Automotive Engineering Services Market Size

Automotive Engineering Services Market Insights

Automotive Engineering Services Market size was valued at USD 124,176.69 Million in 2023 and is poised to grow from USD 135,085.60 Million in 2024 to USD 3,00,314.96 Million by 2032, growing at a CAGR of 10.7% 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.

FAQs

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).

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. '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)'

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.

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.

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.