Testing, Inspection and Certification Services

Testing, Inspection and Certification Services Global Market Outlook

• The global oil and gas TIC services demand is estimated to be at $24.7 billion in 2023 and is expected to reach $28.5 billion by 2026, growing at the CAGR of 4-6 percent

• The oil and gas market has been bouncing back from the fall and the increasing number of rig counts. The TIC market is expected to increase in Q1 2023 due to anticipated rise in oil and gas activities

Global Market Overview for TIC services

• Global TIC services market is estimated to be at $263.3 billion in 2023, growing at CAGR of 5.63 percent, to reach $309.2 by 2026

• The market for testing, inspection, and certification is expanding as a result of stringent government rules pertaining to food and consumer product testing, mandatory inspection requirements, and increased trading of consumer products as a result of digital transformation

• The TIC market is growing, supported by the introduction of advanced technologies, for instance in an industry, like healthcare and consumer electronics virtual inspection and remote audits expands the service deliverables beyond classification activities

• Although the preference for government or in-house TIC services is high in the current market. A shift to outsourcing and privatization is observed in the industry. This shift is due to the need to protect the global corporation’s brand image in the international market coupled with regulatory compliance

Market Drivers and Constraints : TIC services

• Fluctuation in oil prices would directly impact the TIC services, especially for exploration activities. This could be used as negotiating lever, while engaging with TIC service provider in U/S sector.

Drivers

• Steady demand for services like risk analysis, environmental impact assessments to mitigation plans, construction assistance, and integrity of assets and equipment in operation for subsectors such as exploration, production, refining and processing ​is expected to drive the TIC market in the upcoming quarters

• Despite the long-term goal of transition to clean energy, there has been a surge in new oil and gas development projects in Europe, particularly gas projects to expand supplies. Majority of the new development and expansion initiatives are being registered in the North Sea. Norway is anticipated to have the second-highest increase in production output in 2023

• Increase in stringent rules to maintain standards across multiple industries, especially in developing countries such as China, India and other Asian emerging economies is expected to drive the demand for TIC services in the APAC region in the upcoming years

• Recovering oil price is driving the need TIC to cut short the expenses, as most of the oil and gas players now would focus on cost-saving strategies

Constraints

• Oil price have registered a plunge in recent times and also went into negative territory few months back. This has led to reduced scope for exploration activities. Hence, this is expected to reduce the demand for TIC services from the upstream sector

• High inflation in major economies across the globe is looming potential threat to the oil and gas industry, which could significantly impact the demand for oil products

• Talent supply in developed economies has been under severe pressure, due to an aging workforce, high youth unemployment, tighter labor markets, an increase in automation, etc.

• Geopolitical tension in Europe is expected to impact negatively TIC market in Europe. This would drive down the demand for TIC services