Automotive Homologation Service Market Outlook 2024 to 2034

After undertaking an in-depth market analysis, FMI recently revised its report on the automotive homologation service market. This market is set to reach USD 1,451.24 million in 2024.

In upcoming years, continuous demand for diverse automotive homologation services among automakers is projected to push the sales at a 3.2% CAGR through 2034. By 2034-end, the market is on track to touch USD 1,988.66 million, as per latest predictions.

Attributes Key Insights
Automotive Homologation Service Market Size (2024E) USD 1,451.24 million
Market Valuation (2034F) USD 1,988.66 million
Value-based CAGR (2024 to 2034) 3.2%

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Automotive Homologation Service Market Trend Analysis

  • Different automotive laws within various geographies are encouraging the sales of automotive homologation services. For instance, in the EU, a new vehicle type equipped with automated driving functions is first supposed to undergo extensive road tests for validation.
  • Software is becoming a key component of new vehicles, which has now made homologation services compulsory for certain software updates.
  • Growing demand for sustainable transportation is creating demand for homologation of electric vehicles (EVs) and their components.
  • Creation of stricter laws and standards by government and regulatory bodies to meet the end-user needs of the automotive industry.

Category-wise Automotive Homologation Service Market Insights

Digitization of In-car Technologies is Fueling Demand for Automotive Homologation Services for Components and Services

Leading Service Type Components and Systems Homologation
Value Share (2024) 54.20%

Demand for components and systems homologation services is expected to substantiate a 54.20% value share in 2024. Over recent years, the automotive industry has been switching to the digitalization of in-built car technologies, which are indispensable for vehicle automation, convenient commuting, and connectivity.

Frequent upgradation of components and systems due to upgradation in technology is raising demand for homologation services. Therefore, by service type, the systems and components homologation segment is dominating the global market with a massive share.

Domestic Homologation Services Continue to be a Dominant Application Segment

Leading Application Domestic Homologation
Value Share (2024) 68.40%

The use of homologation services is increasing domestically as car manufacturers naturally look for cost-saving options. Getting homologation services in their homeland gives manufacturers a competitive edge over their peers who don’t have the benefit of relatively affordably-priced homologation services. The domestic homologation segment, by 2024 end, is predicted to account for 68.40%.

Nikhil Kaitwade
Nikhil Kaitwade

Principal Consultant

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Global Automotive Homologation Service Market Dynamics by Country

Countries Forecast CAGR (2024 to 2034)
United States 2.60%
France 4.60%
India 3.70%
China 3.40%
Japan 2.20%

Demand for Homologation Testing to Surge in the United States as Transportation Norms Become Stricter

Strict norms in the United States, as set down by the National Traffic and Motor Vehicle Safety Act, Clean Air Act, Motor Vehicle Information and Cost Saving Improvement Act, and Americans with Disabilities Act, are also enhancing the scope of automotive homologation services in the United States.

Several key players in the United States offer to help car brands and OEMs with their extensive automotive homologation services. These services help car brands to obtain approvals for their systems, vehicles, and components efficiently. These homologation service providers are up-to-date with the changes in automotive regulations and benefit car companies with a one-stop approval solution.

The growth of automotive homologation services market in the United States is set to rise at a CAGR of 2.6% through 2034.

Development of Sophisticated Vehicles is Surging Demand for Automotive Homologation Services in Japan

The use of new technologies, such as wireless systems and components, is making vehicles more sophisticated. Meanwhile, the production base of vehicles is becoming globalized.

In recent times, aspects like the reliability and safety of automotive parts and environmental protection are also gaining significance. Car manufacturers and suppliers are thus meeting new challenges in reliability and quality and ensuring connectivity within the car and surrounding infrastructure by using automotive homologation services.

Key players in Japan are supporting full services for automotive systems and components to confirm that they adhere to applicable requirements in global markets. A one-stop localized solution is also available for export and domestic markets. Additionally, key players are offering environmental testing services and EMC for electronic mechanisms and subassemblies planned to be fitted on vehicles.

The CAGR assumed by automotive homologation service providers in Japan is predicted to be 2.2% through 2034.

