Global Automotive Engineering Services Market Analysis & Trends - Industry Forecast to 2030

Global Automotive Engineering Services Market Analysis & Trends - Industry Forecast to 2030

Automotive Engineering Services: Market Size

From $315.81 billion in 2024, the global Automotive Engineering Services market is projected to reach $650.54 billion by 2030. Based on our analysis the market is expected to grow at a CAGR of 12.8% from 2024 - 2030 timeframe. Some of the prominent trends that the market is witnessing include demand for luxury vehicles, rising demand for advanced connectivity solutions, and standardization of safety features.

Global Automotive Engineering Services Market: Market Dynamics

Automotive original equipment manufacturers (OEMs) and tier 1 partners have invested enormous resources in rising next-generation connected vehicles. IoT devices, ultrasonic sensors, and high-definition cameras are common in quality sedans and SUVs. All these different elements produce an eco-system that can connect with the outside world and exchange data to improve the in-car experience. The data is practiced by an onboard computer to provide different features such as smooth navigation and personalized infotainment systems. The data can also be used to analyze the vehicle condition/health to schedule maintenance, which, in turn, can prevent uncertain engine failures.

Automotive engineering services fall under the engineering solutions, for various parts of the vehicles including software, mechanical, electrical and electronics and safety engineering services and solutions to design vehicles for marine, aviation and land applications. These engineering solutions are utilized to optimize the manufacturing process for refining the operational cycle of the company without compromising the quality of the vehicle.

On the other hand, intellectual property (IP) constraint is likely to obstruct the profit boundaries. In addition, demand for luxury vehicles and advanced connectivity solutions will further boost the automotive engineering services market.

Impact of COVID-19 on Automotive Engineering Services

The COVID-19 outbreak was declared as a global pandemic by WHO as it has spread in various countries across the globe and increased the number of cases multi-folds in few weeks. The COVID-19 pandemic has negatively hit many economies around the globe. The combat measures like complete lockdown and quarantine to fight COVID-19 have put a strong adverse impact on many industries across the globe including the automotive industry. The auto industry has seen the impact of the coronavirus crisis evolve from a supply shock to a global demand shock. The ambiguity concerning the possible length of lockdown and supply chain disruptions has made it even more difficult for industry players to anticipate the resurgence in the automotive industry. In addition to the impact on production activities, the constant pandemic has taken a toll on the consumer command as well as for automobiles, likely exacerbated by the lockdown imposed across major countries.

By Application

Infotainment & Connectivity Segment Dominate the Market in 2024

The infotainment & connectivity segment made huge revenue in 2024 and growing its prominence during the forecast period. The expansion of autonomous vehicle testing, advancements in artificial intelligence, and the introduction of 5G connectivity have increased the command for connectivity in automotive engineering services. However, infotainment devices are the equipment that furnishes entertainment and information comprising systems for fuel efficiency, navigation, safety, connectivity, and audio.

By Geography

Asia Pacific Region is Leading in the Global Market Place

Asia Pacific is likely to have a huge demand in the forecast period owing to the high implementation of electric passenger cars, especially in China. Japan accounts for the largest share of the automotive engineering services market in the Asia Pacific region. The markets in India and Japan are also increasing owing to the policies and mandate instituted by their respective governments to reduce emission levels and increase the use of green technology.

List of the Key Players Profiled in the Market Include:

• AKKA
• Alten
• ARRK Product Development Group Ltd.
• ASAP Holding GmbH
• ATIPL Altran Technologies Ltd.
• Bertrandt AG
• EDAG Engineering GmbH
• FEV Group GmbH
• HCL Technologies Limited
• Horiba Ltd.
• IAV Automotive Engineering
• ITK Engineering GmbH
• L&T Technology Services
• M Plan GmbH
• Onward Technologies Ltd.
• Ricardo
• RLE International Group
• Tech Mahindra Limited
• T-NET JAPAN Co., Ltd.
• AVL

List of the Regions/Countries Profiled in the Market Include:

North America
• US
• Canada
• Mexico
Europe
• Germany
• U.K
• Italy
• France
• Spain
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Australia
• New Zealand
• Rest of Asia Pacific
Middle East
• Saudi Arabia
• UAE
• Rest of Middle East
Latin America
• Argentina
• Brazil
• Rest of Latin America
Rest of the World (RoW)
• South Africa
• Others