Developing Nations in Asia Pacific to Hold Lucrative Opportunities for Players Providing Testing, Inspection, and Certification Services
To participate in international trade, manufacturers have to undergo strict inspections, quality tests, and also obtain universally accepted certifications. The recent times have seen an increase in the import and export between countries. This has fueled the need for testing, inspection, and certification. The rising awareness among global consumers regarding safety standards is driving the global testing, inspection, and certification market. The heightened awareness among consumers will particularly stimulate the adoption of testing, inspection, and certification services in the food and beverages, automotive, and aerospace industries.
According to a report published by Transparency Market Research (TMR), the global market opportunity in testing, inspection, and certification is expected to rise from US$178.65 bn in 2015 to US$285.34 bn by 2024 expanding at a CAGR of 5.7% between 2016 and 2024.
TMR analysts shed light on three important questions that companies operating in the testing, inspection, and certification market have:
Q. What is the biggest challenge faced by players operating in the testing, inspection, and certification market?
Disparities in internationally accepted standards is the biggest problem faced by players in this field. Not only different countries have their own sets of testing, inspection, and certification standards, but also the standards vary for different product types or industries. This discrepancy may make a product excellent in terms of quality in one country and mediocre in another. It is particularly hard for players in the pharmaceutical industry – a drug approved in one country may not necessarily be approved in another.
Q. Which application segment is expected to hold lucrative opportunities in the market?
The growing demand for oil and gas is greatly benefitting the testing, inspection, and certification market. The heightened demand for oil and gas has led to an increase in exploration activities both in the onshore and offshore sites. Since oil and gas are extensively imported and exported, the demand for effective testing, inspection, and certification services will continue to remain high.
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Q. What are the recent developments by key players in the industry?
In July 2016, Bureau Veritas launched a new digital service, SAFEOPS that offers restauranteurs and food retailers to manage their food safety and operations effectively and cost-efficiently. This service allows retailers and restaurant chains to carry out all the daily checks necessary to deliver high quality, safe food to their customers.
Intertek has signed a contract with the Agence des Normes et de la Qualité (ANOR) in Cameroon Central Africa in August 2016, to support its new Conformity Assessment Programme (PECAE). This will help the company to provide certification services to exporters in Cameroon.
Such developments are expected to increase the adoption of testing, inspection, and certification services and continue to drive the market in the coming years.
Q. How are developing nations expected to drive the market?
The developing countries across Asia Pacific and Latin America are expected to hold immense prospects of growth in the testing, inspection, and certification market. This is because developing countries are experiencing a surge in the industrial sector and also witnessing a rise in the number of affluent consumers demanding goods that need to be imported. The thriving food and beverage industry in Asia Pacific and the growing awareness among consumers regarding the use of certified, quality products that are tested for safety are aiding the growth of the market.