China Testing, Inspection And Certification Market Analysis Report By Service, By Sourcing Type, By Application And Segment Forecasts From 2020 To 2027

Industry Insights

The China testing, inspection, and certification (TIC) market size was accounted for USD 33.1 billion in the year 2019 and is projected to grow with a CAGR of 7.8% over the forecast period, 2020 to 2027. Growing foreign investment in China to achieve progressive liberalization is expected to be a major factor for the market growth in China. In addition, the Chinese government has implemented some favorable policies for foreign players to establish their presence in the country which is anticipated to have a positive impact on market growth.

Moreover, the growing penetration and development of hybrid and electric vehicles are expected to increase the demand for testing & inspection activities for these vehicles. The market is expected to gain traction due to the growing investment for the growth of transportation, construction, and energy sectors by the government. Rapidly changing lifestyles of Chinese people have led to an increase in demand for consumer goods, thereby, expected to escalate the market growth over the forecast period. Moreover, the growing adoption of TIC services by several companies working in the automotive, consumer goods, and manufacturing industries is anticipated to propel market growth in the country.

The Chinese government has allowed easy entry to international players by uplifting barriers for foreign companies providing TIC solutions in the market that is being dominated by players operating in the country. The increasing popularity of TIC services for developing and accelerating smart technologies like smart vehicles and smart cities is projected to augment market growth. Increasing implementation of new regulations and standards, growing government alliances, and the rising necessity of third-party inspection services are the key factors that are projected to drive the market growth.

A number of companies in this industry are implementing strategies such as mergers and acquisitions to strengthen their position in the market. For example, in 2018, Intertek Group PLC acquired a Colombia-based service testing provider Proasem. This acquisition aims to spread Intertek Group PLC's business in Latin America and Colombia to increase its customer base. In 2018, U.K based a cyber security solution provider, Nettitude acquired by Lloyd's Register Group Limited to strengthen its cyber security certifications and services.

Service Insights

On the basis of service, the China TIC market is segmented into inspection, testing, and certification. Testing helps to determine the multiple characteristics of products to follow conformity assessment. This segment is projected to account for the largest market share during the forecast period. This is due to the increasing demand across various end-use verticals such as transportation, manufacturing, construction, and automotive in order to analyze the quality of material, components, and chemicals.

The inspection services segment is projected to grow with the fastest CAGR of over 8.5% from 2020 to 2027. This growth is attributed to the growing number of infrastructure and construction development projects in China. Vendors operating in this industry are concentrating on expanding their business through an increasing number of inspection stations. Therefore, market players are adopting some strategies like mergers and acquisitions. For example, in 2018, DEKRA SE announced the acquisition of U.S.-based vehicle testing service provider Jiffy Smog’s emission inspection business. This acquisition aims to increase DEKRA SE’s business in the U.S. by providing 24 emission inspection stations.

Sourcing Type Insights

By sourcing type, the China TIC market is segmented into outsourced and in-house. The in-house segment is expected to lead the market over the forecast period. In recent years, most companies prefer to adopt in-house inspection, as it saves the cost of a company required for involving third-party inspection. However, the cost for in-house TIC services is increased due to the growing number of standards and regulations by the government. Therefore, several companies have started to outsource the TIC services from third-party service providers.

The outsourced sourcing type is projected to exhibit the fastest CAGR during the forecast period. This growth is attributed to the strict application of the China Compulsory Certification (CCC) application in China and regulation for third-party inspection internationally. Constant modification and updates of testing regulations and standards are expected to drive the segment growth.

Application Insights

The application segment is fragmented into agriculture & food, chemicals, manufacturing, consumer goods &retail, infrastructure, mining, healthcare, oil, and gas & petroleum, supply chain, logistics, public sector, energy &power, transportation, and others. The growth of the automotive industry owing to the rising demand for hybrid vehicles, electric vehicles, and autonomous vehicles is expected to drive the market growth in cities such as Shanghai and Guangzhou. In addition, the exponential growth of the e-commerce industry is expected to impel the growth of consumer goods &retail segments. This will generate the need for inspection and verification of products before delivering to the customers.

Moreover, China has developed a green transportation solution by using hybrid and electric vehicles in order to improve the efficiency of the transportation sector. Additionally, China has implemented advanced smart transportation solutions like connected trucks and autonomous cars. Thus, the advent of new technologies is projected to raise the need for services like testing, inspection, and research in the next few years.

Impact of COVID-19

Due to the sudden outbreak of COVID-19 and lockdowns in China, there are various products which have been produced but not yet shipped are left in factories. Thus, prolonged storage of food products, personal care products, and others have generated the need for TIC services.

Several market players operating in this country have taken some initiatives to tackle the covid-19 outbreak. For example, a leading provider of supply chain and quality control, QIMA announced that it will offer free services for inspection of medical protective gear, disposable face masks in China.

