Europe TIC Market Size

Europe TIC Market Analysis

The European Testing, Inspection, and Certification Market was valued at USD 56.22 billion in the previous year, and it is expected to witness a CAGR of 6.1% during the forecast period to reach USD 80.20 billion by the next five years. The continuous improvement in industry practice toward achieving superior quality control and workplace safety continues to drive the demand for improved and efficient testing, inspection, and certification-based requirements.

• Testing, inspection, and certification (TIC) play a significant role, primarily in ensuring that the infrastructure, services, and products meet the standards and regulations of safety and quality. Due to the increased demand for inspection and testing at regular intervals across a few enterprises, such as oil and gas, the TIC market is expected to grow, irrespective of the industrial seasonality. For instance, in March 2023, Rakuten Symphony, in collaboration with its parent Rakuten Mobile, officially established its Open RAN Customer Experience Centre, a test lab in Weybridge, with several retailer partners installed in its on-site, cloud-based radio access network installation.
• Furthermore, the boost in the volume of imports and exports in Europe, especially for products in the food and beverages, consumer electronics, agriculture, and automotive (EV) markets, is anticipated to provide more scope for TIC services in the region. For instance, as per Eurostat, EU imports of goods increased by 41.3 % in 2022 compared with the previous year, while exports rose by 17.9% in 2022.
• The advancement in demand for safety and infrastructure investments in the region is expanding the growth of the studied market. Furthermore, the use of complex technologies, shorter product lifecycles, and the complexity of supply chains in many end-user industries are driving the growth of the studied market. For instance, in June 2022, the EU invested EUR 5.4 billion in sustainable, safe, and efficient transport infrastructure.
• In addition, the European Commission selected 135 transport infrastructure projects for EU grants from 399 project proposals submitted under the CEF, the EU's funding instrument for strategic investment in transport infrastructure. Further, the European Commission is speeding up the financing of 35 military mobility projects to support transporting troops and equipment along the trans-European transport network (TEN-T).
• Rapid technological advancements, which have led to product diversity and, in some cases, shorter life cycles, are expected to increase the usage of TIC services. Emerging technological trends, like connected devices (IoT), mobile payments, smart cities, and connected cars, drive the importance of software testing and inspection on par with hardware testing and inspection. As these technologies become mainstream, the dependency on TIC services is expected to increase.
• Moreover, Certain products require third-party verification for testing, inspection, and certification services, which results in a time-consuming process. The occurrence of time-consuming procedures for providing TIC to specific products impedes product export and import. Most businesses are concerned about this because time-consuming qualification testing causes delays in importing goods, further impeding productivity. As a result of this critical challenge, the TIC market's growth will be slowed.
• Furthermore, the COVID-19 pandemic affected every industry, and the level of resilience varies depending on where demand and production were negatively impacted and where the need was resilient, if not increased. Market participants quickly adopted remote and digital testing to ensure they could continue providing their services. Despite operating constraints and customer challenges, the TIC sector in the region has stayed resilient during the pandemic. Furthermore, the studied market is expected to grow in the future period as several industries, such as automotive, food and agriculture, manufacturing, and oil and gas, are rapidly increasing in the region.