Automotive Dyno Market Size - By Type, By Testing Mode, By Vehicle, By End Use, Channel, Analysis, Share, Growth Forecast, 2025 - 2034

Automotive Dyno Market Size

The global automotive dyno market was valued at USD 1.3 billion in 2024 and is projected to grow at a CAGR of 5.1% between 2025 and 2034. The growing interest in electric and hybrid vehicles (EVs and HEVs) is remarkably increasing the growth rate of the automotive dynamometer market. With regards to these eco-friendly vehicles, there is a great need for modern test systems to assess the specific configurations of their powertrains.
 

Electric test dynamometers assess the performance of electric motors, batteries, and their energy consumption, while their hybrid counterparts incorporate additional systems for testing combustion engines as well as electric drives. For example, according to the International Energy Agency (IEA), about 14 million new electric cars were registered around the world in 2023, bringing the total to nearly 40 million units on the road. The sales of electric vehicles in 2023 were 3.5 million more than in 2022, which is a 35% increase year on year.

This rising demand for electric and hybrid vehicles creates the need to develop new testing procedures in dynamometry, increasing dynamometer technology’s accuracy and functionality. Furthermore, more and more restrictive emission and efficiency regulations make it necessary for auto manufacturers to use these modern systems, resulting in additional growth.
 

Furthermore, the rise in the automotive dyno market is being caused by emission regulations on a global scale. As countries ramp up their protection of the environment, automobile producers are required to thoroughly test their cars for emissions, functionality, and fuel consumption. This is where the relevant class of instruments known as dynamometers comes into play – they conduct artificial driving simulations to quantify the emissions generated during a vehicle’s operation.
 

As Euro 6/7 standards in Europe, U.S. EPA restrictions, and similar ones in Asia are created, more manufacturers are shifting to modern efficient dynos. Stricter tests on electric vehicles, as well as hybrid ones, require the innovation of new types of dynamometers, which leads to a further increase in the market size that’s available.
 

Automotive Dyno Market Trends

The engineering type known as automotive has advanced significantly over the years alongside general engineering due to the era of technology. The introduction of EV dynos, engine simulation systems, and more advanced diagnostics have provided customers with fine-tuned precise systems that are more practical and scalable. The demand for specific types of dynamometers that are able to reproduce real-life road driving situations has increased due to the surge in complexity in modern automobiles, especially hybrid and electric-powered automobiles.
 

Also, the elevation of automation in these tests has proven effective towards decreasing human error, making them cheaper and faster. The growing trend of autonomous vehicle testing is claimed to be the main reason behind the advanced systems companies are looking after for development. These technologies not only manage to enhance the precision of the tests but also help the industry to maintain their focus on protecting the environment, which generates a higher demand for advanced systems in the testing field in the automotive industry as a whole.
 

For example, in April 2024 AB Dynamics bought Venshure Test Services (VTS), based in Michigan, a company providing dynamometer-oriented testing services meant for the automotive industry, with an emphasis on the electric vehicle (EV) market. This acquisition, with a maximum worth of USD 30 million, is comprised of an initial cash payment of USD 15 million, with the remaining payments being contingent on performance criteria for a further two-year period. The acquisition increases the testing capabilities of AB Dynamics in the US and enables the company to provide better services to OEMs and automotive testing companies in the U.S.
 

Due to the large first investment needed for automotive dynos, there is a stiff market entry barrier. The costs of this capital-intensive equipment are beyond the reach of most small or medium-sized workshops and automakers, particularly within emerging markets.
 

Advanced dynamometers are associated with high costs of installation, maintenance, and even training, which can deter many potential adopters and negatively affect market penetration. This situation is especially pertinent to markets shifting towards electric vehicles, where conventional automotive dynos are ineffective and costly EV-specific dynos are mandatory. As a result, the steep initial investment makes adoption slower, especially in those regions where car development and research budgets are low.
 

Automotive Dyno Market Analysis

Based on type, the market is segmented into engine dynamometers, chassis dynamometers, and transmission dynamometers. In 2024, the engine dynamometers segment accounted for over 45% of the automotive dyno market share and is expected to exceed USD 950 million by 2034.
 

• Due to the significance of the internal combustion engine (ICE) test applications, the market is mostly dominated by the engine dynamometers.
   
• They provide more efficiency and accuracy in the parameters of the combustion engine's output for torque, power, and even fuel consumption performance. This accuracy is vital for determining emission levels that will be harmonized with global automotive regulations and enhancing fuel consumption.
   
• The segment's high market share is further driven by the continuous production of ICE vehicles, particularly in regions where the shift to electric vehicles (EVs) is gradual. Engine Dynamometers can also be considered for the R&D of hybrid powertrains, maintaining their relevance as the industry proceeds towards electrification.

Based on the vehicle, the automotive dyno market is divided into passenger vehicles and commercial vehicles. The passenger vehicles segment held around 69% of the market share in 2024.
 

• In the market, the passenger vehicles segment has the highest market share, a position it enjoys for various important reasons. First, the international market of passenger cars is expanding, which increases the need for dynamically operated dyno testing equipment, as such vehicles must be prescreened for performance, safety, and emission regulations.
   
• Second, the developing stratospheric consumer requirements for high-performance cars in North America, Europe, and Asia is a major point of concern that requires advanced performance testing tools to be developed. Besides, the tightening norms on fuel economy and emissions to be controlled further increases the market for angle-controlled dynamometer testing.
   

Also, the increasing popularity of electric vehicles (EVs) and hybrid cars also require rigorous powertrain testing, and these cars will continue to be the majority of passenger vehicles in the future.
 

In 2024, the Asia Pacific region accounted for a market share of over 40% and is expected to exceed USD 900 million by 2034. China leads the automotive dyno market in the Asia Pacific region and is expected to exceed USD 350 million by 2034.
 

