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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| 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.
| 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%.
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| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| United States | 2.60% |
| France | 4.60% |
| India | 3.70% |
| China | 3.40% |
| Japan | 2.20% |
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.
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.
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.
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.
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.
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
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The automotive homologation service industry accounts for a USD 1,451.24 million valuation in 2024.
Market players are expecting the automotive homologation service market to increase at a CAGR of 3.2% over the next 10 years.
The market revenue of automotive homologation services has the potential to bypass USD 1,988.66 million by 2034.
Components and systems homologation is a frequently purchased service by OEMs.
France is expected to offer lucrative opportunities to key vendors.
TÜV SÜD Group, Intertek Group plc, and DEKRA SE are some key participants in the automotive homologation service industry.
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
Automotive
June 2023
REP-GB-283
224 pages
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Automotive Homologation Service Market
