Summary of Key Points
During the 14th Five-Year Plan period, the inspection and testing industry has achieved a leapfrog development from "quantitative expansion" to "quality improvement": revenue exceeded 530 billion yuan (a 47.89% increase compared to the end of the 13th Five-Year Plan, outpacing GDP growth by 12 percentage points), although the growth rate in the number of institutions was only one-sixth that of the 13th Five-Year Plan. Emerging sectors such as electronics and electrical appliances, and new energy have risen rapidly, while traditional areas like motor vehicle testing have declined. There has been a significant improvement in technical content and talent structure; however, shortcomings such as lack of credibility and weak international influence still exist. The 15th Five-Year Plan will focus on four key areas to drive industry upgrading.
I. Achievements of the 14th Five-Year Plan: Revenue Growth by Two Levels, Based on Quality Rather than Quantity
The growth logic of the inspection and testing industry has changed over the past five years—rather than opening more outlets, the focus is on making each outlet more profitable.
- Rapid Revenue Growth: The total industry revenue increased from approximately 360 billion yuan at the end of the 13th Five-Year Plan (with a 47.89% growth rate) to exceed 500 billion yuan and then 530 billion yuan by 2025, growing 12 percentage points faster than GDP during the same period. This means the industry has moved two steps forward for every one step taken by other sectors.
- Quality Improvement: The annual average growth rate in the number of institutions was only 2.12% (compared to around 12.7% in the 13th Five-Year Plan), but the average revenue per institution increased by 30%, with the income from each inspection report rising from 632 yuan to 929 yuan. In other words, if ten institutions used to earn 100 yuan together, now eight institutions can earn the same amount, indicating a higher value per report.
II. Major Structural Changes: Emerging Segments Outperform, Traditional Areas Decline
The industry is undergoing a transformation, with high-value-added sectors becoming new drivers of growth:
- Emerging Sector Growth: Inspection services related to electronics and electrical appliances, software and information technology, and power have seen annual average growth rates in both the number of institutions and revenue exceeding 13%, contributing 4.5 percentage points to total industry revenue. For example, demand for battery testing in new energy vehicles and performance testing of chips is increasing, leading to higher profits for related institutions.
- Traditional Sector Decline: The number of institutions in traditional areas such as motor vehicle testing and general industrial products (like clothing and toys) has decreased, with a 4.55 percentage point drop in their revenue share. The reason is simple: these sectors are highly competitive, have thin margins, and slow demand growth, forcing many institutions to transform or exit the market.
In short, industry funds are shifting from traditional businesses to more promising new areas.
III. Dual Upgrades in Technology and Talent: From Quality Control to Innovation Support
Inspection and testing is no longer just about identifying issues after the fact; it's about facilitating innovation:
- Technological Advancement: The proportion of high-tech companies in this industry is 14 times the national average, and the proportion of specialized, innovative, and sophisticated enterprises is 11 times the average. By 2025, there will be over 210,000 valid patents (including 94,000 invention patents), more than doubling from the end of the 13th Five-Year Plan, with research funding increasing by 127%. For instance, chip testing institutions can not only assess chip quality but also help companies optimize their designs.
- Professional Talent: The proportion of employees with a bachelor's degree or higher is 55.42%, and those with intermediate or higher professional titles account for 35.92%. More highly educated and experienced professionals are entering the industry, providing specialized solutions rather than just conducting basic tests.
IV. Shortcomings to Be Addressed: Four Key Areas for the 15th Five-Year Plan
There are still three major challenges the industry needs to overcome:
1. Lack of Credibility: Some institutions issue false reports to profit, damaging consumer and corporate trust in the industry.
2. Insufficient Technical Support: The industry's testing capabilities for emerging sectors such as integrated circuits and humanoid robots are not yet adequate.
3. Weak International Influence: Chinese inspection reports are not widely recognized abroad, requiring companies to repeat tests when exporting products.
To address these issues, the 15th Five-Year Plan will focus on the following four areas:
- Credibility: Establishing smart regulatory platforms to prevent false reports from circulating.
- Technical Support: Investing in testing infrastructure for emerging sectors (such as chips and biomedicine).
- International Influence: Promoting mutual recognition of inspection reports with countries along the Belt and Road Initiative, eliminating the need for duplicate tests.
- Brand Competitiveness: Cultivating a few leading inspection institutions with international prestige, similar to SGS.
The ultimate goal is to transform inspection and testing from a post-event quality assurance mechanism into a proactive innovation support system, working closely with the entire supply chain.
V. Changes That Affect Everyday Life
These developments have a direct impact on our lives:
- When buying new energy vehicles, battery test reports will be more reliable.
- When shopping online for clothing, quality inspection reports will provide greater confidence.
- Companies exporting products will no longer need to spend extra on unnecessary retests.
In the future, we can expect more professional, credible, and internationally recognized inspection services that protect consumers and support corporate innovation.
Overall, the inspection and testing industry is moving from extensive growth to more focused and sophisticated development, becoming more valuable, professional, and influential.