• Factors such as robust automotive production output, growing electric vehicle markets, strict Chinese government emissions policies, and high levels of automotive innovation development and electric vehicle innovation have positioned China as a leading automotive dyno market.
   
• All these innovations and investments put forth by local and global automobile manufacturers require dyno testing equipment, and as the investment into Research and Development shifts abroad, the necessity for advanced engine dynamometers to test engines and optimize vehicles increases.
   
• The North American automotive dyno market is predicted to grow steadily due to the region's automotive OEM and aftermarket sectors. The market is the largest in the U.S. as a result of their considerable automotive industry production and their high compliance standards for vehicle emission and fuel economy.
   
• More sophisticated spending in the automotive market, particularly EVs, intensifies the need for dynamometers to evaluate new powertrains and performance systems for automobiles. Other dyno manufacturers, for example, Mustang Dynamometer and Power Test, also accelerate the market development in this region.
   
• The automotive dyno market in Europe is boosted by the automotive industries of Germany, France, and Italy. The demanding emissions and fuel economy improvements and the increased focus on EVs primarily cause the dynamometer market to grow.
   
• One of the world's automobile manufacturing giants, Germany, is one of the reasons why this market grows. Moreover, increased performance testing of passenger cars and commercial vehicles increases demand in this region. The adoption of advanced technologies, particularly for hybrid and electric power trains, further enhances the market's potential.
   
• The automotive dyno equipment market is likely to expand steadily further in the MEA as well as Latin American regions. In MEA, the growing demand for dyno testing is driven by increasing vehicle production and growth of the automotive industry in Saudi Arabia and South Africa.
   
• In Latin America, growth is being led by the automotive markets in Brazil and Mexico, which require more stringent emission regulations and, as a result, require improved testing solutions. Also, the growing focus on performance enhancement and adoption of electric vehicles provides significant impetus to market growth.
   

Automotive Dyno Company Market Share

AVL List GmbH, HORIBA Automotive, and MAHA Maschinenbau Haldenwang GmbH collectively held a substantial market share of over 12% in the automotive dyno industry in 2024.
 

• AVL List GmbH is a market leader in the development of sophisticated hydraulic dynamometers for hybrid and electrical vehicles. The company employs AI and simulation technologies for enhanced testing, which increases efficiency and improves environmental sustainability.
   
• Cooperation with automotive manufacturers and other academic institutions provides advantages in product customization. AVL also uses modular systems to address the needs of a wide range of customers, allowing more flexible and economical solutions in the transforming automotive market.
   
• Emissions testing, as well as e-mobility requirements, are met by innovative solutions from HORIBA Automotive. Their automotive dynamometers come with data capturing and remote monitoring features.
   
• The firm puts a strong emphasis on research and development pertaining to electrification and autonomous driving vehicle testing, making sure that international standards are met. Such initiatives, together with the collaboration of automobile manufacturers and government agencies, help improve HORIBA’s products and services for better leadership in environmental and performance testing solutions.
   
• MAHA develops powerful yet simple-to-use dynamometers for general vehicle testing. The firm focuses on diversity by offering devices with emission and brake testing systems. MAHA serves the broad spectrum from small workshops to major OEMs. This is part of the company policy that is also based on coping with changing regulatory requirements, strong customer care and trust, and sustaining a good position in the market.
   

Automotive Dyno Market Companies

Major players operating in the automotive dyno industry are:

• AVL List GmbH
• Dynojet Research
• HORIBA Automotive
• Magtrol Inc.
• MAHA Maschinenbau Haldenwang GmbH
• Meidensha Corporation
• Mustang Dynamometer
• Power Test
• Rototest
• SuperFlow
   

The automotive dyno market is extremely competitive, as there are global leaders and niche regional providers. Large international companies enjoy a strong market presence because they have the resources and technological capability to address the testing needs of major OEMs and Tier 1 suppliers. These firms normally sign end-to-end testing services for several years and build dedicated facilities with the help of automotive manufacturers, ensuring a steady cash flow.
 

To improve competition, several firms are giving priority to their customer support and operational effectiveness. This includes providing remote monitoring and diagnostic tools, predictive maintenance, and even training for users. In addition, firms are investing a lot of resources into marketing to position their brand as a trusted and innovative automotive testing partner in this technical market.
 

Automotive Dyno Industry News

• In August 2024, TOYO Corporation acquired Rototest, one of the leading European developers of hub-coupled powertrain dynamometers. As a result, TOYO and Rototest have made a significant corporate leap, in which Rototest can operate as a subsidiary under TOYO’s umbrella, which is situated in Rönninge, Sweden. Rototest allows its buyers in the EU to benefit from TOYO’s extensive research in order to significantly improve the products Rototest sells. The combination of Rototest's products with the existing TOYO's systems will create an integrated testing system that is more sophisticated and reliable.
   
• In May 2023, Sakor Technologies was chosen as the manufacturer supplier for Nexteer Automotive, a top player in steering and driveline systems. This partnership intends to improve the skills of Nexteer in testing its automotive technologies. The dynamometer supplied by Sakor is dedicated to the testing of components for electric and hybrid vehicles, which allows the Nexteer products to be tested and evaluated for performance and efficiency.
   

The automotive dyno market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) from 2021 to 2034, for the following segments:

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Market, By Type

• Engine dynamometers
• Chassis dynamometers
• Transmission dynamometers

Market, By Testing Mode

• In-house testing
• Outsourced testing

Market, By Vehicle

• Passenger vehicles 
  • Hatchback
  • Sedan
  • SUV
• Commercial vehicles 
  • Light Commercial Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)

Market, By End Use

• Automotive OEMs
• Aftermarket service providers
• Motorsport teams

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa