The China testing, inspection, and certification market size was valued at USD 36.51 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2021 to 2028. Increasing foreign investments are expected to drive the growth of the Chinese testing, inspection, and certification (TIC) market. In an attempt to achieve progressive liberalization, the Chinese government has laid down favorable policies for international players to establish their presence in the country. Moreover, increasing adoption and development of alternative fuel vehicles such as electric vehicles and hybrid vehicles are anticipated to increase the testing and inspection activities for such vehicles, thus, driving the growth of the market in China over the forecast period.
The TIC market is expected to grow at a faster pace in the country. This is attributed to the increasing number of government investments that are focused on the growth of the transportation and energy sectors, as well as the construction industry. For instance, according to Minister of Transport Li Xiaopeng, China will invest around USD 372 billion in the transportation industry by 2021. The rising standard of living of citizens led to the rising demand for consumer goods, consequently catalyzing the growth of the market. Furthermore, the growth in outsourcing of testing, inspection, and certification services by prominent companies operating in the manufacturing, automotive, and consumer goods arenas is projected to propel market growth.
The Chinese government has eased the entry of foreign players by uplifting the barriers for international companies offering TIC solutions in the Chinese TIC market, which is being dominated by domestic players. Moreover, the market is expected to grow at a substantial rate owing to the investments made by international players in China The growing popularity of testing and certification services for accelerating and developing smart technologies such as smart cities, smart vehicles, and so on is anticipated to support the growth of the Chinese TIC market. The increasing government alliances, implementation of new standards and regulations, and the increasing need for third-party inspection services are some of the key drivers that are estimated to propel the market growth over the forecast period.
A wide number of companies in the market are strategizing to acquire various companies to expand their footprints in the Chia TIC market. For instance, in April 2018, Intertek Group PLC agreed to acquire Proasem, a Colombia-based service provider of testing, inspection, and metrology services. This acquisition would benefit Intertek Group PLC in increasing its sales/expanding in Colombia and Latin America with the help of Proasem’s expertise and established customer base. In March 2018, the Lloyd's Register Group Limited acquired Nettitude, a cybersecurity solution provider in the UK. This acquisition has enabled Lloyd's Register Group Limited to strengthen its cybersecurity services and certification.
The in-house sourcing segment held the largest market share of around 64.4% in 2020. Previously, most Chinese manufacturers preferred in-house inspection as it enabled saving costs involved in the third-party inspection of a company. However, the cost of in-house inspection, testing, and certification of products increased due to an increasing number of regulations and standards related to TIC, and therefore, several players in the industry have started outsourcing TIC services to third-party service providers.
The outsourced segment is expected to register a high CAGR in the forthcoming years. This is due to the rise of third-party inspection regulation internationally and the stringent application of CCC certification in China. Continuous updates and modification of testing standards and regulations are further anticipated to boost the growth of the segment. This is because it helps in saving the cost of technology and resource investments in testing equipment and processes.
The transportation application segment held the largest market share of around 12.3% in 2020. The application segment has been further categorized into consumer goods and retail, agriculture and food, chemicals, infrastructure, energy and power, manufacturing, healthcare, mining, oil and gas, and petroleum, public sector, transportation, supply chain, and logistics, others. The growth of self-driving vehicles, electric vehicles, and hybrid vehicles is expected to drive the growth of the TIC market in major Chinese cities such as Guangzhou and Shanghai. The growth of the e-commerce market in China is expected to drive the demand for the consumer goods and retail segment. This will lead to an increase in inspection and verification needs of products before their delivery to customers.
The 13th Five Year Plan of China states the development of green transportation solutions such as electric and hybrid vehicles for the advancement of the country’s transportation sector. Furthermore, the Plan elaborates the implementation of innovative smart transportation solutions such as autonomous cars and connected trucks. The growth of such technologies is expected to increase the need for supporting services such as research, testing, and inspection over the forecast period. These factors will drive the growth of the market in the forecast period.
The testing segment held the largest share of around 73.9% in 2020. Based on services, the market has been segmented into testing, inspection, and certification. The testing is the process of determining one or more characteristics of an object of conformity assessment, following a fixed procedure. This segment is expected to hold the largest market share over the forecast period owing to the demand for such services in various industry verticals. These verticals include manufacturing, automotive, and construction for quality and safety analysis of materials, components, chemicals, and electronic & consumer products.
The inspection services segment is expected to expand at the highest CAGR exceeding 9% over the forecast period. The increasing number of construction and infrastructure development projects is further expected to drive the growth of the inspection segment in the Chinese TIC market. Vendors in the market are focusing on expanding the number of stations for emission inspection. To support this, they are focusing on acquisition. For instance, In May 2018, DEKRA SE acquired the emission inspection business of Jiffy Smog, a vehicle testing business in Nevada, U.S. This acquisition has increased the reach of DEKRA SE in Nevada through the provision of 24 stations for emission inspection.
