Market Trends of Americas Testing, Inspection And Certification Industry
Consumer Products and Retail Segment Holds Major Market Share
- Consumer goods and retail are among the major end-user industries of TIC services in the Americas region, owing to the growing demand for quality assurance and compliance. The global consumer goods and retail industry is witnessing innovations in disruptive technologies that are drastically reducing production costs and increasing speed to market, further creating the need for testing and inspection services.
- The COVID-19 pandemic has impacted some segments of the industry positively, while others have been negatively impacted. However, TIC services are expected to witness growth in all segments, owing to growing quality and safety concerns among consumers.
- In recent years, the consumer electronics industry in the Latin American region has been positively impacted by growing consumer confidence, consistently low unemployment rates, and increased disposable income, especially among lower-income consumer groups. Among the major countries, Mexico is stepping up as a key player, transforming trade and supply chains through nearshoring in electronic manufacturing.
- Moreover, the North American consumer electronics industry is largely mature, and being a technology-developed country, it has huge penetration in the majority of households into the country. With advancing technology, the trend of smart offices and smart homes is augmenting the demand for consumer electronics products such as smart TVs, smart refrigerators, smart air conditioners, and more.
- According to the Consumer Technology Association, the US consumer electronics industry retail revenue is expected to reach USD 485 billion by 2023. Moreover, the industry is also benefiting from the growing investments by major consumer electronics manufacturers in the region.
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United States Holds Largest Market Share
- The United States holds the largest market share in the Americas TIC market. For quality assurance, the oil and gas industry relies heavily on inspection, ensuring all equipment runs safely and reliably. With regulations such as API and ASME, power stations, oil platforms, oil and gas, and refinery pipelines must be constantly checked for corrosion, erosion, or imperfections that could lead to dangerous conditions, critical failures, or catastrophic incidents.
- According to API, the total US supply of natural gas liquids, crude oil, and other liquids in November 2023 was 20.98 billion b/d, up by 1.17 billion b/d compared to November 2022 (November 2022: 19.81 billion b/d). The United States TIC market is projected to increase, regardless of the seasonal nature of the industry in the country, due to increased demand for inspection and testing procedures at regular intervals within several industries, such as oil and gas.
- Furthermore, according to the US Energy Information Administration (EIA), the total natural gas consumption at the end of November 2023 was 2825009 MMcf, a steady increase from September 2023. Of this, 743623 MMcf was consumed for industrial purposes and 493515 MMcf for residential purposes.
- The demand for TIC services from the American mining industry is growing well; hence, it is expected to recover in the coming years. Companies are making strategic initiatives to expand into the sector. For instance, in November 2023, Smithers, with the recent acquisition of MIL International, announced the formation of the Commodity Testing and Inspection Division, which will focus on quality inspections, Loading and Discharging Supervision on Solid Fuels, Ferro Alloys, Ferrous Steel Scrap, Iron Ores, Metals, Direct Reduced Iron (DRI/HBI), Minerals, Concentrates and Fertilizers. The company focuses on growing its services in this industry by delivering accurate data on time with a high touch.
- The United States has one of the largest automotive markets in the world, producing 10.60 million vehicles in 2022, of which 1.7 million were passenger cars and approximately 8.3 million were commercial vehicles. The growing emphasis on decreasing vehicular emissions has changed the automotive industry's focus toward electric vehicles, which are driving the market. The electric car market is the third-largest in the United States, increasing by 55% in 2022. As the performance of semiconductors and the adoption of diverse sensors in vehicles continues to grow, the importance of safety standards is expected to drive the need for TIC services as software and hardware testing becomes more crucial in the sector.
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