The Steady Growth and Resilience of the TIC Sector: Exploring Future Trends and Investment Opportunities
Ysée Long
Testing, Inspection, and Certification (TIC)In the ever-shifting landscape of industries, one sector stands firm as an unwavering anchor.
Unfazed by the tumultuous waves of change, this sector has not only showcased exceptional resilience during the Covid-19 pandemic but has also maintained an impressive trajectory of steady growth. Bolstered by three promising megatrends, the TIC sector is poised for an exciting expansion in the years to come.
The Indispensable Role of the TIC Sector Across Industries
Embedded within a myriad of industries – from construction and manufacturing to food, agriculture, energy, and chemicals – the TIC sector holds an irreplaceable position in ensuring the safety, quality, and dependability of products and services. Its role is pivotal in safeguarding public health and safety, environmental integrity, and consumer trust. This sector’s resilience is deeply rooted in its extensive range of services and its critical function, making it a reliable bedrock even in times of unprecedented crisis.
Navigating Uncertainty: Resilience of TIC Companies Amidst Challenges
Despite the havoc wreaked by the Covid-19 pandemic across various sectors, major listed TIC companies emerged as beacons of resilience in 2020. Remarkably, these companies maintained a relatively stable EBITDA margin despite experiencing a dip in revenue. This steadfastness serves as a testament to their adaptability in the face of unexpected hurdles and their prowess in responding to market shifts.
Fundamental Growth Drivers in the TIC Sector
Fueling the sector’s steadfast growth is an ongoing trend towards outsourcing. Fueled by a convergence of cost-saving incentives and regulatory demands for independence, independent TIC companies are steadily ascending. Notably, current statistics indicate that independent players in the TIC sector hold around 40% of the total conformity assessment market, with the remaining 60% shared between insourced entities and governmental bodies.
The TIC sector’s growth is further propelled by stringent regulatory mandates pertaining to quality, safety, and environmental impact. Moreover, as consumer awareness about quality, safety, and sustainability escalates – particularly within the realms of food and pharmaceuticals – this heightened consciousness becomes a pivotal driver of the sector’s ongoing expansion.
Looking to the Future: ESG solutions, industrial relocation and digitization
On the horizon, three transformative mega-trends are poised to propel the sector’s growth into overdrive. First and foremost, the soaring demand for Environmental, Social, and Governance (ESG) solutions, both from existing and potential clients, is set to reshape the landscape. Secondly, the rise of industrial relocation offers fresh avenues to fortify supply chains, opening doors for the TIC sector to play an instrumental role. Lastly, as a technological and digital metamorphosis engulfs industries far and wide, the TIC sector stands to reap significant benefits from this ongoing transformation.
Charting the Path Forward: The TIC Sector's Unwavering Momentum
Looking ahead to the upcoming years, the TIC sector demonstrates an unwavering momentum, even amid the global backdrop of geopolitical tensions, labor scarcities, and pandemic-induced lockdowns. Major TIC companies listed on the global stage continue to flourish, cultivating revenue growth and stable EBITDA margins. This remarkable performance underscores their resilience and capacity to navigate a volatile marketplace.
Partnering for Progress: Bryan Garnier's Role in the TIC Sector
At Bryan Garnier, our commitment to supporting companies in high-growth, dynamic sectors like TIC is unwavering. Armed with deep-seated industry expertise, a global perspective, and a comprehensive service platform, we stand poised to equip our clients with the insights and tools essential for their success. As we gaze into the future, we are excited to stand shoulder-to-shoulder with our clients as they navigate this ever-evolving landscape and emerge as true global frontrunners.
Investor Insight: Tapping into the TIC Sector's Potential
The key takeaway for potential investors is crystal clear: the Testing, Inspection, and Certification (TIC) sector presents robust prospects and commendable resilience. With the mounting demand for ESG solutions, the surge in industrial relocations promising supply chain security, and the pervasive digital transformation sweeping industries, the sector’s growth trajectory seems unstoppable. Additionally, the TIC sector is projected to attain a valuation exceeding EUR 250 billion by 2025, accompanied by a projected Compound Annual Growth Rate (CAGR) of 4.6%. This alluring potential positions the sector as an attractive investment opportunity with the possibility of mergers and acquisitions further fueling fragmentation.
