Asia Pacific TIC Service Market Share was valued at around USD 55 billion in 2019 and is expected to grow at a CAGR of over 9.0% from 2020 to 2026.
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The Asia Pacific market is driven by rising development of industries and acceleration in export activities in emerging markets such as South Korea, Taiwan, and others. Enforcement of various trade agreements will increase TIC activities from end-user industries such as consumer electronics, healthcare, and automotive. For instance, in November 2019, Indonesia and South Korea announced free trade deal (CEPA) for removing tariffs on textile, steel, machine parts, and auto-parts. It will open 93% of Indonesia’s market to South Korea. Also, rapidly growing consumer awareness among the middle-class population will increase the importance of certifications, adding an opportunity for Asia Pacific TIC service market. Rising globalization led increase in international trade, increasing the exports from Asia Pacific to Europe and requiring stringent assessments to conform to standards.
The certification segment will grow at 11.5% CAGR in the Asia Pacific market over the forecast period owing to increase in the demand for third-party certifications in consumer electronics OEM industries for improving product credibility, as per the required product standard and regulations. Manufacturers have to comply with various international and national certifications to provide credibility to products across the globe. Also, third-party certification assures more reliable and safer products & equipment. Various certification programs have been introduced to provide consistency in product quality, accelerating market growth in the region. For instance, in January 2019, China introduced The China Compulsory Certification (CQC) and China Quality Certification (CCC) schemes, which enabled manufacturers to obtain the approval before products can be imported and sold for commercial purpose in China.
The agriculture and food segment will grow at 12.5% CAGR in the market during 2020-2026. The growth rate is majorly attributed to stringent government regulations associated with safety and quality control. The agriculture and food industries are established on principles of safety, integrity, and sustainability; therefore, close monitoring of these factors is of high importance. TIC services are required for ensuring quality and help in improving the productivity of food products. Furthermore, the rise in middle class has led significant growth in consumption and demand for food product safety and quality. For instance, in March 2020, Vimta Labs acquired Emtac Laboratories and made it its subsidiary. Vimta Labs supports regulatory authorities in compulsory certification for food and agricultural products, which are exported from India.
Japan will grow at 7.0% CAGR in the market over the forecast period owing to rising government initiatives and standards for electronic systems and technologies. For instance, in August 2020, Class NK (the Japanese classification society), launched the innovations endorsement for certifying innovative technology. The companies in Japan have to pass through approvals for the goods imported, which include Optional S Mark Certification, DENAN & PSE approval and SG Seal of Safety. Also, developments in semiconductor manufacturing industries will create positive growth prospects for the economy of Japan, contributing to the demand for TIC services in the region. For instance, in July 2019, Hamamatsu Photonics constructed a new factory building at Shanghai factory in Japan. The government of the country has also taken various initiatives to attract semiconductor giants across the globe. In May 2020, the Ministry of Economy, Trade and Industry undertook plans to cater to semiconductor manufacturing players, such as TMSC and Intel, for bolstering the chipmakers market in the country.
Key players operating in the Asia Pacific TIC service market are SGS, Applus, Dekra, TUV SUD Bureau Veritas, Intertek, and TUV Rheinland, among others. The players of the region have been acquiring various TIC service companies to expand their regional presence. For instance, in December 2020, SGS acquired 80% stakes of Ryobi Geotechnique International Pte Ltd (RGIPL) in Singapore. The strategic acquisition will accelerate regional growth and TIC megatrends. The market players from North America and Europe are strategically acquiring various start-ups in Asia Pacific to expand their presence in the APAC TIC market.