Consumer Product Safety Testing Market - Forecasts from 2023 to 2028

The consumer product safety testing market is estimated to grow at a CAGR of 5.23% during the forecast period.

The consumer product safety testing market is anticipated to generate high revenue generation opportunities for the stakeholders. Safety testing of consumer products includes the entire process of testing and certifying those products to achieve compliance with mandated consumer product safety standards before they are sold to the end users for consumption. As literacy and education rates are rising globally, consumers are becoming aware of the need for a certain level of quality and safety in the products being purchased. Therefore, the need for consumer product safety testing arises. This is done to ensure that the products being sold by manufacturers are safe for public usage and conform to a set of standards that have been established.

The major drivers for the growth of this market include increased awareness about the importance of product safety and government and institutional regulations regarding safety. The consumer product safety testing market can be classified in the following ways: by offering, sourcing, industry vertical, and geographic region.

Government Regulations:

There has been increasing oversight from government institutional bodies in multiple nations towards product safety testing. The safety of consumers is prioritized by governments. As such, it is part of their duty to ensure that proper bodies are set up to oversee the entire safety testing procedure for several categories of products, especially those that may cause harm due to lack of safety. For instance, The United States government has set up the Consumer Product Safety Commission, which is in charge of ensuring proper testing and certification of several important products.

Market Drivers:

Increased awareness about product safety.

There is an increase in consumer awareness about the importance of product safety testing owing to the growing literacy and education rates and awareness programs. Thus, consumers are now demanding a certain level of guarantee regarding safety standards while making purchasing decisions. This has forced manufacturers to devote attention to these safety standards to ensure customer retention and continuous demand for their products. Therefore, as consumer awareness about the importance of safety testing grows, the demand for product safety testing from manufacturers will also grow to keep their products relevant, leading to the growth of the consumer product safety testing market size.

Demand for interoperability testing.

The market for consumer product safety testing is also expected to grow due to an increase in demand for interoperability testing for IoT and connected devices. Interoperability testing refers to a type of testing done on software programs or technologies to determine whether there are any compatibility issues with other software or technology and to check if there is cross-use functionality. With the increase in the usage of smart electronics and the promotion of connected device ecosystems, the need for interoperability testing will continue to increase, which will grow the consumer product safety testing market.

High cost of product safety testing.

A significant challenge faced by this industry relates to the high costs of product safety testing, which acts as a hindrance to the growth of the industry as it negatively impacts the demand. There is a huge cost associated with using product safety testing services due to the differing nature of products and different regulations for different products. Additionally, a company operating in multiple nations will have to adhere its products to the regulations and standards of each country, which sometimes vastly differ. This adds to the cost of safety testing, which makes it less cost-effective for manufacturers.

Products offered by key players.

• Bureau Veritas offers consumer product testing services that help manufacturers to evaluate the performance of their products with the end-users, compare it against competitors or industry standards, conform to global regulations for compliance, and analyze the impact of environmental factors on their products. The company offers a range of testing services for quality, performance, safety, electromagnetic compatibility, environmental performance, reliability, and grid connectivity.
• DEKRA offers safety testing services for consumer electronic products and machinery that help manufacturers verify the safety conformance of their products to national or international standards. Their services also involve pointing out any deficiencies in products and their probable causes, which help manufacturers with identifying the problems that need to be tweaked to meet the standards.

The Asia-Pacific region is expected to account for a significant share of the consumer safety product testing market.

Asia Pacific is expected to constitute a significant share of the consumer safety product testing industry, and similar trends are expected to be followed in the forecast period. This market share is owed to the growth in electronics and automotive sectors in the major economies of the region, such as China and India, as well as the growing electronics industry bases in countries like China, South Korea, and Japan.

Chinese and Indian Market Outlook

China holds one of the largest electronics and electrical devices production bases in the world and is also considered one of the largest manufacturing hubs globally. Therefore, there will be a steady demand for product safety testing services from manufacturers in the nation to ensure that their products meet regulatory standards. In India, similarly, the increased demand for electrical products will help in driving the demand for product safety testing services, as well as from other growing industries such as automotive and semiconductors.

Forecast for the Rest of the World.

It is anticipated that North American and European markets will experience moderate growth over the projected period. The demand for consumer product safety testing in the United States is expected to surge due to an increase in industrial operations in the electronics, automobiles, and defense sectors.

Market Developments:

• In June 2022, Bureau Veritas announced the acquisition of Advanced Testing Laboratory, an American-based leader in scientific sourcing services in several consumer healthcare, personal care, and medical device markets. The acquisition is expected to strengthen Bureau Veritas' market presence in the North American markets in several stages of product development, including product safety, regulatory compliance, and quality assurance.
• In May 2021, DEKRA, a global leader in testing and certification, announced the acquisition of Italy-based Centro Misure Compatibilita (CMC), a compatibility testing organization. This acquisition is expected to enhance DEKRA's network of electromagnetic compatibility and radio frequency testing laboratories, as well as electrical safety and reliability testing. The acquisition also benefits the company in terms of access to the acquired company's high-tech laboratories.
• In July 2021, TUV SUD announced the acquisition of the testing division of PROSE Group, based out of Switzerland. The acquisition is expected to increase the operations of TUV in the testing of rolling stock and its components. It cements the company's position as one of the global leaders of testing and certification services in the rail industry.

Market Segmentation:

By Offering

• Electronic Safety
• Connectivity
• Electronics Testing
• Energy Efficiency Testing
• Others

By Sourcing

• Inhouse
• Outsource

By Industry Vertical

• Communication and Technology
• Aerospace & Defense
• Semiconductor
• Consumer Electronics
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others