Market Size Projection (2024–2030)

The Testing, Inspection & Certification (TIC) services for the Telecommunication Sector Market witnessed a valuation of USD 248.06 billion and is poised to reach USD 333.07 billion by the conclusion of 2030. Forecasts spanning 2024 to 2030 anticipate a Compound Annual Growth Rate (CAGR) of 4.3%.

Overview of the Industry

Among the swiftly expanding sectors of today, the wireless and telecommunications sector stands prominent. Revolutionary wireless technologies have facilitated the introduction of previously inaccessible products, revolutionizing erstwhile manual and disjointed business processes across various industries. The evolution of wireless technology is most comprehensible when viewed in the context of the evolution of communication methods over time. The escalating need for wireless networks and connectivity across all facets of life has paralleled advancements in communication. Manufacturers of wireless and telecom products now face heightened demands in meeting the surge for this cutting-edge technology. Within the telecommunication industry, Testing, Inspection, and Certification (TIC) services encompass conformity assessment organizations offering a spectrum of services including auditing, inspection, testing, verification, quality assurance, and certification, both internally and externally. Through these services, manufacturers can enhance efficiency, adhere to international standards, and elevate the quality of products and services. The imperative of ensuring compliance with national and international safety and quality regulations has intensified alongside the burgeoning demand for high-caliber products and services. The digital revolution in customer services is expected to significantly impact the market for testing, inspection, and certification in the telecommunication sector. The surge in demand for interoperability testing for connected devices and the Internet of Things (IoT) is propelling the utilization of testing, inspection, and certification services within the telecommunication domain. Furthermore, the telecommunication industry's heightened emphasis on augmenting customer retention through the provision of top-notch products is envisaged to amplify the market size for testing, inspection, and certification. The expansion of sales of testing, inspection, and certification services is propelled by the necessity to assess and validate IoT-enabled devices, ensuring both data and product security. Additionally, the escalating adoption of interconnected technologies to bolster productivity and efficiency is driving the augmented market share for testing, inspection, and certification within the telecommunications domain. However, smaller and medium-sized telecommunication service providers in testing, inspection, and certification may exhibit a slower adoption of new technologies due to the substantial financial requirements for ongoing research and development, posing potential challenges to market growth.

Impact of COVID-19 on the Testing, Inspection & Certification Services for the Telecommunication Sector Market

Following the declaration of COVID-19 as a global pandemic by the World Health Organization (WHO) in early 2020, governments worldwide implemented stringent measures aimed at curbing virus transmission. These measures encompassed movement restrictions, shelter-in-place directives, and constraints on business operations, permitting only minimal staffing at facilities. The resultant reduction in travel translated to diminished workforce presence across manufacturing sectors globally, directly impacting production levels and inflating overall expenses in 2020, inclusive of unabsorbed overheads and logistical costs.

The compulsion for certifications across diverse sectors such as healthcare, consumer electronics, aerospace, and maritime, coupled with the burgeoning acceptance and usage of IoT-enabled devices necessitating assessment and inspection for quality and durability, has underpinned substantial growth in the testing, inspection, and certification market across various sectors, including telecommunications, in recent years. However, it is anticipated that the onset of the COVID-19 pandemic impeded the demand for testing, inspection, and certification, notably during 2020 and 2021. Supply chain disruptions, resulting in a surplus of items within production facilities due to service shutdowns, contributed to this downturn. The pandemic-induced closure, either partial or complete, of industries, warehouses, enterprises, and institutions worldwide, compounded by additional lockdown measures like stringent social distancing protocols, travel restrictions, and restricted access to industrial premises, electronic enterprises, and warehouses, disrupted operations within the supply chain and logistics services across numerous sectors globally. The market for testing, inspection, and certification suffered from reduced demand for its services amid the pandemic, exacerbated by lockdown measures, constrained consumer and industrial spending, and reduced manufacturing rates stemming from disruptions in the supply chain. Consequently, governments globally redirected their focus towards bolstering healthcare expenditure in response to the pandemic, further impacting the testing, inspection, and certification market.

Market Drivers:

Government imposition of stringent regulatory mandates within the telecom sector propels the expansion of the testing, inspection, and certification market.

With the advent of globalization and liberalization, consumer safety has emerged as a paramount concern. Heightened risks to life have heightened consumer awareness regarding prioritizing safety concerns. Organizations are directing efforts towards enhancing safety through adherence to established regulations, addressing these safety concerns. A predominant concern within the telecom sector revolves around the hazardous radiation emitted by towers, necessitating rigorous monitoring and maintenance. Emphasis on safety and mitigating environmental impacts is accorded utmost priority. Positive government initiatives aimed at revitalizing industries impacted by COVID-19 are anticipated to drive significant recovery and expansion within the TIC market. Growing digitization is poised to further catalyze market growth.

