Market Trends of Europe TIC Industry
Consumer Goods and Retail Segment is Expected to Hold Significant Market Share
- Due to the increasing competition in Europe from new markets and rising requirements for quality from consumers, quality security and compliance solutions are vital for customers. Most of the retail services and consumer goods make use of testing and certification. Considering the region's growth of online retail platforms, retail and consumer products are expected to become the fastest-growing segment.
- According to the OECD, in 2023, the total retail trade sales volume index in the European Union remained nearly unchanged at around 114.08. In 2022, the European Union saw its total retail trade sales volume index peak at approximately 116.5.
- TIC services offered by the market vendors cover the entire consumer products' value chain from the plan, buy, and push to ship, stock, and sell to allow informed quality and sourcing decisions. The testing services verify that the products are safe and conform to various specifications. The advisory and inspection services are helpful as they allow consumers to satisfy regulatory requirements.
- Also, the pandemic has fueled the demand for connected consumer electronics and IoT devices. Hence, various European vendors are increasingly offering services for IoT devices and expanding their presence in this space. The growth in wireless devices also needs certification to address multiple technologies, including Bluetooth SIG, NFC Forum, LoRa Alliance, Sigfox, GCF, and PTCRB for cellular.
- Moreover, rising consumer goods production in the area also creates significant demand for TIC services. For instance, as per Eurostat, in September 2022, compared with September 2021, the production of non-durable consumer goods rose by 5.7%, and that of durable consumer goods increased by 3.6% in the EU.
- Consumer and residence electronics are regulated under a broad range of policy instruments in the EU, including legislation on general product safety, sector-specific regulation, and consumer protection provisions. Consequently, manufacturers and sellers must comply with many rules, creating significant demand for TIC services.
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Germany is Expected to Witness Significant Growth
- The growing automotive production and trends, like electric vehicles and autonomous cars, are anticipated to increase the need and adoption of TIC services in Germany. According to KBA, as of April 2024, in Germany, there were 9,36,486 plug-in hybrid electric (PHEV) cars, a significant boost compared to the year before.
- Further, The independent testing institute ISP recently brought into operation its new EV battery testing center in Salzbergen in northwest Germany, which is expected to deliver all testing services for EV batteries.
- Moreover, the country is a significant oil, coal, and natural gas consumer. The country's demand for oil is growing with its economy. With the United Kingdom's exit from the European Union nations, Germany has more supremacy over the EU market than before. The size and location of the country give it considerable influence over the European Union's energy sector. According to the German Association of Energy and Water Industries, in 2022, the country's natural gas consumption stood at 866.2 billion kWh (almost 80 bcm). Domestic production met 5.5% of the country's demand.
- Furthermore, according to the industry association AGEB, the primary power consumption of natural gas in Germany has been increasing. In 2022, natural gas consumption in the country rose to 4,160 petajoules from 4,039 petajoules in the previous year.
- Considering the rising trends, the government has targeted a 55 percent emissions cut in the oil and gas and automotive sectors by 2030 and intends to introduce carbon pricing for building and transportation sector emissions from 2021. Furthermore, Germany's power sector is one of the primary sources of need for testing and inspection services after the oil and gas sector.
- In Germany, the federal states are responsible for official food management and inspection tests. Businesses involved in producing, processing, and selling foodstuffs must document the quality of raw materials used by conducting in-house checks. The growing need for food safety and the increasing international trade are expected to offer potential opportunities during the forecast period.
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