The market is expected to grow by 7.1 percent annually over the next seven years. According to a report by Research and Markets, the burgeoning Chinese middle-class is leading to greater focus on quality and safety of consumer goods including electrical and electronic appliances.
A further factor behind the growth projection is an increase in outsourcing of testing, inspection, and certification services by major companies operating in the manufacturing, automotive, and consumer goods application areas in China.
It is also being helped by increased government investment in the transportation and energy sectors as well as the construction industry.
According to the report, while domestic TIC providers still dominate the market in several Chinese provinces government liberalization policies have led to the lifting of barriers for international TIC providers to enter and operate in the mainland marketplace.
The report also noted that whilst in the past most companies in China conducted their testing, inspection, and certification operations in-house this is changing.
This is in large part due to increasing international acceptance of the China Compulsory Certification (CCC), which has resulted in a greater emphasis on the need for strict regulatory standards and certifications in the country. As a result many more China-based companies are now choosing to outsource their TIC activities, also because of the cost benefits.
Moreover, the growth in TIC outsourcing is expected to further drive the growth of the market over the forecast period as international players take advantage of the increased accessibility of the Chinese domestic market.