Rapidly Growing Heavy Vehicle Category in India is Raising Sales of Automotive Homologation Services

Key providers of automotive homologation services in India are expected to enjoy a CAGR of 3.70% through 2034. India enjoys worldwide recognition as an important player in the automotive industry. Numerous global players have already made moves to gain a footprint in India.

An example of this is the Automotive Research Association of India (ARAI), which offers systematic homologation and certification services for an exhaustive range of automotive systems, vehicles, and their components.

India has a reputation as a leading tractor manufacturer worldwide. Not only this but other heavy vehicle segments like buses and heavy trucks are extensively produced in India. Thus, giving it a substantial position in the global market. Surging production of new vehicles in India is creating a solid demand for automotive homologation services in India.

Costly Fines for Non-compliance of Automotive Motivating Sales of Homologation Services in France

Sales of automotive homologation services in France are set to expand at a CAGR of 4.60% over the next 10 years. The country is expected to enjoy relatively higher growth than its counterparts, according to the latest market predictions.

Components and vehicle manufacturers are purchasing homologation services to gain entry into target markets for greater earnings. These services also allow rapid delivery of products and prevent costly fines and penalties paid for non-compliance as well as costly recalls. Another crucial factor that is encouraging automotive manufacturers for these services is consumer confidence regarding vehicle safety.

Several Player are Offering their Services to Automotive Manufacturers Looking for Lucrative Opportunities in China

China is to observe incremental growth of 3.40% over this decade. Expansion of the market in China is driven by rising local as well as international manufacturers of motorcycles, trucks, vehicles, and the relevant safety components. These players are required to be CCC-certified to sell their products in the competitive and lucrative market in China.

CCC, which is China Compulsory Certification, is a hallmark of the safety and quality of motor vehicles for customers in China. Several key players are thus offering their services to assist manufacturers attain as well as renew mandatory or voluntary certification for China. Taking the help of these players helps automotive manufacturers to access the enormous market in this country.

Competitive Landscape

Key players in the market are vigorously working to construct a solid network of partnerships with laboratories adhering to ISO/IEC 17025. The key motive behind this is to increase the global footprint and to ensure complete accuracy in tests held for vehicle checks.

Top vendors are offering customers their expertise in automotive certification and engineering, practically and quickly. Key players are also strategizing to boost their presence through joint ventures, collaborations, and partnerships with other domestic players.

One such example of successful collaboration is of Vincotte with Kiwa, which took place in 2022. The latter is a global testing, certification, and inspection firm that gives access to modern laboratories and expertise. This collaboration made the company’s focus on emerging markets like battery regulations and hydrogen storage systems stronger.

Industry participants are uniting to satisfy the constantly evolving demands of the automotive market, which is always under pressure to provide flexible solutions to revamp the market in a shorter period. This is increasing the competitiveness of the automotive market and raising prospects for automotive homologation service providers.

Recent Happenings in the Automotive Homologation Service Market

  • In June 2023, TÜV Rheinland, which is a world-leading provider of testing and certification services, and Centro Tecnológico Randon (CTR), situated in southern Brazil, have forged a strategic partnership for testing, homologation, and type approval of automotive components and vehicles. CTR is thought to be one of the exhaustive open technological centers for mobility in South America.
  • In April 2023, Fisker Inc. which is driven to develop more sustainable and emotional electric vehicles, officially stated that Fisker Ocean has completed and met all applicable FMVSS testing. The company chose an internationally acclaimed agency to carry out the testing.
  • Intertek, one of the leading quality assurance providers, revealed the expansion of capabilities and services at its Transportation Technologies lab in Devon in May 2022. Expansion of this unit is expected to meet the growing demand for safe and reliable testing for electric vehicle supply equipment (EVSE) technologies and advanced electric vehicles (EV).

