Market Trends of Certificate Testing Industry
This section covers the major market trends shaping the Certificate Testing Market according to our research experts:
Products and Retail is Expected to Hold the Largest Market Share during the Forecast Period
The growing adoption of smart and wireless devices in the sector is also attracting many vendors to offer a range of product certification programs, for smart and wireless devices to help customers meet industry standards. These programs address a variety of technologies, including Bluetooth SIG, NFC Forum, LoRa Alliance, Sigfox, and GCF and PTCRB for cellular. These certifications are required if products leverage cellular and wireless technologies.
Products and Retail are expected to remain the fastest-growing segment, mainly due to the global expansion of online retail platforms. Personal care and beauty products, softlines and accessories, electrical and electronics, hard goods, toys, and juvenile products are significant fields, which TIC vendors are targeting.
The expanding scope of online payment services with standards, like EMV Co/ Visa, are also driving the need for TIC services. Mobile and wearables, point of sales terminals, cards and payment vendors, banks, and ICTK Payment & Finetech offer scopes of these services. According to the industry expert, about 25% of all product returns in the online retail market are mainly due to poor or unexpected quality. These factors are attracting market vendors to cater to innovative services for these cases.
APAC is Expected to Account for the Largest Market Share During the Forecast Period
- The growth of the certification market in APAC is driven by a combination of regulatory and economic determinants. Furthermore, investments in new technologies are sizeable and are likely to continue growing on the back of the rising global competition. Moreover, the governments of several countries in APAC are boosting investments by private actors in the technology area, which would lead to the enhanced application of independent certification services.
- Emerging markets, such as China, have become attractive, through the development of indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization. Additionally, the rise of the middle class has led to an increase in private consumption and demand for both safety and product quality. This, in turn, offers growth opportunities in areas, such as food and consumer goods testing. One such example is the acquisition of TUV Rheinland’s food analysis laboratories in China.
- Similar to many Asia-Pacific countries, South Korea has very limited domestic oil and gas resources. Every year, more than 98% of the fossil needs in the country is met by imported fuels. Sustainability in architecture is one of the critical factors among Korean design and engineering firms. Rising awareness about global warming and the limitation of resources pushed the government to adopt building codes, demanding high energy-efficient buildings for new constructions as well as existing infrastructure, thus fueling the growth of the Certificate Testing market.