Market Restraints:

Disparate regulations and standards across countries and regions impede market expansion.

Divergent regional laws and standards pose obstacles to international recognition of products as trade and industry witness heightened globalization. Inconsistencies between local and international norms may impede future market growth. Discrepancies in tax regimes stemming from regulatory disparities and benchmark criteria set forth by diverse governments globally are poised to influence market development in the ensuing years. Moreover, prolonged lead times required for comprehensive qualification testing may impede market growth for Testing and Safety Inspection Services within the telecom sector in the forthcoming years.

TESTING, INSPECTION & CERTIFICATION SERVICES FOR THE TELECOMMUNICATION SECTOR MARKET – BY SERVICE

• Testing
• Inspection
• Certification

In terms of service offerings, the Testing, Inspection & Certification services for the Telecommunication Sector Market are categorized into Testing, Inspection, and Certification. In 2021, the testing segment accounted for over 70.0% of the total revenue share. Real-world product testing is crucial for businesses to maintain high standards and meet client demands, prompting investments in testing equipment across various sectors. The inspection sector is expected to witness significant growth, attributed to increased supply chain activities in countries like Switzerland, Japan, Germany, and Norway, facilitating the implementation of inspection procedures. Moreover, stringent regulations by national governments and international bodies regarding equipment quality and radiation emissions from communication towers have prompted businesses in the consumer products industry to establish efficient inspection ecosystems.

TESTING, INSPECTION & CERTIFICATION SERVICES FOR THE TELECOMMUNICATION SECTOR MARKET - BY SOURCING TYPE

• In-house
• Outsourced

Regarding sourcing methods, the Testing, Inspection & Certification services for the Telecommunication Sector Market are divided into In-house and Outsourced segments. In 2021, the in-house segment dominated with a revenue share exceeding 55.0%. In-house testing and inspection techniques enable companies to conduct realistic TIC operations, facilitating onsite personnel engagement and tailored procedures. Internal TIC teams also offer better control and understanding of company processes, advantageous from an organizational perspective. The outsourced sector is poised for substantial expansion, expected to exhibit the highest CAGR during the forecast period. Companies opt for outsourcing to enhance cost-effectiveness and focus on short-term commitments, thereby increasing system efficiency through various engagement models. Furthermore, urbanization and globalization have complicated TIC service supply chains in the telecom industry, leading to the privatization of labs, elevated efficiency standards, and heightened demand for outsourced telecom TIC services.

TESTING, INSPECTION & CERTIFICATION SERVICES FOR THE TELECOMMUNICATION SECTOR MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Geographically, the Testing, Inspection & Certification services for the Telecommunication Sector Market are segmented into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. The Asia Pacific region is anticipated to exhibit the highest CAGR during the forecast period. With a revenue share exceeding 30.0% in 2021, the Asia Pacific region led the global market, driven by economic development in countries like China, India, Japan, and South Korea. This has spurred manufacturing and industrial activities, offering growth opportunities for the telecom sector TIC industry. Additionally, Singapore's rapidly expanding AI technology ecosystem facilitates software and program development, supporting the expansion of testing and inspection services. Investments in manufacturing, electronics, and automobile industries in emerging nations like China, Japan, and India are expected to create numerous opportunities for TIC service providers. The Department for Promotion of Industry and Internal Trade (DPIIT) in India estimates significant investments in the manufacturing sector, positively impacting the telecom sector's testing, inspection, and certification industry.

TESTING, INSPECTION & CERTIFICATION SERVICES FOR THE TELECOMMUNICATION SECTOR MARKET - BY COMPANIES

Key players in the market include:

1. SGS SA
2. BUREAU VERITAS
3. DEKRA CERTIFICATION B.V.
4. INTERTEK GROUP PLC
5. TUV SUD AG
6. APPLUS+
7. ALS LIMITED
8. EUROFINS SCIENTIFIC SE
9. DNV GL
10. SOCOTEC GROUP

NOTABLE DEVELOPMENTS IN THE TESTING, INSPECTION & CERTIFICATION SERVICES FOR THE TELECOMMUNICATION SECTOR MARKET

• COLLABORATION - In January 2022, SGS announced a collaboration with Microsoft to develop and evolve TIC services based on data, IoT, and AI, aiming for sustainability and inclusivity to help clients achieve their full potential.
• ACQUISITION - Applus+, a global testing, inspection, and certification organization, acquired Lightship Security, Inc., a renowned North American provider of product certification services, in February 2022. This strategic move by Applus+ Laboratories aims to reinforce its position in key technologies and competencies to support customers amidst global technological changes driven by electrification, energy transition, and connectivity.