KBS - Testing, Inspection, Certification & Compliance - Market Insight

MARKET INSIGHT The global TICC market was valued at $225.1bn in 2022, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2023 to 2030. Key market players include SGS SA (Switzerland), Bureau Veritas (France) and Intertek Group Plc (UK). The energy efficiency services market size in the UK is expected to grow at a CAGR of 7.7% between 2024 and 2029, while the environmental compliance market is forecast to be $3.26bn by 2032, exhibiting a growth rate (CAGR) of 5.50% from 2024-2032. The industrial & environmental services sector’s M&A activity was strong in 2024 with 137 deals announced or completed. This can be attributed to increased demand for infrastructure, environmental clean-up and sustainable waste management solutions. INTERNATIONAL COMPLIANCE Firms are acquiring companies worldwide to increase their global reach and meet country/regional specific regulations. For example, ALS completed an acquisition of Wessling Group, an independent environmental, pharmaceutical and food testing group with a strong presence across 26 locations in Germany, France, Switzerland and Romania. NET ZERO The UK is committed to achieving net zero. This sector is growing at a rate of three times the UK economy, having grown 10% in 2024. Scotland’s NetZero economy has grown 21.3% since 2022. Around £84bn has been generated in gross value added, while supporting 951,400 jobs in the UK. Net zero businesses have gained £23bn in funding and £1.1bn in grants. FIGURE 5: Cumulative third-party investment funding into net zero businesses per year since 2019

£25,000

£2,862

£20,000

£6,368

£15,000

£5,792

£10,000

£5,000

£5,852

£0 Investment Funding (£m) 2019

£1,142

2020

2021

2022

2023

2024

Total Previous Investment (Since 2019)

New Investment

Source: CBI Economics