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Key Coverage in the Global Automotive Homologation Service Market Research Report

  • Adjacent Study of Vehicle Type Certification/Approval Market, Automotive Homologation Testing Market, and Vehicle Regulatory Compliance Market,
  • Opportunity Analysis of the Automotive Compliance Testing Market and Automotive Certification Services Market
  • Comprehensive Category-wise Analysis of Automotive Homologation Service Market

Top Companies in the Automotive Homologation Service Market

  • TÜV SÜD Group
  • Intertek Group plc
  • DEKRA SE
  • Applus Services SA
  • SGS S.A.
  • Bureau Veritas
  • Formel D Group
  • The Smithers Group Inc.
  • The Automotive Research Association of India
  • AVL List GmbH
  • TÜV Rheinland
  • UL Solutions Inc.
  • UTAC
  • Others

Automotive Homologation Service Market by Categories

By Various Service Types Offered by Automotive Homologation Service Players:

  • Full Vehicle Homologation
  • Components and Systems Homologation
    • Display Systems
    • Steering Control Systems
    • Wireless and Communication Systems
    • Brake Systems
    • Engine and Transmission Systems
    • Seating Systems
    • Safety and Crash Protection Systems
    • Door Components and Systems
    • Windshield Systems
    • Fuel Systems
    • Roofing Systems
    • Interior Materials and Systems
    • Tires and Tire Pressure Monitoring System
    • Other Components

By Various Applications for Automotive Homologation Services:

  • Domestic Homologation
  • Export Oriented Homologation

By Different Vehicle Types that Require Automotive Homologation Services:

  • Motorcycle
  • Passenger Vehicles
  • Commercial Vehicles
  • Trailers
  • Agricultural Equipment

By Different Regional Markets for Automotive Homologation Services:

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America

Frequently Asked Questions

What is the Market Valuation of Automotive Homologation Service Market as of 2024?

The automotive homologation service industry accounts for a USD 1,451.24 million valuation in 2024.

What is the Projected Adoption Rate of Automotive Homologation Service Between 2024 and 2034?

Market players are expecting the automotive homologation service market to increase at a CAGR of 3.2% over the next 10 years.

How Much Revenue the Automotive Homologation Service Industry is Expected to Generate by 2034?

The market revenue of automotive homologation services has the potential to bypass USD 1,988.66 million by 2034.

Which Service Type is Frequently Opted for by OEMs and Car Brands?

Components and systems homologation is a frequently purchased service by OEMs.

Which Country Promises Significant Growth Opportunities?

France is expected to offer lucrative opportunities to key vendors.

Which Players in the Automotive Homologation Service Industry are Influential?

TÜV SÜD Group, Intertek Group plc, and DEKRA SE are some key participants in the automotive homologation service industry.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
  • 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service Type
    • 5.1. Full Vehicle Homologation
    • 5.2. Components & Systems Homologation
      • 5.2.1. Display Systems
      • 5.2.2. Steering Control Systems
      • 5.2.3. Wireless & Communication Systems
      • 5.2.4. Brake Systems
      • 5.2.5. Engine & Transmission Systems
      • 5.2.6. Seating Systems
      • 5.2.7. Safety & Crash Protection Systems
      • 5.2.8. Door Components & Systems
      • 5.2.9. Windshield Systems
      • 5.2.10. Others
  • 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
    • 6.1. Domestic Homologation
    • 6.2. Export Oriented Homologation
  • 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
    • 7.1. Motorcycle
    • 7.2. Passenger Vehicles
    • 7.3. Commercial Vehicles
    • 7.4. Trailers
    • 7.5. Agricultural Equipment
  • 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
    • 8.1. North America
    • 8.2. Latin America
    • 8.3. Western Europe
    • 8.4. Eastern Europe
    • 8.5. South Asia and Pacific
    • 8.6. East Asia
    • 8.7. Middle East and Africa
  • 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 16. Key Countries Market Analysis
  • 17. Market Structure Analysis
  • 18. Competition Analysis
    • 18.1. TÜV SÜD Group
    • 18.2. Intertek Group plc
    • 18.3. DEKRA SE
    • 18.4. Applus Services SA
    • 18.5. SGS S.A.
    • 18.6. Bureau Veritas
    • 18.7. Formel D Group
    • 18.8. The Smithers Group Inc.
    • 18.9. The Automotive Research Association of India
    • 18.10. AVL List GmbH
    • 18.11. TÜV Rheinland
  • 19. Assumptions & Acronyms Used
  • 20. Research Methodology
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