The global automotive engineering services market size was valued at US$ 170.25 billion in 2021 and is expected to hit US$ 360.22 billion by 2030, poised to grow at a CAGR of 8.7% during the forecast period 2022 to 2030.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
The software, electronics, mechanical, electrical, and advanced safety measures are all included in automotive engineering. The commercial vehicle and automobile engineers apply automotive engineering services in the development, design, operation, and production of vehicles. Furthermore, the automotive engineering services strive to improve the manufacturing process while maintaining vehicle efficiency.
The automotive engineering services market is being driven by factors such as the introduction of 5G networks in the automotive sector, autonomous vehicles, original equipment manufacturers and government focus on electric vehicles, growing concerns about vehicle and passenger safety, use of advanced technology, and automobile light weighting.
The automotive engineering services market is expanding as people become more conscious and seek technological solutions in the automotive and automobile industries such as collision avoidance sensors and connection sensors. The rising demand for light weight vehicles, as the manufacturers and government focus on developing and designing lightweight vehicles to make vehicles more fuel efficient, as well as rising demands for safety related systems as a result of government regulations, are driving the growth of the automotive engineering services market during the forecast period.
Report Scope of the Automotive Engineering Services Market
|Market Size by 2030||USD 360.22 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 8.7%
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Segments Covered||Location, Service, Application, Nature, Vehicle, Geography|
|Companies Mentioned||Tech Mahindra Limited, L&T Technology Services, IAV Automotive Engineering, HCL Technologies, Harman International Industries Inc., AltenCresttek Company, Akka Technologies, Fev Europe GmbH, Capgemini SE, Bertrandt AG|
The expansion of the automotive engineering services market is also being fueled by factors such as expanding sales of electric vehicle, increased research and development spending in the automotive sector, and stringent government laws and regulations for internal combustion engines vehicles.
Furthermore, the introduction of self-driving vehicles and the continued deterioration of environmental conditions are providing new growth prospects for automotive engineering services providers. On the other hand, the automotive engineering services market’s expansion is hampered by intellectual property restrictions and changing business model.
Since last few years, de-verticalization, or the practice of de-segregating services and operations from a vertically integrated firm, has gained momentum. The original equipment manufacturers transfer their product manufacturing and designing aspects to engineering services providers in the case of de-verticalization. This phenomenon has benefited the automotive services outsourcing business significantly, as it has aided in the creation of a more global supply base with newly constructed assembly plants, resulting automotive engineering services providers companies’ regional development.
The modular outsourcing has also grown in popularity as automobile manufacturers require standardized interfaces with self-contained functional components. With the introduction of modular designs, automobile manufacturers may now outsource difficult self-contained modules as well as acquire automotive engineering services for simple automobile parts and equipment.
The automobile industry is undergoing substantial transformation as a result of the adoption of automation technology brought about by Industry 4.0. As industry participants compete for the benefits of emerging technology, demand for outsourcing services is growing.
The emerging nations have garnered significant benefits from outsourcing design services, which are in high demand from original equipment manufacturers. The automobile manufacturers are extensively investing in research and development and partnering with automotive engineering services firms in order to assemble complex automobile features for their end users.
The growing demand for automobiles with attractive LED technology, lightweight body materials, and refined aerodynamics is expected to propel the growth of the global automotive engineering services market over the forecast period.
The in-house segment has attain market share of around 67% in 2022. As automotive engineering services providers concentrate around original equipment manufacturers in industrialized countries, notably for designing, prototyping, and other specialized services, it is expected to maintain its leadership position.
The outsource segment is fastest growing segment of the automotive engineering services market in the forecast period. This segment has accounted market share of 33% in 2022. The outsource from low countries is used by original equipment manufacturers. Due to the low costs and availability of highly skilled individuals, engineering service providers are heavily investing in creating delivery centers in emerging nations.
The prototyping segment has held highest revenue share in 2022. The extraordinary costs are incurred in the development of several prototypes prior to finalizing designs and processing mass production.
The designing segment also dominating the automotive engineering services market. To balance the power to weight ratios, automobile manufacturers are stressing the creation of automobiles with spacious and elongated interiors.
The powertrain and after-treatment segment dominated the automotive engineering services market in 2022. The significant changes in the automotive industry, particularly in internal combustion engines, necessitate automotive original equipment manufacturers opting for enhanced green powertrain technology, such as powertrain electrification, in order to reduce fuel economy and carbon emissions.
The body and chassis segment is fastest growing segment of the automotive engineering services market in 2022. The automotive engineering services market development is expected to be aided by a significant increase in the manufacturing of green vehicles in order to meet minimum emission standards. Furthermore, a growing emphasis on vehicle structural safety is projected to drive demand for chassis systems.
Europe dominated the automotive engineering services market in 2022. The regional market will benefit from rising investments in automobile electrification and autonomous technology. The automotive engineering services in Europe are supplying their end customers with technologically advanced solutions, giving them a competitive advantage in the automotive engineering services market.
Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The major automobile original equipment manufacturers are outsourcing production and related activities to emerging countries because of the availability of low-cost labor.
The mergers and acquisitions, partnerships, new product development, business expansions, collaborations, supply contracts, agreements, and contracts are some of the important marketing strategies used by the major market players to maintain their market position. Alten, for instance, partnered with Syrphus GmbH and assisted the company with hardware and software development, micromechanics, computer aided design, stress calculations, electrical installation, and testing services in order to manufacture hybrid aircraft capable of vertical landing and take off as well as horizontal flight capabilities.
Some of the prominent players in the global automotive engineering services market include:
Segments Covered in the Report
By Vehicle Type
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client