USD 19.19 billion
Automotive Engineering Services Market Size, Share, Growth Analysis, By Location (In-House, Outsource), By Service Type (Concept/Research, Designing), By Application (Electrical, Electronics, and Body Controls, Connectivity Services), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Nature Type (Body Leasing, Turnkey), By Propulsion (Internal Combustion Engine, Electric), By Region - Industry Forecast 2024-2031
Report ID:
SQSG45B2017 |
Region:
Global |
Published Date: February, 2024
Pages:
265
|Tables:
71
|Figures:
75
Automotive Engineering Services Market Insights
Global Automotive Engineering Services Market size was valued at USD 152 billion in 2022 and is poised to grow from USD 164.62 billion in 2023 to USD 311.53 billion by 2031, growing at a CAGR of 8.30% during the forecast period (2024-2031).
Automobile electronics, electrical software, mechanical, and advanced safety engineering are all included in the subset of automotive engineering services that makes up vehicle engineering. The development, design, operation, and production of passenger cars and commercial vehicles all heavily rely on automotive engineering services. Additionally, these services are designed to enhance the manufacturing process and save additional costs. The expansion of the market will be fueled by the rising demand for in-vehicle technological advances that would enable greater penetration of services like smart infotainment and remote diagnostics as well as enhanced connection solutions. However, intellectual property laws limit service providers from continually utilizing the available technology, and new inventions cost a significant amount of time and money, which is one of the biggest obstacles.
US Automotive Engineering Services Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
connectivity services
Fastest Growth
connectivity services
Growth Rate
5.7% CAGR
Global Automotive Engineering Services Market, 2022-2028 ($ Bn)
Country Share for Asia Pacific Region- 2021 (%)
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Automotive Engineering Services Market Segmental 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, 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
The category of connection services is anticipated to experience the largest market growth during the projection period. The advancement of autonomous vehicle testing, improvements in artificial intelligence, and the rollout of 5G connections have all contributed to an increase in demand for connected services in the automotive engineering sector. The control of auto functions like smart entertainment, vehicle diagnostics, parking assistance features, diagnostics, and so forth is made easier by connectivity services. Automotive OEMs provide connectivity services in their vehicles.
Global Automotive Engineering Services Market By Application Type, 2021 (%)
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Automotive Engineering Services Market Regional Insights
Asia Pacific had the highest market share in 2021, due to a fast increase in the adoption of electric vehicles. The market is anticipated to expand as a result of the numerous government initiatives and strict restrictions to minimize carbon emissions in nations like Japan and South Korea. Throughout the projected period, the market in North America is anticipated to rise steadily. Some of the key reasons propelling the market's expansion include the rising sales of hybrid and plug-in hybrid electric vehicles and the rising demand for in-vehicle connectivity in passenger automobiles. Throughout the projection period, Europe is anticipated to have rapid market growth. Factors like the existence of large market competitors and growing concerns about carbon emissions in nations like Germany and France are anticipated to fuel market growth.
Global Automotive Engineering Services Market By Geography, 2022-2028
- Largest
- Fastest
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Automotive Engineering Services Market Dynamics
Automotive Engineering Services Market Driver
- The development of the next generation of connected vehicles has attracted significant investment from automotive OEMs and Tier 1 partners. In high-end sedans and SUVs, IoT gadgets, ultrasonic sensors, and high-definition cameras are typical. These various components combine to form an ecosystem that can communicate with the outside world and share data to improve the in-car experience. An onboard computer processes the data to offer numerous functions including seamless navigation and individualized infotainment systems. To schedule maintenance and examine the status and health of the vehicle, the data can also be utilized to predict engine issues.
Automotive Engineering Services Market Restraint
- Outsourcing is currently a widespread practice among OEMs, Tier 1 suppliers, and system integrators in the automobile sector. Before final manufacturing, a typical engineering service goes through designing and testing phases beginning with a concept or study phase. In some instances, the OEM is the owner of new intellectual property for processes or technologies that emerged throughout the entire process. With the restriction of employing the current technology already patented by many OEMs, service providers may nevertheless be collaborating with multiple OEMs for identical requirements or specifications. Service providers must therefore be particularly attentive while following IP violation laws. Automotive industry innovation requires a lot of effort and money. IP laws forbid service providers from using the same technology more than once, which may limit the use of engineering service technology.
- The COVID-19 pandemic-related lockdown has halted production and affected global car manufacturing, which hurts the supply of the market for automotive engineering services. Since COVID-19 has placed limitations on travel and forced people to preserve their social distance from one another, the labor shortage has also had an impact on the market for automotive engineering services. Additionally, COVID-19 had a favorable effect on the market for electric vehicles as the number of electric vehicle sales grew from the previous year. Therefore, it is anticipated that a boost in electric vehicle sales will fuel market expansion throughout the epidemic. Additionally, compared to the vehicle market, the COVID-19 epidemic had very little of an impact on the market.
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Automotive Engineering Services Market Competitive Landscape
The key players in the automotive engineering services market are working on continuous innovation and product portfolios. Furthermore, the growing relevance of IoT, fueled by the expanding therapeutic applications of these services, is expected to drive the growth of Automotive Engineering Services during the forecast period. For instance, in July 2020, Audi announced a partnership with Huawei, the top producer of smartphones and telecommunications equipment in China, to integrate connection technology into upcoming cars.
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 Global Automotive Engineering Services Market
- In May 2022, Adler Pelzer Group (APG) signed a Memorandum of Understanding with the Government of Taixing City where it plans to manufacture parts for its customers using its latest technologies of composite material for interior and exterior hard trims.
- In February 2021, Schaeffler Group announced that starting from 2024, it will create a hybrid electric vehicle drive unit with two electric motors, a transmission, and built-in power electronics. High performance with minimal fuel usage is possible with a system power rating of 120 kW. The latest order for dedicated hybrid drives is consistent with this.
Automotive Engineering Services Key Market Trends
- Driverless vehicles that can drive themselves by sensing their environment are known as autonomous vehicles. To react to external situations and adjust their driving, autonomous vehicles require cutting-edge automotive engineering services. These cars aid in enhancing traffic safety and decreasing vehicle collisions brought on by human mistakes.
- As software is anticipated to make fewer mistakes than humans, automated vehicles have the potential to reduce the number of casualties. Additionally, fewer accidents mean less traffic congestion, and less human behavior means fewer roadblocks. For instance, autonomous vehicles aid those who are unable to drive due to a disability or advanced age because they offer a more convenient mode of transportation. For instance, Ford is one of the leading businesses worldwide devoted to the creation of driverless automobiles. By the end of 2022, it plans to introduce completely autonomous vehicles. Therefore, the market for automotive engineering services is anticipated to rise significantly as demand for autonomous vehicles increases.
Automotive Engineering Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our business information services team that collects, collates, co-relates, and analyses the data collected using primary exploratory research backed by robust secondary desk research.
According to our analysis, the designing segment dominated the global automotive engineering services market in 2021 and is anticipated to maintain its dominance throughout the forecast period. In 2021, Asia Pacific dominated the global automotive engineering services market owing to the region's highly aware and economically stable population.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 152 billion |
| Market size value in 2031 | USD 311.53 billion |
| Growth Rate | 8.30% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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.
Automotive Engineering Services Market Report Snapshots
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