Testing, Inspection, and Certification Services: Impact of AI and Machine Learning in Industry Growth

Key takeaways:

• Introduction
• Recent innovations in the industry
• Launch of novel products in the market

Over the years, independent assortment bodies that provide testing, inspection, auditing, verification, quality assurance, and certification services have become essential in both the public as well as private sectors. Testing, inspection, and certification services help both government departments and private companies ensure product quality. These services also build customer trust and improve a brand’s image.

Testing, in this context, refers to processes that help auditors evaluate any service or item based on certain established standards. On the other hand, inspection involves their examination to check whether they adhere to all the necessary norms and regulations. Finally, certification entails the official acknowledgement from the auditor that all the necessary protocols and laws are being followed, thus providing the goods and services a stamp of legality. Since TIC procedures are closely knit, they are generally performed by the same service provider. However, in some cases, certification is done by third-party companies to increase the credibility of the entire process.

Innovations in TIC services opening new investment opportunities

The rising adoption of advanced technologies such as AI, machine learning, and data analytics for simplifying TIC processes is expected to boost the testing, inspection, and certification industry. The market accounted for $226.8 billion in 2022 and is anticipated to reach a sum of $407.2 billion by 2032, rising at a CAGR of 6.3% during 2023-2032. Many auditing companies have started using AI-based tools to perform quality assurance tests. The ability of these innovative technologies to study large volumes of datasets has made them ideal for industries like oil and gas exploration, food processing, pharmaceutical, and chemical manufacturing. These tools can identify different patterns in operational workflows and production processes, which help them predict the problems that are possible to arise in the future.

Similarly, IoT devices help auditors check different things remotely, making sure the client follows rules all the time. The real-time tracking offered by smart devices aids TIC service providers in checking the performance of their clients based on various parameters, thus enhancing the quality of testing and inspection procedures.

Product launches by industry giants are impacting the sector positively

In the last few years, several companies have unveiled cutting-edge auditing solutions to strengthen their position in the testing, inspection, and certification market. In June 2023, for instance, DEKRA, a vehicle testing and inspection organization, announced the launch of AI-based testing and certification services. DEKRA has been a global leader in TIC services for the last 100 years, and the development of this new system is anticipated to further increase its footprint in the industry in the coming period. As per the press release issued by the company, the emergence of AI has created numerous opportunities in the industry, and this product launch will help DEKRA to cater to the evolving demands of its consumer base effectively in the coming period.

In April 2024, Intertek, a British assurance, inspection, and product testing company, introduced iCare, a one-stop digital portal designed for textile manufacturers in India to monitor their testing processes. With an intuitive and interactive dashboard, the platform allows customers to easily place test requests, track the progress of inspection procedures, and download reports. With more than 1000 laboratories in 100+ countries, Intertek has been one of the biggest players in the industry, and this product launch is anticipated to boost its revenue share in the coming period.

To summarize, the growing demand of TIC services in food processing, automobile manufacturing, and pharmaceutical industries is predicted to create numerous investment opportunities. Additionally, integration of AI and machine learning is estimated to accelerate sectoral growth in the near future.

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