Cybersecurity: Investor Playbook
PARIS | LONDON | 31ST May, 2023 – BG IRIS, Bryan Garnier’s research platform, is pleased to release the “CYBERSECURITY – Investor Playbook ”, a comprehensive analysis of the cybersecurity industry trends and M&A market activities.
The cybersecurity market will continue to thrive but is often difficult for investors to navigate. Our white paper provides an analytical framework to identify winning businesses, and features exclusive interviews with some of the most sophisticated investors in cybersecurity.
Cyberattacks are becoming increasingly sophisticated and can spread globally within minutes, if not seconds. The stakes are high for the victims. In a digital economy, the quantity and value of data being generated are rapidly increasing and are crucial for any business. But organizations still fall short in their efforts to prevent cyberattacks. According to some estimates, the financial losses incurred from cyberattacks far exceed the costs spent on prevention, ranging from three to five times higher.
To request the White Paper, please contact your Bryan Garnier representative.
Paul Charpentier
BG IRIS
Request the report
Please complete the form below to receive the report.
Navigating the ever-evolving advertising landscape: Performance-based advertising needs are driving a sizzling M&A market
PARIS | LONDON | April 14th, 2023 – BG IRIS, Bryan Garnier’s research platform, is pleased to release the “Navigating the Ever-evolving Digital Advertising Landscape: Performance-based advertising needs are driving a sizzling M&A market” white paper, a comprehensive analysis of the digital advertising industry trends and M&A market activities.
As rapid technology advancements lead us into the digital age, digital advertising has become ever more important for businesses to reach and engage with customers. Performance-based advertising needs are fuelling the hottest trends in the advertising industry as advertisers increasingly demand that their marketing investments deliver measurable results. Paid search and social media remain popular advertising formats, while high-impact digital video continues to gain traction. Advertisers are also exploring immersive technologies like Augmented Reality (AR) and Virtual Reality (VR) to create more engaging experiences. 2022 witnessed a thriving M&A scene in the Digital Agency, Agency Services, MarTech and Content Creation sectors, and the market remains vibrant thanks to all types of consolidators, including agencies, consultancies and private equity funds.
Discover Bryan Garnier’s latest white paper to get a holistic view of the top trends driving the industry growth, as well as challenges brought by increased scrutiny on data privacy. Learn about the key factors that will shape the future of the digital advertising industry and gain valuable insights into the active consolidators in the M&A market. Contact your Bryan Garnier representative if you would like to speak to the author, Shuo Wang.
Shuo Wang
Equity Research
Sourcing it up: Growth opportunities in the TIC sector
PARIS | LONDON | March 14th, 2023 –BG IRIS, Bryan Garnier’s research platform, is pleased to release “Sourcing it up: Growth opportunities in the TIC sector” – an in-depth analysis of the global TIC sector: a resilient market driven by ongoing outsourcing and favorable regulatory trends, as well as poised for accelerating M&A activity.
Bryan Garnier’s latest white paper takes a deep-dive into the Testing, Inspection, and Certification (TIC) sector, which has shown remarkable resilience, growth, and adaptability during the pandemic. We expect growth to accelerate, driven by tailwinds from three secular trends: increasing demand for ESG solutions, industrial relocation, and technological & digital transformation. Mergers and acquisitions are a key strategy for TIC companies to achieve higher growth, with competition from regional competitors and Private Equity firms accelerating M&A activity in the sector.
Discover our latest white paper to gain valuable insights into the TIC sector, make informed investment decisions and find out how mergers and acquisitions can drive growth in this fragmented market with vast opportunities. Contact your Bryan Garnier representative if you would like to speak to the author, Yizhi Long.
Ysée Long
Investment Banking