The global Testing Laboratories market is projected to reach US$118.4 billion by 2024, driven by the globalization of trade, the ensuing operational focus on product quality and safety to ensure competitiveness, and implementation of new and stringent regulations.
Testing Laboratories industry comprises establishments, both independent and those operating as part of a corporate entity, offering a wide range of chemical, physical and analytical testing services, including vibration or acoustics testing, biological testing, mechanical testing, certification and calibration, food testing; thermal testing, product testing; geotechnical testing and nondestructive testing, among others. Such laboratories perform chemical and physical tests on products or processes to provide analytical information on the quality of concerned objects. Testing laboratories are associated with testing products or processes to ascertain their safety and to provide certifications. Such testing often involves measuring the flow of fluids, water, steam, propellants and chemicals. Results obtained through these tests are compared to environmental, product, and industrial standards, and checked to ensure compliance with government regulations. Labs perform testing either onsite, which involve field studies, or in an independent laboratory offsite.
Over the years, role of testing laboratory services has gained prominence in several industry sectors, driven by the considerable benefits offered to these businesses. Globalization of trade, rising concerns over product quality and safety, implementation of new standards and stringent regulations, and the trend towards outsourcing of testing operations are driving growth in the global testing laboratories market. Development of new and advanced testing technologies and processes and growing awareness among industry participants and consumers about product quality and safety, specifically with regard to food products that carry high health risks, are necessitating various industries to opt for testing services. Rising demand for a wide range of consumer products and significant diversity of products are providing substantial impetus to product testing and certification services.
Other factors contributing to the growth in testing services are the escalating cost of product liability insurance, lack of comparable testing facilities within smaller facilities, and continued desire from large corporations to rely on independent testing facilities for securing independent results. The development of increasingly advanced products and growing complexity of supply chains are also enhancing the significance of testing laboratories. Manufacturers also opt for testing services to protect their highly valuable brand assets, amidst rising consumer awareness and constant scrutiny.
The United States represents the largest market, worldwide, supported by growing R&D investments by government and industry players for developing new products and services. Asia-Pacific is forecast to grow at the fastest CAGR of 8.5% over the analysis period, led by rapid pace of industrialization and infrastructure development activities; rise of China, India and Taiwan and South Korea as global hubs for manufacturing and production activity; trend towards outsourcing testing services to low cost Asian countries; legislation of stringent product safety protocols and standards, and growing pressure on manufacturing for export oriented economies like China and Taiwan to ensure competitiveness with global players and international standards.
Major players in the market include Bureau Veritas Group, CSA Group, ELCA Laboratories, Eurofins Scientific Group, Eurofins GeneScan, FM Approvals, Foodtest Laboratories Ltd., Genetic ID, Geotechnical Engineering Ltd., Intertek Group plc, Merieux Nutrisciences Corporation, MET Laboratories Inc., National Technical Systems Inc., NGC Testing Services, Retlif Testing Laboratories, SGS S.A., TUVRheinland, TUV SUD America Inc., and Underwriters Laboratories Inc., among others.