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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