DEKRA with 11 percent jump in turnover

Focus on digital security bears first fruits:

Despite the massive economic impact of the war in Ukraine and the coronavirus pandemic, DEKRA expects growth of around five percent in the current financial year. The number of employees is set to increase by more than 1,000 (2021: 47,770, 2020: 43,990). In the second year of the pandemic, the expert organization has proven its resilience: Turnover grew by 10.9% in 2021 to more than 3.5 billion euros. At EUR 226.0 million, the operating result (adjusted EBIT) is at the pre-coronavirus level of 2019. Net profit for 2021 climbed by around 50% or EUR 47.6 million to EUR 141.5 million (previous year: EUR 93.9 million) - and is also more than EUR 20 million higher than the strong 2019 figure. The new CEO Stan Zurkiewicz sees the reasons for the positive development in a volatile environment in DEKRA's strong market position, customer focus, employee commitment and increasing digitalization.  “We have our finger on the pulse of our customers and are concentrating on five high-growth focus areas in which we are developing the digital services of the future,” said the 42-year-old, who took over the baton from long-standing CEO Stefan Kölbl in April. In the context of digitalization, DEKRA is benefiting from completely new security requirements that need to be met - for example in the areas of cyber security and connected mobility. With investments of more than 140 million euros in 2021, DEKRA has laid the foundations for further growth in the area of digitalization and driven forward internationalization, for example in the Asia-Pacific (APAC) region.

• Expert organization increases sales to more than EUR 3.5 billion in 2021
• Adjusted operating result up 15 percent year-on-year at EUR 226 million
• Automotive testing business: entry into three new markets consolidates global market leadership
• Electromobility: patented quick test shows the condition of the traction battery
• Sustainability services offer huge market potential
• DEKRA expects expansion in 2022 despite difficult conditions

The new DEKRA CEO made it clear to journalists in Stuttgart that the global need for safety is changing rapidly. One key reason for this is the increasing interconnectedness of products and systems, along with climate change. While DEKRA will continue to focus intensively on all aspects of human safety, the digital security of personal data and connected systems is also moving to the top of the agenda. “We have sharpened our strategic positioning and expanded our Strategy 2025 to include digital security and sustainability,” said Stan Zurkiewicz. “Both are now part of our DNA.” This is also reflected in the strategic goal of becoming CO₂-neutral by 2025.

The evolution of Strategy 2025 involved key strategic decisions last year. DEKRA will now focus on five core areas that represent significant growth opportunities: “Artificial Intelligence & Data Analytics,” “Future Vehicles and Mobility,” “Remote Services,” “Information and Cyber Security,” and “Sustainability Services.” These areas reflect DEKRA’s broadened understanding of safety. Shortly after launching its AI and Cyber Security hubs, the innovation unit DEKRA DIGITAL—with over 100 employees—achieved double-digit growth rates. “With new digital services and strong customer focus, we will seize all growth opportunities,” said the new DEKRA CEO. “This will position us as a global partner for a safe and sustainable world by our 100th anniversary in 2025.”

A Position of Strength

We are pursuing our goals from a position of strength. In 2021, our equity ratio increased to 33.5%, or nearly one billion euros,” said CFO Wolfgang Linsenmaier. With a growth rate of 17.8% to €221.2 million, the Asia-Pacific (APAC) region showed particularly strong performance. The German market also grew significantly, with revenue increasing by 11.2% to €2,145.7 million. “Germany is and will remain DEKRA’s largest and most important market,” emphasized CEO Stan Zurkiewicz.

This positive trend was also reflected in the individual business areas. Temporary employment, which had suffered during the COVID-19 crisis, rebounded with a 43.2% increase to €438.5 million—the highest percentage gain. Vehicle inspection services also proved resilient, growing by 7.6% to €1,217.7 million, and setting a new record with around 28 million vehicles inspected across 23 countries. Zurkiewicz stated: “We are already the global market leader and are systematically expanding this position.” The goal is to exceed 30 million inspections by 2025. In 2021 alone, DEKRA introduced emissions and vehicle inspections in Chile, Mexico, and Finland.

Secure Connectivity

“The success and acceptance of digitalization depend heavily on secure connectivity,” said CTO Ulrike Hetzel. DEKRA’s cybersecurity approach is built on three pillars: people, products, and processes. This helps clients become more resilient against internal and external threats. For example, DEKRA supports a secure Internet of Things (IoT) by conducting tests and issuing certifications according to the new European standard EN 303 645, which is the foundation for Smart Home cybersecurity. Last year, DEKRA issued the first certificate of this kind to a home appliance manufacturer in China. DEKRA expects around 40% annual growth in the cybersecurity market by 2025.

