Market Trends of North America Testing, Inspection and Certification (TIC) Industry
This section covers the major market trends shaping the North America Testing, Inspection & Certification Market according to our research experts:
Automotive Industry Holds Significant Market Share
- The recovery in automotive manufacturing and trends like electric vehicles and autonomous cars are some of the significant factors driving the demand for TIC in the North American automotive industry during the coming years. Furthermore, growth in safety technologies such as advanced driver-assistance systems (ADAS) and vehicles that use sensors, cameras, and laser scanners, among others, would further create massive growth opportunities for the studied market vendors in the coming years.
- Connected cars in the automotive sector are expected to drive the need for TIC services as software, and hardware testing becomes more crucial. In addition, various companies have begun remote services for inspection and testing in the automotive sectors.
- In march this year, Volvo Car UAS launched a program for its US dealers to install automated drive-through vehicle inspection stations to detect structural, mechanical, and tire defects in seconds. Israeli tech company Uveye manufactures the inspection system, and the system is built with artificial intelligence and machine learning to produce valuable reports and mitigate human errors. Therefore, automation is expected to slightly hamper the growth of existing manual TIC services for the market studied. Similarly, according to Uveye tech, the company signed a deal with 15,000 car dealers across the United States in the current year.
- However, the increased adoption of Electric Vehicles across North America is expected to drive the need for TIC services. According to JPMorgan Chase, the battery electric vehicles sold to customers in North America are estimated at some 1.2 million by the next three years.
- As the performance of semiconductors and the adoption of diverse sensors in vehicles continue to increase, the importance of safety standards for software and their level of sophistication has also risen. In february this year, StradVision, an AI-based vision processing technology company for Autonomous Vehicles and ADAS, obtained the ISO 26262 certification for automotive functional safety from TÜV Rheinland, a globally renowned third-party testing, inspection, and certification company.
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United States is Expected to Hold Major Market Share
- Due to the increasing demand for inspection and testing processes at regular intervals across a few industries, such as oil and gas, the North America TIC market is expected to witness growth, irrespective of the regional industrial seasonality.
- There is also an increase in the volume of international imports and exports, especially for the products such as food and medical products. The markets of food and beverage, agriculture, consumer electronics, and automotive (electrical vehicles) are expected to provide more scope for TIC services. According to United States Trade Representative, Currently, the United States has 14 free trade agreements with 20 countries.
- Moreover, environment-focused initiatives are also driving the adoption of newer testing standards, primarily with the aid of new technologies. For instance, the Detox campaigns, such as Greenpeace's ZDHC (Zero Discharge of Hazardous Chemicals) campaign across the U.S. region, primarily aim to reduce the usage of harmful chemical substances in the textile industry (the second largest polluter of freshwater worldwide).
- In the United States, due to the growing competition from newer markets and the increased demand for quality from consumers, quality assurance and compliance solutions have become vital for consumers. Most consumer-based goods and retail services make use of testing and certification.
- In the United States, the Consumer Product Safety Improvement Act specifies that the third-party testing and certification of certain products is mandatory before being placed on the market, positively impacting the market's growth. In December this year, Kiwa, a global Testing, Inspection, and Certification (TIC) company, announced the merger with St. Louis (USA) based ASI LLC to the Kiwa Group. The merger would significantly strengthen Kiwa's presence in the United States by providing Food, Feed & Farm certifications.
- The increasing adoption of consumer electronics, smart and wireless devices in the sector are also attracting many vendors to offer a range of product certification programs for consumer electronics, smart and wireless devices to help customers meet the industry standards. These programs address various technologies, including Bluetooth SIG, NFC Forum, LoRa Alliance, GCF, and PTCRB for cellular. These certifications are required if products leverage cellular and wireless technologies. According to U.S. Census Bureau and Consumer Technology Association, the forecast released this year anticipated a USD 1.7 billion increase in the sales value of smartphones sold in the United States, for a total of USD 74.7 billion in sales.
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