China Testing, Inspection & Certification Market Share Insights

The major industry participants operating in this market are Register Group Limited; AsureQuality Limited; DNV GL Group AS; Asia Quality Control; Intertek Group PLC; China Inspection Co., Ltd.; American Bureau of Shipping; Asia Quality Focus; Hartford Steam Boiler; HQTS Group Ltd.; InTouch Services Ltd.; Lloyd’s SGS S.A; Bureau Veritas SA; Centre Testing International; China Certification and Inspection Group; DEKRA SE; V-Trust; TUV SUD; TUV Rheinland AG Group; Underwriters Laboratories Inc.; TUV Nord; China Special Equipment Inspection And Research Institute;  Larsen and Toubro; Asia Inspection; and China Classification Society.

In China, market players are adopting strategies like collaborations, and mergers for exploring opportunities and expanding their business across the globe. In 2018, Bureau Veritas SA acquired construction assessment and project management solution provider EMG Corporation (U.S.). This acquisition aims to develop and expand infrastructure services in the U.S.

Report Scope

Segments Covered in the Report

This report forecasts growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the China Testing, Inspection And Certification (TIC) report based on service, sourcing type, and application:

• Service Outlook (Revenue, USD Billion, 2016 - 2027)
    • Testing
    • Inspection
    • Certification

• Sourcing Type Outlook (Revenue, USD Billion, 2016 - 2027)
    • In-house
    • Outsourced

• Application Outlook (Revenue, USD Billion, 2016 - 2027)
    • Consumer Goods & Retail
        • Personal Care & Beauty Products
        • Hard Goods
        • Soft-liners & Accessories
        • Toys & Juvenile Products
        • Electrical & Electronics
        • Others (Detergents and Non-woven products)
    • Agriculture & Food
        • Seed & Crop
        • Fertilizers
        • Commodities
        • Beverages
            • Alcoholic
                • Beer
                • Spirits
                • Wine
                • Others (Cider and Cocktails)
            • Non-alcoholic
                • Carbonated soft drinks
                • Fruit drinks
                • Bottled water
                • Functional beverages
                • Sports drinks
                • Others (Milk-based drinks)
            • Others (Forestry and Food packaging)
    • Chemicals
        • Asset Integrity Management Services
        • Project Life Cycle Services
        • Finished Product Services
        • Chemical Feedstocks Services
        • Others (Lab design and Operation & Commissioning)
    • Infrastructure
        • Project Management
        • Material Services
        • Construction Machinery & Equipment Services
        • Facilities Management & Inspection Services
        • Others (Supply Chain Services and Quality Health & Safety)
    • Energy & Power
        • Energy sources
            • Nuclear
            • Wind
            • Solar
            • Alternative fuels
            • Fuel Oil & Gases
            • Coal
            • Hydropower
            • Others (Geothermal energy, Tidal energy)
        • Power generation
        • Power Distribution
        • Asset Integrity Management Services
        • Project Life Cycle Services
        • Others (Technical Staffing and Quality & Safety)
    • Manufacturing
        • Suppliers Related Services
        • Production & Products Related Services
        • Projects Related Services
        • Others (Logistics and Safety)
    • HealthCare
        • Medical Devices
        • Health, Beauty, and Wellness
        • Clinical Services
        • Laboratory Services
        • Biopharmaceutical & Pharmaceutical Services
        • Others (Training and Staffing)
    • Mining
        • Inspection & Sampling Service
        • Analytical Service
        • Exploration Service
        • Metallurgy & Process Design
        • Production & Plant Services
        • Project Risk Assessment & Mitigation
    • Oil & Gas and Petroleum
        • Upstream
        • Midstream
        • Downstream
        • Biofuels & Feedstock
        • Petrochemicals
        • Asset Integrity Management Services
        • Project Life Cycle Services
        • Others (Functional safety services)
    • Public Sector
        • Product Conformity Assessment
        • Monitoring Services
        • Valuation Services
        • Others (Road Safety Traffic, E-government, and Technical Verification Programs)
    • Transportation
        • Automotive
            • Electrical Systems & Components
            • Electric Vehicles, Hybrid Electric Vehicles, and Battery Systems
            • Telematics
            • Fuels, Fluids, and Lubricants
            • Interior and Exterior Materials and Components
            • Vehicle Inspection Services (VIS)
            • Homologation Testing
            • Others (Aftermarket distribution)
        • Aerospace &Defence
            • Services for Airports
            • Services for Aviation
            • Services for Aerospace
        • Marine
            • Marine Fuel Systems & Component Services
            • Ship Classification Services
            • Marine Materials & Equipment Services
            • Others (Cargo, Crane, and Vessel)
        • Rail
            • Rail Testing Services
            • Rail Inspection Services
            • Rail Certification Services
            • Others (Lab Testing and Supplier Accreditation)
    • Supply Chain & Logistics
            • Packaging & Handling
            • Risk Management
            • Others (Audits, Certification, and Training)
    • Others