In the field of Automotive Cyber Security, DEKRA received official status in 2021 from the German Federal Motor Transport Authority as a type approval authority for new international regulations on cybersecurity and software updates. Under UNECE R155 and R156—considered the gold standard in the automotive sector—manufacturers must maintain certified management systems over a vehicle’s entire lifecycle, with audits every three years. DEKRA’s Technology Center in Klettwitz plays a crucial role here, with plans to invest tens of millions of euros in expanding test tracks for automated and connected driving. Leading car manufacturers rely on DEKRA’s cybersecurity services, and the organization expects strong growth in this area, aiming for high double-digit million-euro revenues by 2025.

In industrial cybersecurity, DEKRA achieved a milestone by gaining certification under IEC 62443, a key industrial cybersecurity standard, in the growing Chinese market. In industrial settings, safety revolves around control systems and digital monitoring of machinery. There is increasing global demand for online monitoring services, remote-assisted inspections, and fully remote inspections using robots and drones—especially in dangerous or hard-to-access locations. In 2021, DEKRA secured a multimillion-euro contract for robot-based remote inspections from one of the world’s largest chemical companies.

Shaping the AI Ecosystem

Trust in safety is essential when it comes to Artificial Intelligence (AI). “AI is evolving rapidly, and our goal is to help shape the AI ecosystem of the future as a neutral third party,” said Ulrike Hetzel. DEKRA is actively involved in translating legal regulations into technical standards and norms. In 2021, DEKRA invested in Spearhead, a Swiss company that helps car insurers and fleet operators digitize claims processing using AI. DEKRA expects the digital claims market to grow rapidly, with such solutions to be used in over 50% of all claims by 2025.

Expansion of Sustainability Services

In the sustainability growth segment, DEKRA sees strong potential for comprehensive solutions addressing the energy transition, ESG standards, and the circular economy. These include services for analyzing and reducing the carbon footprint of companies or products. In 2021, DEKRA audited Lenovo’s CO₂ offset service for customers, and since then has won additional carbon footprint projects. Promising markets also include sustainability audits, management systems, and product testing under modern environmental standards.

DEKRA has also enhanced its e-mobility portfolio. A new, patented battery quick test—validated by RWTH Aachen and car manufacturers—can reliably assess the health of drive batteries. This innovation helps answer the key question for used electric vehicles: What is the battery’s condition and how much capacity remains? This is essential for vehicle valuation. Initially, the service targets major clients such as leasing companies and dealership chains.

Another major success was achieved in California, a global pioneer in mobility innovation. DEKRA was commissioned by the California Energy Commission to build a Vehicle-Grid Innovation Laboratory. “This lab will improve charging infrastructure interoperability and help implement secure vehicle-to-grid solutions,” said CTO Hetzel. Located in the San Francisco Bay Area, the lab will serve as a twin to DEKRA’s high-tech facility in Arnhem, Netherlands, and will begin operations in summer 2022.

In addition to e-mobility, DEKRA plays a key role in solar product testing, particularly in China. It is also promoting safe hydrogen technologies as a member of Hydrogen Europe and encourages sustainable waste management with its new Zero-Waste Seal. Given its strong market position and global momentum toward sustainable development, DEKRA expects double-digit growth rates in its sustainability services.

Internally, DEKRA is also making sustainability a success: In April 2022, EcoVadis—the leading sustainability rating platform for global supply chains—awarded DEKRA platinum status for the second year in a row. This places the organization among the top 1% of comparable companies worldwide. The rating covers environment, labor & human rights, ethics, and sustainable procurement.

Outlook

DEKRA started 2022 on a strong note: In the first quarter, revenue was nearly ten percent higher than in the previous year. “The devastating war in Ukraine will make it difficult for us to maintain this momentum,” said Stan Zurkiewicz. According to the DEKRA CEO, growth in Germany, Europe, and globally is expected to decline, as many industries are facing disruptions in their supply chains and shortages of raw materials and intermediate products. He also anticipates that high energy prices will further fuel inflation. Despite these uncertainties, DEKRA is aiming for ambitious growth of around five percent in 2022. The company expects increasing investments in cybersecurity, particularly in the automotive sector.