Market Trends of TIC Industry For The Metals And Minerals Industry
Construction Industry to be the Largest End User
- The TIC market plays an important role in the construction and engineering sector. One of the most significant applications of TIC in the construction and engineering sector is the testing of construction materials. This includes evaluating the strength, durability, and composition of materials such as steel, concrete, asphalt, and aggregates. TIC ensures that these materials meet the required standards and specifications, guaranteeing the quality and structural integrity of buildings, roads, bridges, and other infrastructure.
- The construction industry utilizes TIC services to ensure that metals and materials used in building structures meet safety and performance standards. This includes testing the strength and durability of steel, concrete, and other materials. Compliance with building codes and regulations is essential to prevent structural failures and ensure the safety of occupants.
- Intertek is one such company that uses a wide range of sampling procedures and destructive and non-destructive testing methods to verify the quality, strength, and durability of construction materials like concrete, asphalt, soils, aggregates, steel, roofing, and masonry. Proper testing and construction monitoring will identify defects or weaknesses in the material, preventing rework and delays in the short term as well as costly repairs and premature failure in the long run.
- Compliance with international and local regulations is important in the construction and engineering sector. TIC services assist in ensuring that projects and structures meet the necessary legal requirements and standards. This includes obtaining certifications such as ISO standards, LEED certifications for green buildings, fire safety certificates, and building code compliance. TIC experts help navigate the complex regulatory landscape and ensure adherence to industry best practices.
- As cities expand and populations increase, there is a heightened need for housing, transportation networks, and social infrastructure. This drives construction and engineering projects, such as residential complexes, transportation systems, schools, hospitals, and commercial buildings.
- The global construction industry is expected to grow from a spending value of nearly USD 12 trillion in 2019 to USD 19.2 trillion in 2035 and is expected to grow by 3% per annum, according to the World Bank. This includes building projects in real estate, either residential or commercial, as well as infrastructure or industrial structures. According to the US Census Bureau, in May 2024, about 0.116 million home constructions started in the United States.
- According to the International Tropical Timber Organization (ITTO), India is seeing a construction boom, and India’s Union Minister for Housing and Urban Affairs has suggested that in 2025, the country is set to become the third-largest construction market globally after China and the United States. The construction sector accounts for 9% of India’s GDP and is the second-largest employer in the country. It has been estimated that the industry could grow to USD 1.4 trillion by 2025. Such trends will demand the need for TIC services during the forecast period.
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Asia Pacific Expected to Witness Significant Growth
- China emerges as a swiftly advancing economy in the Asia-Pacific, making it a focal point for the TIC market's growth. Furthermore, increasing consumer awareness regarding product safety and quality is set to propel this growth, especially in equipment testing for the metals and minerals sector.
- China's status as a major producer of essential metals like steel, aluminum, and copper fuels the demand for TIC (testing, inspection, certification) services. In addition, China's swift industrialization and urbanization have spurred a rise in metal consumption, further amplifying the demand for TIC services. According to the NBS of China (National Bureau of Statistics of China), in 2023, China produced 42 million tons of primary aluminum, up from 40.21 million tons in the previous year. In 2023, China produced approximately 1.36 billion tons of steel, marking a 1.7% increase from the prior year.
- Japan's export-orient economy, especially in high-value sectors like automotive and heavy machinery, requires compliance with international standards. TIC services help ensure that the metals and minerals used in exported goods meet the necessary global standards and maintain Japan's competitiveness in the global market.
- Japan's reliance on nuclear energy means that metals and alloys used in reactors and nuclear facilities must meet extremely high safety standards, driving the demand for TIC services, as these services are essential in testing materials for radiation resistance to ensure safety in nuclear power plants.
- South Korea's well-established automotive industry, which includes significant manufacturers like Hyundai and Kia, requires extensive use of steel, aluminum, and high-strength alloys. TIC services help ensure these vehicle materials' quality, safety, and durability. South Korea is investing heavily in the development and production of EVs, driving the demand for critical battery materials like cobalt, lithium, and nickel, driving the demand for TIC services, as these services are crucial for testing the purity to meet both domestic and international regulatory standards, ensuring the reliability and safety for EV batteries.
- The growing manufacturing industry in India will drive the demand for the TIC market. The International Trade Administration reported that the manufacturing sector in India contributed 16% to 17% of the country's GDP before the pandemic. It is expected to increase through the Government of India's National Manufacturing Policy, which includes a plan to increase manufacturing's contribution to GDP to 25% by 2025.
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