Companies that help manufacturers perform safety and quality testing on consumer products and materials, a.k.a. "laboratory testing services," constitute a $15 billion industry, according to data from IBISWorld.
Over the next five years, the industry is expected to grow 5 percent each year, as fueled by increased government regulation of consumer and food products. Growing consumer concerns over the safety of products â€“ especially childrenâ€™s products â€“ will also add to the demand for testing laboratories.
Additionally, the industry will be driven by the amount of money that companies put into research and development, which appears to be increasing. IBISWorld predicts that in the coming years, companies will invest even more in new products and technologies, therefore giving research and development a healthy boost.
By the numbers:
Expected annual industry revenue growth through 2015, according to IBISWorld: 5 percent
Percentage of the industry accounted for by its top four players, according to IBISWorld: 11
Percentage of the industry taken up by product performance and safety testing: 41