Asia Pacific Testing, Inspection, and Certification (TIC) Services Market size in 2017 was assessed to be over USD 45 billion and is projected to grow at a CAGR of 9% over the forecast period.
The Asia Pacific TIC market is driven by the growing number of environmental & food safety violations in the region. These violations have led government authorities in the region to implement regulations and standards for ensuring consumer safety and limiting the amount of environmental degradation caused due to the dumping of e-waste in the region. Rising globalization has led to an increase in international trade, which has increased the number of exports from the Asia Pacific region to Europe. These exports from emerging nations of the Asia Pacific region are required to clear stringent assessments to conform to various standards of Europe and North American. This has further triggered TIC industry growth in the region.
The transportation market will register a growth rate of over 7% over the forecast timespan. This growth is credited to the aging infrastructure in emerging countries such as China, South Korea, and Japan. Construction corporations are leveraging on the proficiencies of third-party service providers to test & inspect building materials, machinery, and equipment. Furthermore, rapidly mounting industrialization and urbanization are further augmenting the demand for TIC services in the construction industry.
The South Korea TIC market is anticipated to grow at a CAGR of 8% over the forecast timeframe. This is attributed to the introduction of various government policies mandating the use of TIC services and a rise in the number of counterfeit products. For instance, in 2017, the government introduced mandatory KC certification of electrical & electronic products. This new regulation imposed enhanced penalties on non-compliant products. Foreign players, such as SGS and Intertek, are investing heavily in the establishment of advanced testing laboratories to solidify their position in the market, thereby boosting the TIC market in the region.
The market players from Europe and North America are strategically acquiring various start-ups in Asia Pacific to increase their presence in the Asia Pacific TIC market. For instance, in December 2017, Bureau Veritas acquired McKenzie Group, an Australian construction compliance service provider. The acquisition will enable the company to establish its presence in the fragmented market of the country. The acquisition is in-line with Bureau Veritas’s growth strategy to increase its market share in the Asia Pacific TIC market. The key vendors of the Asia Pacific TIC market include SGS, Applus, Dekra, TUV SUD Bureau Veritas, Intertek, and TUV Rheinland.
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The above information has been provided for the following countries: