China Testing, Inspection, and Certification (TIC) Market Analysis Report By Sourcing Type, By Service Type, By Application (Transportation, Healthcare, Consumer Goods & Retail), And Segment Forecasts, 2018 - 2025

Industry Insights

The China testing, inspection, and certification (TIC) market was valued at USD 27.03 billion in 2017. It is anticipated to progress at a CAGR of 9.1% during the forecast period. Increasing foreign investments and favorable government initiatives are expected to drive the market. Moreover, increasing adoption and development of alternative fuel vehicles such as electric vehicles and hybrid vehicles are anticipated to increase testing and inspection activities for such vehicles. This will, thereby, provide a fillip to the market during the forecast period.

The market is expected to tread along a healthy growth track in China owing to increasing number of government investments that are focused on the growth of the transportation and energy sectors as well as the construction industry. Furthermore, rise in outsourcing of testing, inspection, and certification services by prominent companies operating in the manufacturing, automotive, and consumer goods sectors is projected to further propel the market.

The government has eased the entry of foreign players by uplifting barriers for international companies offering TIC solutions in the China market, which is being dominated by domestic players. Moreover, the market is likely to experience a substantial growth rate during the forecast period owing to investments made by international players in China.

Moreover, burgeoning popularity of testing and certification services for accelerating and developing smart technologies such as smart cities and smart vehicles is anticipated to support the growth of the market. Increasing government alliances, growing implementation of new standards and regulations, and soaring need for third-party inspection services are some of the key growth stimulants for the market over the forecast period.

Services Type Insights

In terms of services, the market has been segmented into testing, inspection, and certification. The testing segment is expected to hold the largest market share over the forecast period owing to strong demand for such services in various industry verticals such as manufacturing, automotive, and construction for quality and safety analysis of materials, components, chemicals, and electronic & consumer products.

The inspection segment is expected to exhibit the highest CAGR of over 10.0% during the same period. Increasing number of construction and infrastructure development projects is further expected to spur the growth of the segment in the market.

Sourcing Type Insights

Based on sourcing, the China TIC market has been segmented into in-house and outsourced. The in-house sourcing segment is expected to hold the largest market share throughout the forecast period. Previously, most Chinese manufacturers preferred in-house inspection as it enabled saving costs involved in third-party inspection of a company.

However, the cost of in-house inspection, testing, and certification of products increased due to rise in the number of regulations and standards related to TIC and therefore, several players in the industry started outsourcing these services to third-party service providers. As a result, the outsourced segment is anticipated to post the highest CAGR during the forecast period.

Application Insights

On the basis of application, the market has been categorized into consumer goods & retail, agriculture & food, chemicals, infrastructure, energy & power, manufacturing, healthcare, mining, oil & gas and petroleum, public sector, transportation, supply chain & logistics, and others.

The growth of self-driving vehicles, electric vehicles, and hybrid vehicles is expected to drive the market in major Chinese cities such as Guangzhou and Shanghai. The growth of the e-commerce market in China is expected to fuel the demand for testing, inspection, and certification in the consumer goods and retail segment owing to increase in inspection and verification needs of products prior to their delivery to customers.

The 13^th Five Year Plan of China states the development of green transportation solutions such as electric and hybrid vehicles for advancements of country’s transportation sector. Furthermore, the plan elaborates 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.

China TIC Market Share Insights

Some of the key players in the market are 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 acquisition.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the China TIC market report based on services type, sourcing type, and application:

• Services Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Testing

  • Inspection

  • Certification

• Sourcing Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • In-house

  • Outsourced

• Application Outlook (Revenue, USD Billion, 2014 - 2025)

  • 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 & Defense

      • 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