USD 164.62 Billion
Automotive Engineering Services Market Size, Share, and Growth Analysis
Automotive Engineering Services Market By Location(In-House, Outsource), By Service Type(Concept/Research, Designing, Prototyping, System Integration), By Application(ADAS and Safety, Electrical, Electronics, and Body Controls), By Vehicle Type(Passenger Cars, Commercial Vehicles), By Nature Type(Body Leasing, Turnkey), By Propulsion(Internal Combustion Engine, Electric), By Region - Industry Forecast 2025-2032
Report ID:
SQSG45B2017 |
Region:
Global |
Published Date: November, 2024
Pages:
265
|Tables:
71
|Figures:
75
Format -
Automotive Engineering Services Market Insights
Automotive Engineering Services Market size was valued at USD 164.62 Billion in 2023 and is poised to grow from USD 178.28 Billion in 2024 to USD 337.39 Billion by 2032, growing at a CAGR of 8.30% during the forecast period (2025-2032).
Automotive engineering services can provide a range of services, including navigation, smart infotainment, passenger safety, and remote diagnostics, there is a growing trend of improved connectivity solutions. It is projected that during the forecast period, the automotive engineering services market will exhibit growth possibilities, hence increasing the market size. Automotive engineering services are used extensively in the production and processing procedures, testing, and designing components of the vehicle as well as the maintenance and diagnosis of mechanical, electrical, electronic, and software systems. This provides the car with the ideal model, size, and shape. The sales of automotive engineering services are boosted by a variety of services, such as engine and transmission-related services, chassis replacement, and component upgrades.
By integrating every component, automotive engineering services take the idea stage all the way to the use phase. In-house automotive engineering services, which include these parts and fittings, can either be performed by the vendor or outsourced. This boosts the sales of engineering services for automobiles. This demand for more advanced and independent features is the push for innovation in automotive engineering services in the ongoing transformation of the entire vehicle industry. As the growing trend for a more connected world becomes apparent, nearly all vehicle manufacturers must move into the automotive engineering services arena. They are doing this by gaining new knowledge and skills in vehicle software and electronic services.
US Automotive Engineering Services Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
ADAS & Safety
Fastest Growth
Battery
Growth Rate
8.30% CAGR
Global Automotive Engineering Services Market ($ Bn)
Country Share by Asia Pacific (%)
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Automotive Engineering Services Market Segments Analysis
Global Automotive Engineering Services Market is segmented by Location, Service Type, Application, Vehicle Type, Nature Type, Propulsion, and region. Based on Location, the market is segmented into In-House, and Outsource. Based on Service Type, the market is segmented into Concept/Research, Designing, Prototyping, System Integration, and Testing. Based on Application, the market is segmented into ADAS and Safety, Electrical, Electronics, and Body Controls, Chassis, Connectivity Services, Interior, Exterior, and Body Engineering, Powertrain and Exhaust, Simulation, Battery Development and Management, Charger Testing, Motor Controls Centers, and Others. Based on Vehicle Type, the market is segmented into Passenger Cars, and Commercial Vehicles. Based on Nature Type, the market is segmented into Body Leasing, and Turnkey. Based on Propulsion, the market is segmented into Internal Combustion Engine, and Electric. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Automotive Engineering Services Market Analysis by Application
As per categorization by application, the market is classified as ADAS & safety, body electrical & electronics, chassis, connectivity, interior/exterior, powertrain & exhaust, battery, motor, charger test and simulation. Among these, ADAS & safety earned the largest share and continue to hold the dominant global automotive engineering services market share. Autonomous driving, collision avoidance, and adaptive cruise control are among the advanced features driving innovations in ADAS and Safety applications, focusing on the global automotive engineering services market. As these systems incorporate AI, sensors and real-time processing, they provide better vehicle safety, accident reduction, and enhanced driver assistance. ADAS and Safety majorly persist in the increasing market due to rising consumer demand for safer and smarter vehicles, more stringent requirements by regulatory bodies and massive investments in autonomous and connected vehicle technologies.
