device testing, inspection, and certification services as stringent regulations increase the cost of conducting an in-house test.
- For instance, in March 2020, Royal Philips has received an Underwriters Laboratories (UL) product cybersecurity testing certification. The UL IEC 62304 certification evaluates the robustness and maturity of a medical device manufacturer's cybersecurity controls and capabilities in product development. It is a strong validation of Philips's medical offerings and is an opportunity to advance healthcare and personal health product security in the future.
Food and Beverage Sector is Expected to Experience Significant Growth and Drive the Market
- The increasing number of safety breaches in the food industry of Canada and the United States have led to more complex and stringent regulations by the standards of federal and state agencies in the food processing and packaging sector.
- For instance, Peanut Corporation of America knowingly sold the peanut butter contaminated with Salmonella between 2008-2009, was the biggest food safety breach in North America. This reckless and dangerous decision of the quality assurance department had resulted in illness and even some deaths and closure of the company. It has killed nine people and 691 people affected across 46 states in the United States.
- Moreover, the growing demand for fast-food restaurants and processed food in the region has established various processed food companies. In order to survive the competition, most of the brands are harnessing the power of testing, inspection, and certification to promote and differentiate their products from others. Food processing brands are outsourcing the testing and certification to third parties to increase the authenticity and is expected to expand the market in the future.
- For instance, in July 2019, Tyson Foods, world second largest processor and marketer of chicken, beef, and pork, received a certification from the Professional Animal Auditor Certification Organization for its FarmCheck program for broiler chickens. This certification reflects the company's diligently effort to promote the humane treatment of livestock throughout its supply chain and differentiate its offerings from others.
- Further, increasing health-conscious consumers and awareness about healthy and safe food products is expected to drive the food testing and certification market in the future.
- The outbreak of the COVID-19 pandemic has fueled the market and mostly in food packaging and healthcare sector and is playing a crucial role in providing assurance regarding the safety and quality of the services and products.
Competitive Landscape
The North America testing, inspection and certification (TIC) market is concentrated and is dominated by a few major players like SGS Group, Intertek, Bureau Veritas, TUV SUD, and ALS Limited.
These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
Market Dynamics
Market Drivers
- Highly developed regulatory framework for TIC (especially in verticals such as Environmental, etc.)
- Growing demand for outsourced services
- The market for TIC services expected to retain steady growth in core verticals such as consumer goods and oil & gas
- Incremental growth in adoption of testing & certification policies in Canada
Market Challenges
- Entry barriers for new players and standardization concerns especially in the case of inter-border transactions)
PESTEL Analysis
Market Opportunities
Industry Ecosystem Analysis
Impact of COVID-19 on the TIC Industry in North America
GAP Analysis - Market Opportunity for new entrants
Companies Mentioned
- SGS Group
- Intertek Group Plc
- Bureau Veritas
- TUV SUD
- Applus Services, SA
- UL LLC
- DNV GL
- Mistras Group
- Avomeen LLC
- Envigo Corporation
- AB Sciex LLC
- DEKRA SE
- ALS Limited
For more information about this report visit https://www.researchandmarkets.com/r/i19qes