The key industry participants include AsureQuality Limited; Bureau Veritas SA; DEKRA SE; DNV GL Group AS; Intertek Group PLC; Lloyd’s Register Group Limited; SGS S.A; TUV Rheinland AG Group; Underwriters Laboratories Inc.; Asia Quality Focus; HQTS Group Ltd.; InTouch Services Ltd.; China Inspection Co., Ltd.; Centre Testing International; China Certification & Inspection Group; Asia Quality Control; V-Trust; TUV SUD; TUV Nord; American Bureau of Shipping; Hartford Steam Boiler; Larsen & Toubro; Asia Inspection; China Building Material Test & Certification Group Co. Ltd.; China Special Equipment Inspection And Research Institute; and China Classification Society. The market players in China are entering into mergers and collaborations for expanding and exploring growth opportunities in the market. In March 2018, Bureau Veritas SA completed the acquisition of EMG Corporation (U.S.), a company that provides solutions, for construction assessment, and project management solutions. The former company aimed at expanding and developing infrastructure services in the U.S. through the acquisition. Some of the prominent players operating in the China testing, inspection, and certification market are:
Bureau Veritas SA
DNV GL Group AS
Intertek Group PLC
Lloyd’s Register Group Limited
TUV Rheinland AG Group
Underwriters Laboratories Inc.
Asia Quality Focus
HQTS Group Ltd.
InTouch Services Ltd.
China Inspection Co., Ltd.
Centre Testing International
China Certification & Inspection Group
Asia Quality Control
American Bureau of Shipping
Hartford Steam Boiler
Larsen & Toubro
China Building Material Test & Certification Group Co. Ltd.
China Special Equipment Inspection and Research Institute
China Classification Society
Market size value in 2021
USD 40.2 billion
Revenue forecast in 2028
USD 64.9 billion
CAGR of 7.1% from 2021 to 2028
Base year for estimation
2018 - 2019
2021 - 2028
Revenue in USD billion and CAGR from 2021 to 2028
Revenue forecast, company share, competitive landscape, growth factors and trends
Service, sourcing type, application
Key companies profiled
AsureQuality Limited; Bureau Veritas SA; DEKRA SE; DNV GL Group AS; Intertek Group PLC; Lloyd’s Register Group Limited; SGS S.A; TUV Rheinland AG Group; Underwriters Laboratories Inc.
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This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the China testing, inspection, and certification market report based on service, sourcing type, and application:
Service Outlook (Revenue, USD Billion, 2018 - 2028)
Sourcing Type Outlook (Revenue, USD Billion, 2018 - 2028)
Application Outlook (Revenue, USD Billion, 2018 - 2028)
Consumer Goods & Retail
Personal Care & Beauty Products
Soft-liners & Accessories
Toys & Juvenile Products
Electrical & Electronics
Others (Detergents and Non-woven products)
Agriculture & Food
Seed & Crop
Others (Cider and Cocktails)
Carbonated soft drinks
Others (Milk-based drinks)
Others (Forestry and Food packaging)
Asset Integrity Management Services
Project Life Cycle Services
Finished Product Services
Chemical Feedstocks Services
Others (Lab design and Operation & Commissioning)
Construction Machinery & Equipment Services
Facilities Management & Inspection Services
Others (Supply Chain Services and Quality Health & Safety)
Energy & Power
Fuel Oil & Gases
Others (Geothermal energy, Tidal energy)
Asset Integrity Management Services
Project Life Cycle Services
Others (Technical Staffing and Quality & Safety)
Suppliers Related Services
Production & Products Related Services
Projects Related Services
Others (Logistics and Safety)
Health, Beauty, and Wellness
Biopharmaceutical & Pharmaceutical Services
Others (Training and Staffing)
Inspection & Sampling Service
Metallurgy & Process Design
Production & Plant Services
Project Risk Assessment & Mitigation
Oil & Gas and Petroleum
Biofuels & Feedstock
Asset Integrity Management Services
Project Life Cycle Services
Others (Functional safety services)
Product Conformity Assessment
Others (Road Safety Traffic, E-government, and Technical Verification Programs)
Electrical Systems & Components
Electric Vehicles, Hybrid Electric Vehicles, and Battery Systems
Fuels, Fluids, and Lubricants
Interior and Exterior Materials and Components
Vehicle Inspection Services (VIS)
Others (Aftermarket distribution)
Aerospace & Defense
Services for Airports
Services for Aviation
Services for Aerospace
Marine Fuel Systems & Component Services
Ship Classification Services
Marine Materials & Equipment Services
Others (Cargo, Crane, and Vessel)
Rail Testing Services
Rail Inspection Services
Rail Certification Services
Others (Lab Testing and Supplier Accreditation)
Supply Chain & Logistics
Packaging & Handling
Others (Audits, Certification, and Training)
b. The china testing inspection and certification market size was estimated at USD 36.51 billion in 2020 and is expected to reach USD 40.2 billion in 2021.
b. The china testing inspection and certification market is expected to grow at a compound annual growth rate of 7.1% from 2021 to 2028 to reach USD 64.9 billion by 2028.
b. Testing dominated the china TIC market with a share of 73.9% in 2020. This is attributable to owing to the demand for such services in various industry verticals.
b. Some key players operating in the china TIC market include AsureQuality Limited; Bureau Veritas SA; DEKRA SE; DNV GL Group AS; Intertek Group PLC; Lloyd’s Register Group Limited; SGS S.A; TUV Rheinland AG Group; Underwriters Laboratories Inc.
b. Key factors that are driving the china testing inspection and certification market growth include the increasing number of government investments that are focused on the growth of the transportation and energy sectors, as well as the construction industry.
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