The Battery application is set to become the fastest-growing segment in the global automotive engineering services market, driven by the increasing adoption of electric vehicles (EVs) and the shift towards sustainable mobility. Since automakers prefer driving longer, charging faster, and bettering battery terms, battery development is very vital. There is a skyrocketing demand for high-performance lithium-ion batteries, solid-state batteries, next-generation energy storage technologies, and even more. Also, with so many vehicles getting sold in the international market, car manufacturers have begun pouring millions of dollars into research and development, production, and integration of advanced battery systems, thus making battery application one of the most important growth drivers in automotive engineering services.
Automotive Engineering Services Market Analysis by Service Type
Designing services in the global automotive engineering services market are witnessing significant innovation, driven by the need for more efficient, sustainable, and advanced vehicle designs. Aerodynamics, lightweight materials, and electric drivetrains will be integrated into the design. The advancement of digital modeling, 3D printing, and simulation technologies has improved speed of prototyping and optimization in design processes. Design services are overwhelming in the market as it engulfs design improvements in aesthetics, performance, and functionality of the vehicle. The increasing endeavors of automakers toward innovation in electric and autonomous vehicles, these services continue to witness substantial growth attributable to their anticipation of advanced, efficient, and customizable designs at a highly competitive level.
System Integration is poised to be the fastest-growing segment in the global automotive engineering services market due to the increasing complexity of modern vehicles. With the growing vehicle connectivity and autonomy, the advanced integration of AI, sensors, ADAS, infotainment, and electric drivetrains is rendered indispensable for seamless vehicle operations. Demand for smarter and more efficient vehicles thus is leading to the admission of further systems into integrated harmony. And of course, with many electrical and driverless vehicles making heavy usage of software and hardware integration technologies, that translates to massive growth of the integration services sector.
Global Automotive Engineering Services Market By Application (%)
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Automotive Engineering Services Market Regional Insights
Asia-Pacific dominates the global automotive engineering services market due to its robust automotive manufacturing base, technological advancements, and increasing investments in electric and autonomous vehicles. In such countries as China, Japan, or South Korea, outstanding innovation drives change in vehicle designs, safety systems, and electrification. Even large consumer markets and government support for adopting electric vehicles in that region underscore the gradual shift toward sustainable, automated living. The Asia-Pacific region comprises a very strong supply chain network and cost-effective productions, which have made the region an automotive engineering service hub. This enabled the region to lead globally in both volume and technological innovation.
Europe is the fastest-growing region in the global automotive engineering services market, driven by its strong focus on innovation, sustainability, and regulatory compliance. Countries in Europe like Germany, France, and the UK offer their elite capability in automotive engineering, together with an emerging growth of electric and self-driving vehicles. Stringent environmental regulations and targets for greenhouse gas reduction are fuelling the demand for advanced engineering services in vehicles in general and in design, battery systems, and safety features. Europe is making strategic investments in research and development, and more developments within its robust automotive industry infrastructure prepare it to be hosted to engineering solutions of the highest order; that pricks the growth of the industry's overall developments.
Global Automotive Engineering Services Market By Geography
- Largest
- Fastest
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Automotive Engineering Services Market Dynamics
Automotive Engineering Services Market Drivers
Technological Advancements in Car Technology
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Technological advancements, especially in electric vehicles (EVs), autonomous driving, and connected car technologies, are significant drivers for the global automotive engineering services market growth. The ever-growing demand for vehicles that are very efficient, safer, and smarter than ever before keeps the original equipment manufacturer on their toes. They are to innovate indeed in engineering designs, making it a point for engineering service providers to service cutting-edge technologies.
Stringent Regulatory Requirements
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Stringent environmental and safety regulations are increasingly fueling the growth of the global automotive engineering services market. Emission standards and vehicle safety regulations have become tougher around the world, eventually persuading automakers to take up advanced engineering solutions. Such demands for compliance create an immediate need for specialized engineering services to meet the above-mentioned regulatory demands.
Automotive Engineering Services Market Restraints
Intellectual Property Concerns
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Intellectual property (IP) issues pose a restraint in the global automotive engineering services market. The increasing complexity of vehicle systems and the integration of advanced technologies raise concerns over the protection of proprietary designs and innovations. This fear of IP theft can limit collaboration and outsourcing opportunities within the industry.
