Automotive Engineering Services

Automotive Engineering Services

Global Automotive Engineering Services Market to Reach US$349.3 Billion by 2030

The global market for Automotive Engineering Services estimated at US$202.5 Billion in the year 2023, is expected to reach US$349.3 Billion by 2030, growing at a CAGR of 8.1% over the analysis period 2023-2030. In-House Services, one of the segments analyzed in the report, is expected to record a 8.4% CAGR and reach US$230.4 Billion by the end of the analysis period. Growth in the Outsourced Services segment is estimated at 7.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$27.3 Billion While China is Forecast to Grow at 10.6% CAGR

The Automotive Engineering Services market in the U.S. is estimated at US$27.3 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$67.9 Billion by the year 2030 trailing a CAGR of 10.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.1% and 7.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.9% CAGR.

Global Automotive Engineering Services Market - Key Trends & Drivers Summarized

Automotive engineering services encompass a broad range of design, development, and testing activities aimed at creating and improving vehicles and their components. These services are provided by specialized firms and include areas such as mechanical design, electrical engineering, software development, prototyping, and testing. The automotive industry relies heavily on these engineering services to innovate and stay competitive in a rapidly evolving market. Key areas of focus include the development of electric and autonomous vehicles, advanced driver-assistance systems (ADAS), and the integration of new technologies such as artificial intelligence (AI) and the Internet of Things (IoT) into vehicles.

The demand for automotive engineering services has been significantly influenced by the shift towards electric mobility and the pursuit of autonomous driving capabilities. Electric vehicle (EV) development requires expertise in battery technology, power electronics, and electric drivetrains. Autonomous vehicles (AVs) and ADAS demand advanced skills in sensor integration, machine learning algorithms, and vehicle-to-everything (V2X) communication. Additionally, the need for lighter, more fuel-efficient vehicles drives the demand for innovative materials and manufacturing processes. The collaboration between traditional automakers and tech companies is also shaping the future of automotive engineering.

The growth in the automotive engineering services market is driven by several factors. Firstly, the accelerating development and adoption of electric vehicles (EVs) and autonomous vehicles (AVs) are major drivers, necessitating advanced engineering expertise. Secondly, the continuous innovation in ADAS and vehicle safety technologies is boosting the demand for specialized engineering services. Thirdly, regulatory pressures to reduce emissions and enhance vehicle safety are encouraging automakers to seek external engineering support. Additionally, the rise of connected vehicles and the integration of IoT technologies are creating new opportunities for engineering services. Furthermore, the increasing complexity of automotive systems and the need for rapid prototyping and testing are driving the demand for comprehensive engineering solutions. Lastly, the trend towards digitalization and the use of simulation and virtual testing tools are enhancing the capabilities and efficiency of automotive engineering services.

Select Competitors (Total 106 Featured) -

• AKKA Technologies
• ALTEN Group
• AVL List GmbH
• Bertrandt AG
• Continental AG
• EDAG Engineering Group AG
• ESI Group
• FEV Europe GmbH
• HARMAN International
• HCL Technologies Limited
• IAV Automotive Engineering Inc.
• Kistler Group
• L&T Technology Services Limited
• Onward Technologies Ltd.
• Ricardo PLC
• Semcon
• SOLIZE Corporation
• Tech Mahindra Limited
• T-NET JAPAN Co., Ltd.
• Valmet Automotive

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