Market Trends of Testing, Inspection, And Certification Industry
Energy and Chemicals to be the Largest End-user Vertical
- Given the potential hazards, safety stands as a top priority in the energy and chemicals sector. TIC services help verify compliance with safety regulations and industry standards. For instance, in the chemical industry, TIC ensures the integrity of pipelines, storage tanks, and drilling equipment, minimizing the risk of accidents. TIC helps evaluate the safety of manufacturing processes and handling hazardous substances.
- TIC services are essential in maintaining product quality across the energy and chemicals segment. Through rigorous testing, inspection, and certification, TIC ensures that products meet the required standards. In the renewable energy sector, TIC verifies the performance and durability of solar panels, wind turbines, and energy storage systems. For chemical products, TIC helps assess purity, composition, and adherence to quality specifications.
- In the energy and chemicals sector, sustainability and environmental responsibility are now pivotal. TIC services aid in assessing and minimizing the environmental impact of operations. Environmental testing helps identify pollutants and monitor air, water, and soil quality. TIC also supports compliance with environmental regulations, such as emissions control and waste management.
- TIC services are crucial for maintaining product integrity and traceability across supply chains. This includes verifying the origin and quality of raw materials, conducting inspections at various stages of production, and certifying the final products for export or distribution.
- Safety inspections are crucial in the energy and power sector to prevent accidents, protect workers, and maintain a safe working environment. These inspections involve assessing equipment, machinery, and infrastructure for potential hazards. Fire safety inspections, electrical safety audits, and gas leak detection are some of the safety inspections carried out to identify risks and implement corrective measures.
- In November 2023, ScottishPower Renewables awarded DNV a three-year contract. DNV will provide integrated inspection services for the East Anglia Three project. The scope includes site inspections, vendor evaluations, and quality management services, spanning both project and vendor sites worldwide until 2026. As per the Managing Director for the East Anglia Hub, East Anglia Three is set to be the world’s second-largest wind farm when it comes into operation in 2026. It is anticipated to play a key role in enhancing the United Kingdom’s energy security and providing clean, renewable energy that would facilitate it to reach net zero.
- As per the Global Energy Monitor report, in June 2024, China led the world with 129 operational wind farms, predominantly offshore. Following China, the countries with significant offshore wind farm presence include the United Kingdom, Germany, and Vietnam. The offshore setting benefits from stronger wind speeds, translating to increased electricity generation compared to onshore installations. SSRs are crucial in wind turbine control systems, facilitating blade pitch and yaw orientation adjustments. Their precise and reliable operation is vital for maximizing turbine performance and capturing wind energy efficiently.
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Asia Pacific to Register Major Growth
- China is significantly investing in the market's growth. The country has become an attractive spot through developing indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization, which creates various opportunities for TIC in the country.
- China's "Made in China 2025" initiative has identified 5G as an emerging industry. It offers opportunities for Chinese enterprises to become more competitive and innovative in the international market and prevent low-quality and counterfeit goods from entering the market, which can be achieved through domain-specific certifications.
- The Chinese government has implemented beneficial policies to allow foreign entities to establish a presence in the country to promote gradual liberalization. Local companies dominate the majority of the TIC market in various Chinese provinces. The government has promoted foreign investments in the TIC sector by removing obstacles for international TIC providers to enter and function in the mainland market.
- For instance, in April 2024, MPR China Certification GmbH and its subsidiaries MPR International GmbH and China Certification Corporation revealed their strategic alliance with CERTANIA. This rapidly expanding group specializes in testing, inspection, and certification (TIC) services. This partnership signifies a significant achievement for MPR, enabling the company to expedite its growth initiatives.
- In pursuit of carbon neutrality by 2050, the Japanese government has unveiled a series of energy policies. These policies target significant reductions in greenhouse gas emissions across key sectors, including electric power, industry, and transportation. Specifically, the government has set ambitious 2030 targets for the electric power sector. These targets involve ramping up investments in renewable energy, bolstering nuclear generation, and scaling back reliance on fossil fuels for electricity production.
- Various developments in the power and energy sector are expected to create opportunities for the market studied. For instance, in April 2024, GE Vernova's Gas Power business announced it had secured an order from Korea Western Power Co. Ltd (KOWEPO), a subsidiary of Korea Electric Power Corporation (KEPCO), to provide a GE Vernova7HA.02 gas turbine and a H65 generator for KOWEPO's power station in Gongju-si, Chungcheongnam-do Republic of Korea.
- The growing urbanization, changing demographics, and steady growth in retail have propelled the growth of the food processing industry in India. This increased demand has led to a surge in production from food and beverage companies. These companies are capitalizing on the growing middle-class population by introducing new products and expanding their existing product lines, thus supporting the market growth.
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