Regulatory Compliance Costs
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The increasing price tag of updating compliance with the changing environmental, safety, and quality standards can be an impediment to the global automotive engineering services market. All automakers usually have to spend hefty sums of money for compliance measures, testing, and certification. This not only raises the overall engineering costs but also hinders the profit margin on which the automotive business is run.
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Automotive Engineering Services Market Competitive Landscape
The competitive landscape of the global automotive engineering services market is marked by the presence of several key players focusing on innovation, technological advancements, and market expansion. Tata Elxsi, Altran, Capgemini, AVL List GmbH, Ricardo are some of the established companies which are engaged in providing engineering services encompassing design; prototyping; system integration; and testing. The companies are increasingly channelizing their R&D, and strategic partnerships and acquisitions to make market penetration towards meeting the demand for sophisticated automotive solutions.
Top Players in Automotive Engineering Services Market
- Capgemini (France)
- AKKA Technologies (France)
- Tech Mahindra (India)
- IAV Automotive Engineering (Germany)
- HCL Technologies (India)
- Ricardo (UK)
- AVL (Austria)
- Bertrandt AG (Germany)
- Alten Group (France)
- L&T Technology Services (India)
- FEV (Germany)
- Imaginative Automotive Engineering Services (India)
- Onward Technologies (India)
- Automotive Engineering Services (AES) (India)
- Kistler (Switzerland)
- Continental Engineering Services (Germany)
- EDAG (Germany)
- ESI Group (France)
- Semcon (Sweden)
- Segula Technologies (France)
- Epam Systems (US)
- Belcan (US)
- T-Net Japan (Japan)
- Designtech Systems (India)
- Horiba (Japan)
- Intertek (UK)
- Altair Engineering (US)
- ARRK Product Development Group (Japan)
Recent Development in Automotive Engineering Services Market
- In December 2024, Tata Elxsi launched an advanced engineering platform to facilitate the development of electric and autonomous vehicles. By leveraging the latest technologies in AI, machine learning, and IoT, the platform is expected to reduce the time-to-market in the design, prototyping, and validation processes. The development is expected to address the changing demands of the automotive industry and would also prepare for the upcoming transition to electrification.
- In November 2024, Capgemini introduced a new suite of digital engineering solutions to enhance vehicle connectivity and improve the customer experience. The solutions focus on developing next-generation infotainment systems, AI-driven driver assistance, and software-defined vehicles. This move supports Capgemini’s position as a leader in automotive engineering services by addressing the growing demand for smart vehicle technologies.
- In October 2024, FEV Group expanded its R&D capabilities with the opening of a new electric vehicle (EV) engineering center in Germany. This facility focuses on research and development for advanced batteries, energy-efficient systems, and next-generation powertrain systems for electric vehicles. In this sense, FEV aims to help automotive manufacturers transition from their gas run vehicles to electric and sustainable mobility with this site development.
Automotive Engineering Services Key Market Trends
- Shift Towards Electrification and Sustainability: Due to the increased importance of electric vehicles (EVs) and sustainability, the global automotive engineering services market trend is experiencing continued growth. Automotive firms are investing in the development of modern battery systems, efficient powertrains, and environmental-friendly designs for the automobile to meet environmental regulations and consumer preferences toward greener solutions for mobility.
- Integration of Autonomous and Connected Vehicle Technologies: The automotive engineering services market is driven by the increase in autonomous and connected vehicles. The need for continuous work in the integration and testing of ADAS systems, infotainment systems, and V2X communications is further enhanced by the trend toward innovative new system functions that will shape the future of automotive engineering.
Automotive Engineering Services Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global automotive engineering services industry is gearing itself up for robust growth sparked by technological advancements in electric and autonomous vehicles, the demand for designing more efficient vehicles, and the ever-increasing demand for advanced safety features. ADAS & Safety applications are holding a large share in the market due to brighter lights for the way ahead into the future.
Additionally, battery applications are experiencing rapid growth, propelled by the transition to electric vehicles. Design services continue to lead the market, with innovations in materials and simulation technologies. With increasing investments in system integration and connectivity, the market's future is bright, supported by strategic regional growth and technological progress.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 164.62 Billion |
| Market size value in 2032 | USD 337.39 Billion |
| Growth Rate | 8.30% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Engineering Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Engineering Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Engineering Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Engineering Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Engineering Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Engineering Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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