The Europe Testing, Inspection & Certification market is projected to grow at a CAGR of around 4.5% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. Many sectors, such as consumer products, electronics, etc., rely highly on these testing services for validating product quality & ensuring that they comply with regulatory standards, thereby avoiding recalls. Several high-profile products recalls in Europe, particularly in industries like food, automotive, and electronics, have surged due to a range of issues, including quality defects, safety concerns, and regulatory non-compliance. This has increased the focus on product safety & quality in Europe, subsequently enhancing the requirement for these services.
Moreover, new technological innovations are surging in sectors like automotive, electronics, etc., due to which unforeseen issues are coming up in these sectors. These surging innovations in these sectors would augment the need for testing services during the forecast period. Furthermore, the demand for TIC services has been driven significantly by various sectors, such as oil & natural gas, chemical, power, etc. The oil & gas industry has a great emphasis on the safety & reliability of equipment and infrastructure, which supports market growth. Additionally, new projects, including Wisting Central Oil Discovery Project & others, are coming up in the region, which would, fortunately, push the demand scale for the services.
Alongside, the region is one of the major producers of chemicals & has the presence of companies like BASF, Bayer AG, Royal Dutch Shell, etc. The revenue generated by the chemical industry accounted for almost USD900 billion in 2021, with Germany, France, Italy, and the Netherlands being the major chemical production hubs. Moreover, there are a large number of industrial assets, such as pressure vessels, piping systems, and electrical & instrumental systems in these chemical plants, which require these services to comply with regulatory norms. Hence, this would continue to support the growth of the market in the coming years, further states the research report “Europe Testing, Inspection, and Certification Market Analysis, 2023.”
Outsourced Sourcing Type to Witness Considerable Growth
Based on the sourcing type segment, the market is further bifurcated into In-house Sourcing & Outsourced Sourcing. The need for quality compliance by large corporations & government authorities, especially in industries such as consumer goods & automotive, has significantly propelled the demand for outsourced services. Enterprises across these sectors benefit from outsourcing, as it enables them to concentrate on their primary competencies while leaving compliance & quality assurance accountabilities to qualified third-party providers. In addition, outsourcing these services ensures neutrality & objectivity, which is a bit difficult to achieve with in-house services. The demand for these services would surge due to the expansion of global trade & the strict quality assurance regulations imposed by the European Commission.
Germany to Showcase Substantial Progress
The demand for TIC services was considerably high in Germany, in comparison to other European countries, due to its robust automotive sector, which requires these services to comply with strict regulations & sustain high-quality standards. Additionally, the surging innovation in the automotive sector & the use of advanced technology is necessary to ensure that all components & materials meet the required standards. Moreover, the automotive sector is now gradually progressing with more emphasis on electric vehicles (EVs), which is further presumed to enhance the requirement for these services in the ensuing years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including SGS Group, Bureau Veritas, Intertek, Dekra, Eurofins Scientific, TUV SUD, DNV GL, TUV Rheinland, Applus+, TUV Nord, etc., are looking forward to strengthening their market position.
Key Questions Answered in the Research Report