North America Testing, Inspection, and Certification Market Trends, Size, Segment and Growth by Forecast to 2030

 

The North American testing, inspection, and certification (TIC) market was valued at US$ 81.81 billion in 2022 and is projected to reach US$ 132.81 billion by 2030, growing at a CAGR of 6.2% from 2022 to 2030.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐏𝐃𝐅 𝐁𝐫𝐨𝐜𝐡𝐮𝐫𝐞 - https://www.businessmarketinsights.com/sample/TIPRE00006284

Environmental protection is gaining prominence in North America, driven by proactive measures from both governments and industrial stakeholders. In January 2023, the Inflation Reduction Act of 2022 came into effect in the US, introducing programs, funding, and incentives—such as the Investment Tax Credit (ITC) and Production Tax Credit (PTC)—to accelerate the transition to a clean energy economy. The Act extends the ITC of 30% and PTC of US$ 0.0275/kWh (2023 value) as long as projects meet prevailing requirements for installations over 1 MW AC.

This legislative push has heightened awareness of renewable energy adoption within the industrial sector, thereby increasing demand for TIC services. As the transition to renewable energy requires extensive testing, inspection, and certification, TIC market players are expanding their service offerings and geographic presence.

For instance, in July 2023, TUV SUD America Inc., a leading TIC service provider, opened a new state-of-the-art environmental laboratory in Michigan, US, through a US$ 44 billion investment. Such strategic initiatives are driving the growth of the North American TIC market, reinforcing its crucial role in supporting industrial compliance and sustainability efforts.

Moreover, North American nations have been implementing the most stringent set of environmental provisions included in a free trade agreement (FTA) in July 2020, when the new agreement [dubbed Canada-US-Mexico Agreement (CUSMA), T-MEC, and the US–Mexico–Canada Agreement (USMCA) by the nations] was enforced alongside a companion—Environmental Cooperation Agreement (ECA). Thus, due to such environmental provisions, several types of businesses aim to become more sustainable and eco-friendlier to benefit from eco certifications. There are several certifications, such as Intertek Green Leaf Mark, EcoVadis Sustainability Rating, and 1% for the Planet, that help businesses to be certified sustainable and eco-friendly. Such certifications are beneficial programs that can aid companies in demonstrating their sustainable practices, products, and services to customers, investors, and other relevant stakeholders. Various players across North America are providing circular economy certifications, such as SGS SA and Bureau Veritas. These certifications also contribute to the Sustainable Development Goals (SDG) of the United Nations. Thus, the rise in environmental concerns is promoting the adoption of a circular economy, which drives the North America testing, inspection, and certification market share in North America.

Based on sourcing type, the North America testing, inspection, and certification market is bifurcated into in-house service and outsourced service. The in-house service segment led the North America testing, inspection, and certification market. The in-house service gives an enterprise complete control over the testing, inspection, and certification of the products. By keeping the TIC operations in-house, the enterprise can reduce any misunderstanding that may come from outsourced third-party companies. It provides enhanced work quality by closely working with the development team. It offers the benefit of communication and collaboration among the teams. By conducting in-house TIC operations, the enterprise can manage the TIC timelines, resources, and test cases that align with the enterprise goals and objectives. In-house TIC teams have in-depth knowledge and understanding of the enterprise systems, processes, and products, which helps the TIC teams carry out these operations effectively and efficiently. Such characteristics of the in-house service segment fuel the North America testing, inspection, and certification market growth for the segment.

Rising EV Adoption Provides Lucrative Opportunities for North America Testing, Inspection, And Certification Market

Electric vehicle (EV) sales are increasing due to concerns regarding environmental protection and government policies favoring the adoption of low-emission or zero-emission vehicles, including EVs. For instance, in 2021, the government of Colorado offered a tax credit of US$ 4,000 on the purchase of a light-duty EV. Similarly, the government of Connecticut accepts a reduced biyearly vehicle registration fee of US$ 38 for EVs. As per the International Energy Agency (IEA), EV sales in the US grew from 0.3 billion units in 2019 to 1.0 billion in 2022 and are anticipated to reach 1.6 billion units by the end of 2023. Additionally, the Inflation Reduction Act (IRA) strongly promoted a rise in investments from global electromobility companies to expand manufacturing operations in the US. From August 2022 to March 2023, major EV manufacturers and EV battery makers announced cumulative post-IRA investments of ~US$ 52 billion in EV supply chains in North America. Approximately 50% of these investments were for battery manufacturing and ~20% each for EV manufacturing and battery components, respectively.

North America Testing, Inspection, And Certification Market: Segmental Overview

The North America testing, inspection, and certification market is segmented on the basis of sourcing type, service type, and end-user. Based on sourcing type, the North America testing, inspection, and certification market is bifurcated into in-house service and outsourced service. In terms of service type, the North America testing, inspection, and certification market is segmented into testing, inspection, and certification. In terms of end-user, the North America testing, inspection, and certification market is segmented into consumer goods & retail, food & beverage, healthcare & pharmaceutical, energy & power, manufacturing & construction, and others. By country, the North America testing, inspection, and certification market is segmented into the US, Canada, and Mexico.

North America Testing, Inspection, And Certification Market Analysis: Competitive Landscape and Key Developments

ALS Limited, Applus Services SA, Bureau Veritas SA, DEKRA SE, DNV Group AS, Eurofins Scientific SE, Intertek Group Plc, SGS SA, TUV Rheinland AG, and TUV SUD AG are among the key North America testing, inspection, and certification market players profiled during this market study. In addition to these players, several other important North America testing, inspection, and certification market players were also studied and analyzed during this market research study to get a holistic view of both the North America testing, inspection, and certification market and it’s ecosystem. The leading North America testing, inspection, and certification market players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to participate in new business opportunities. A few recent key North America testing, inspection, and certification market developments are listed below:

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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights