Certification Management Market Expected to Grow



The global marketplace for certification management, already a $150 billion industry, is expected to grow at a compound annual growth rate of 6% between 2018 and 2024. This growth is driven by several key market trends, including increased globalization and the trend toward outsourcing compliance needs to specialized, third-party compliance experts.

Components of the Certification Management Market

Global Market Insights breaks down the certification management market into three distinct parts: testing, inspection, and certification. The testing market, which accounted for over 65% of revenue share in 2017, will continue its growth, thanks to increased public and government scrutiny of product quality and specifications.

The certification services segment of the market is also expected to grow due to government regulations on energy-efficient products and the need for electronics manufacturers to comply with a range of international standards. These trends, among others, are expected to grow the market segment by a compound annual growth rate of 9% between 2018 and 2024.

Drivers of Growth in the Certification Management Market

There are two key trends underlying the expected growth in the certification management market: globalization and the rising demand for third-party compliance expertise.

Businesses are operating on a global scale like never before. New trade agreements have opened up trading paths between previously disconnected regions, and manufacturers are introducing their products in new markets all over the world. Important emerging markets like Brazil, Russia, India, China, and South Africa have contributed to this trend over the last several years.

As the world becomes more connected, new markets open up. And with these new markets comes the need for third-party compliance professionals to help with testing, inspecting, and certifying products for sale in this new region.

Outsourcing vs. In-House Compliance

Currently 60% of testing, inspection, and certification services are conducted in-house, with the other 40% being outsourced to third-party compliance agencies.

Government organizations around the world are under pressure to cut costs, reducing their resources for market surveillance and certification oversight. This trend, plus the privatization of state-owned laboratories, has given rise to an increased need for outsourced certification management services. Global Market Insights predicts the outsourcing market for certification management services will grow at a compound annual growth rate of over 8% between 2018 and 2024.

Fastest-Growing Industries for Product Certification Management

Transportation and construction are expected to make up a major share of the certification management market going forward.

Transportation, which accounts for over 25% of global market share in product certification management, owes its continued growth to advancements in vehicle components and a growing body of governmental regulations on vehicle parts and performance. The aerospace sector is also poised for significant growth, leading to higher demand for third-party certification services.

Construction, which accounts for over 15% of the global market for certification management services, is also expected to grow in the next several years. As a result of aging infrastructure in developed countries and the continued industrialization and urbanization of developing countries, utilization of third-party testing, inspection, and certification services will continue to increase.

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