The future of the TIC sector: opportunity in transformation

Regulatory developments, technological innovation and evolving client needs are the three biggest drivers of future opportunities to expand earnings, boost valuations and accelerate corporate activity, according to a panel of CEOs presenting at Investec’s TIC conference in London.
 

Regulatory demands

Regulation remains one of the biggest engines of demand. From construction to pharmaceuticals to healthcare, compliance pressures are ratcheting up across most sectors. Stringent EU directives require continual testing and certification, making third-party TIC services essential for accessing domestic and international markets.

The European TIC market is set to reach over $60 billion this year, with a projected CAGR of 5.3% by 2030¹. Increasing government, corporate, and consumer standards will drive growth, with tech-enablement and innovative software solutions becoming increasingly important for compliance delivery.

However, it is imperative that TIC providers ensure they bring an “economic value proposition” as well as technical benefits, according to Hugo Cence, founder and CEO of Ekoscan.
 

Replicability: standardising success

There is increasing demand for replicable and standardised solutions, particularly as providers expand their reach. Jonathan Risch, CEO at Arcxis outlined how important it is to “maintain consistency and quality through rapid growth”. Digitisation and automation have a major role to play in meeting that requirement.

Remote monitoring is facilitating a shift from periodic spot checks to continuous, embedded monitoring. Tech-enabled solutions are also driving efficiency and service advancements, moving TIC providers into roles that deliver ongoing value rather than one-off certification.

This creates opportunities for platforms that streamline workflows, reduce costs, and scale operations. The rise of ‘plug-and-play’ solutions also means that players with proven digital capability are well placed to take share from legacy providers – a dynamic already reflected in recent bolt-on deals.
 

Seamless servicing: beyond the test

Developing integrated testing, inspection and servicing solutions is another area of growth. Several TIC providers are not just flagging compliance failures but offering problem solving solutions. For example, a failed fire safety inspection could be resolved at the point of service with the tester managing on behalf of the client the supply and installation of required extinguishers.

These add-ons foster deeper, stickier client relationships and drive incremental revenue streams. As outlined by Udo Waltman, CEO at Sansidor, “We're in a service business. If we don't focus on what our customers need and want and how to make them successful, we won't be successful”. Investors in the sector are actively targeting businesses that can digitise the compliance cycle and leverage client data for cross-sell opportunities, reinforcing TIC’s potential to shift from check-box expenditure to value-added partnerships.
 

Industry fragmentation to drive deals

M&A activity in the TIC sector has seen strong and steady growth since the reopening of markets following the COVID-19 pandemic, with sector activity reaching an all-time high of 153 transactions in the trailing twelve months to June 2025. Turbocharged growth of PE-backed, TIC buy-and-build platforms such as Phenna and Normec, alongside ongoing growth and consolidation by the listed TIC majors, have been key factors in driving increased activity levels in the sector. Europe has continued to be a dominant region for the sector, with over 65% of transactions involving a European target company.²

TIC M&A transactions - trailing twelve months

Source: Mergermarket. Based on acquisitions completed by a diversified set of companies across the TIC sector alongside select private equity acquisitions of TIC platforms

While M&A volumes in the sector have continued to grow, the TIC sector has seen an increase in acquisition valuations – across both <£25m and >£25m revenue TIC companies. Key drivers over the past 5 years include continued activity by larger private equity backed and listed consolidators as well as ongoing, high levels of investment by private equity into the sector – driving EBITDA multiples to c.15.0x for scaled TIC providers:
 

Increasing valuations over time with scale a drive of values

Source: Investec internal deal database: 2010 to 2025

Key drivers of value in recent processesRecent transactions in the sector have highlighted several key themes as drivers of value, including i) underlying market growth dynamics, ii) differentiation leading to high, defensible margins, and iii) the ability to drive growth through M&A and complementary service offerings – driving cross sell:

Key drivers of value in recent processes

Resilience and outlook

The European market’s resilience and growth potential remain strong. Investment in platforms that can anticipate regulatory shifts, embed technology, and deliver complementary, client-led solutions will be key to capturing future opportunities. With compliance demands only increasing, standardisation and scalability are imperative. M&A activity shows little sign of easing, making the sector one of the most attractive areas for investors and corporates that embrace transformation.