In 2024, the Automobile Testing Services Market was estimated at US$ 18.52 billion; it is predicted to rise to US$ 18.52 billion, reflecting a compound annual growth rate (CAGR) of 7.76% from 2025 to 2033, 35.80 billion will be reached by 2033.
One major leading indicator of expected demand is investment in physical testing facilities. After Tesla’s securities fraud lawsuit over self-driving technology, companies are putting hundreds of millions toward building next-generation infrastructure. UTAC’s Centennial Building in Michigan, for example, has been converted into an 85,000 square foot cutting-edge electrification testing facility. A strong 5 megawatt (MW) electrical supply now enables this enhanced UTAC facility to handle high-demand electric vehicle (EV) testing.
A fresh 66,000-square-foot Impact Laboratory project launched in late 2024 in Ohio aims at sophisticated safety technology testing inside the automotive testing services industry. Toyota is also making significant expansions at its Arizona Proving Grounds, which include building a new 1.7-mile North Straight for coast-down testing, expected Fall 2025 marks the time it should be done.
Furthermore, at Toyota’s Arizona plant, a resurfacing work for a 17-acre Vehicle Dynamics Area (VDA) is now underway and is expected to be finished in Further investments are being made by Schaeffler Group, who is building a new 130,000-square-foot automotive manufacturing factory in Dover, Ohio, set to finish in 2026. Focus on electric powertrain technology in the third quarter of 2025. The academic world is not behind; the University of Michigan is building a new 25,000-square-foot EV battery lab. Early in 2025, this $60 million project got approval.
One major engine for expansion in the Automobile Testing Services Market is the rise of autonomous vehicles (AVs). Guaranteeing these systems’ safety calls for an unusually high number of test miles. With 9.06 million miles travelled in autonomous mode during the 2023 reporting period, AVs in California reached an amazing landmark, an increase of 3.3 million miles compared to last year. Of this total, a stunning 3,267,792 miles were travelled completely driverless.
