Market Trends of Testing, Inspection, And Certification (TIC) Industry In The Energy And Power Industry
Power Generation to Witness Significant Growth
- The power generation sector plays a fundamental role in global economic development, providing the energy required for various industries and everyday life. With the rising demand for sustainable and reliable power, practical testing, inspection, and certification (TIC) services have become paramount.
- Regulatory compliance is one of the primary market drivers for TIC services in the power generation sector. Governments globally have implemented stringent regulations to ensure power generation facilities' safety, reliability, and environmental sustainability.
- These regulations require power plant operators to undergo comprehensive testing, inspection, and certification to meet the specified standards. Failure to comply with the stringent rules can result in severe legal consequences, penalties, and reputational damage for power generation companies. The demand for TIC services has thus increased significantly as power plants seek to comply with these regulations and maintain their operations smoothly.
- The power generation sector involves complex machinery, high voltages, and hazardous materials, making safety a top priority. Testing, inspection, and certification (TIC) services are crucial in identifying potential safety risks and ensuring that power generation facilities operate within acceptable safety standards. These services include electrical systems, mechanical components, fire safety, radiation exposure, and more. The market demand for TIC services in the power generation sector is driven by the need to mitigate risks, prevent accidents, and safeguard the well-being of workers and surrounding communities.
- Moreover, power generation facilities are capital-intensive investments, and their efficient operation is crucial for meeting energy demands. Testing, inspection, and certification services help ensure that the equipment and systems used in power generation meet the required quality standards. By conducting rigorous testing and inspections, TIC services help identify defects, malfunctions, or inefficiencies in the power generation infrastructure. This enables power plant operators to rectify issues promptly, optimize performance, and improve overall reliability. The need for quality assurance and operational excellence thus drives the market demand for TIC services in the power generation sector.
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Asia Holds the Largest Market Share
- China is among the rapidly growing economies in the Asia-Pacific area, making it an appealing location for the TIC (testing, inspection, and certification) market to thrive. Increasing consumer knowledge about product safety and quality is also anticipated to spur growth in sectors like equipment testing in the energy and power field.
- According to CEC, approximately 2,920 gigawatts of electricity generation capacity had been installed in China as of 2023, up from some 3,000 gigawatts in 2022. Most thermal power is coal-based and is the energy source with the country's most significant power generation capacity. Moreover, according to CEC, China had a total electricity consumption of around 9,220 terawatt hours in 2023. This was a notable increase compared to 2022, when consumption amounted to approximately 8,640 terawatt hours. This increase in electricity consumption will drive the studied market in the country.
- India is one of the most dynamic markets for testing and inspection in the Asia-Pacific region, as it is one of the fastest emerging economies in the region. According to CEA, India's highest energy capacity came from thermal energy, amounting to an installed capacity of over 236 thousand megawatts as of February 2023. Approximately 70% of the country’s electricity generation was from thermal power plants. Coal dominated power supply with a contribution of over 86% through thermal power plants. Along with coal, thermal power is generated from lignite, diesel, and gas.
- During the second wave of the COVID-19 pandemic, UL announced the launch of testing services for India's solar photovoltaic (PV) inverter manufacturers. UL has expanded its facility in Bengaluru to help manufacturers comply with the requirements of the standards mandated by the Ministry of New and Renewable Energy (MNRE). The National Accreditation Board accredits the laboratory for Testing and Calibration Laboratories (NABL). The BIS recognizes it under the Compulsory Registration Scheme (CRS) to conduct testing of solar PV inverters based on testing of representative models.
- Owing to low domestic production in the country, the Japanese government always encouraged its energy companies to increase exploration and development projects globally to secure a stable power generation supply. These initiatives make Japan one of the major exporters of energy-sector capital equipment, making it one of the primary adopters of TIC services.
- In November 2023, Japan's Okinawa Electric Power (9511.T) opened new tab plans to start co-firing hydrogen on a trial basis at a commercial gas-fired power plant in a bid to reduce carbon dioxide (CO2) emissions. The utility aims to achieve a hydrogen co-firing rate of 30% at the 35 megawatts (MW) unit of its Yoshinoura thermal power station in the southern island of Okinawa. Establishing hydrogen co-firing technology is a critical initiative to help achieve two goals: expanding renewable energy and slashing CO2 emissions.
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Testing, Inspection, And Certification (TIC) Market In The Energy And Power Industry Report Snapshots
- Testing, Inspection, And Certification (TIC) Market In The Energy And Power Industry Market Size
- Testing, Inspection, And Certification (TIC) Market In The Energy And Power Industry Market Share
- Testing, Inspection, And Certification (TIC) Market In The Energy And Power Industry Market Trends
- Testing, Inspection, And Certification (TIC) Market In The Energy And Power Industry Companies
