Article written by James Chiang and Prachi Agarwal
Most of us rarely stop to think about what makes the buildings and infrastructure around us safe. Yet behind almost every place we live and work lies a rigorous process of building compliance, a segment of the wider Testing, Inspection, Certification, and Compliance (TICC) industry focused on ensuring buildings and their components meet legal, safety, and environmental standards. It’s what keeps our spaces efficient and secure, ensuring that the environments we depend on everyday are built to perform safely and sustainably.
In 2025, the global TICC sector is already valued at around USD 279 billion and is forecast to grow steadily at over 5% per year for the next decade. This resilience and scale are increasingly attracting the attention of investors, who recognise its significant long-term growth potential. For mid-market investors, building compliance represents not only stability but also the chance to help specialist businesses scale and capture a larger share of a vital global market.
Resilience and Growth of the Building Compliance Sector
Driven by the non-discretionary need for safety and regulatory adherence, building compliance has established itself as a highly resilient sector across economic cycles. Even in periods of slowdown, businesses must continue to test, inspect, and certify their buildings and facilities. Europe alone accounted for 30% of the global building code compliance market, which is expected to grow a compound annual growth rate of 9% from 2025 to 2032. This underscores how embedded, yet steadily expanding, these services are, even in a mature market.
Growth is being driven by several structural factors: increasing regulatory requirements; a stronger focus on risk management and adherence as organisations become less willing to tolerate compliance failures; and new technologies that enable better monitoring, data-driven planning, and proactive management of compliance activities. Together, these forces make building compliance not only resilient, but also a market with durable, long-term momentum and opportunities for organisations to benefit from these evolving dynamics.
The consolidation trend continues at pace
Given its scale and diversity, the industry today remains highly fragmented, with thousands of specialist providers operating across different markets and regions.
While the market has always seen consolidation, the rate of consolidation has started to increase over recent years. Larger groups that can scale benefit from efficiencies in sales and delivery, investment in advanced technology, and the ability to attract and retain scarce specialist talent, an increasingly valuable resource given the industry’s ongoing skills shortage in the UK. Consolidation also allows providers to offer clients a broader range of services and greater consistency across markets.
For investors, it provides a clear path to growth and long-term value creation, supported by the sector’s resilience and the defensible positions of accredited, experienced operators. The consolidation trend should lead to increased quality, regulatory adherence and provide a pathway for the expansion of technical talent. However, it may also drive up competition and widen the gap between those with the scale to fund continual investments and advance their proposition and those without.
The Role of Private Equity in the Market
From an investor’s perspective, the appeal of building compliance is clear. The non-discretionary nature of demand, combined with recurring revenue streams, creates a predictable and stable income profile. Contracts are often multi-year and embedded in customers’ operations, providing a high degree of visibility on future earnings.
This makes the sector particularly appealing to mid-market private equity investors. In 2015, private equity accounted for around 22% of global TICC M&A transactions. By the first half of 2025, that share had risen to 36%, highlighting how investors are increasingly drawn to the sector’s combination of stability, consolidation opportunity, and long-term regulatory growth drivers such as sustainability and energy transition.
For founders and management teams, partnering with private equity can be equally transformative. An investor can provide capital to expand service lines, increase geographic reach, and invest in technology that enhances service quality and efficiency. It also enables businesses to capitalise on consolidation opportunities in a fragmented market. With private equity backing, leadership teams can attract key talent, strengthen organisational capability, and build the foundations needed to capitalise on a rapidly evolving and opportunity-rich sector.
Phoenix has seen this opportunity first-hand through our successful partnership with EDIF Group, a leading provider of inspection, certification, and consultancy services. Under our ownership, EDIF expanded both organically and through acquisition, strengthening its position as a trusted compliance partner.
Key Takeaways
The building compliance industry combines resilience, opportunity, and long-term growth potential. It matters to businesses navigating complex regulation, to consumers who rely on safe facilities, and to economies that depend on standards to function effectively.
At Phoenix, we are committed to supporting ambitious businesses in this space, bringing the investment, experience, and strategic support required to help them scale and consolidate.
Regulation and safety will continue to shape global markets. As such, the demand for building compliance services is not only enduring but set to grow, making this an exciting and important sector for years to come.
Are you a business leader in the building compliance space considering growth or consolidation? Contact us today to discuss how we can support your journey.
