Automotive Engineering Services Outsourcing Market Size, Share & Trends Analysis Report By Application, By Service (Designing, Prototyping), By Location (On-shore, Off-shore), And Segment Forecasts, 2023 - 2030
Automotive Engineering Service Outsourcing Market Growth & Trends
The global automotive engineering services outsourcing market size is anticipated to reach USD 208.79 billion by 2030, registering CAGR of 11.2% during the forecast period, according to a new report by Grand View Research, Inc. Increasing collaborative activities between Original Equipment Manufacturers (OEMs) and Engineering Service Providers (ESPs) to achieve promising technologies for performance enhancement, self-driving, and safety assurance adjustments are the factors anticipated to propel the automotive ESO market growth.
Furthermore, the government's introduction of strict emission norms for the effective utilization of fuels is predicted to contribute to the demand for the automotive ESO market. For instance, in January 2021, the U.S. President, Joe Biden, signed an executive order that addressed the climate crisis to protect the environment and public health. The order directed the Environmental Protection Agency (EPA) to propose revising, suspending, or rescinding the earlier set standard under The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021–2026 Passenger Cars and Light Trucks.
The automotive ESO market has witnessed technological growth owing to the increasing demand for the shared mobility, electrification, and self-driving. Furthermore, key companies have incorporated cloud technologies into their product offerings to connect & access data and develop more autonomous products. For instance, in May 2018, Horiba, LTD.'s Smart Emissions Measurement System (SEMS) used the combination of a cloud server and a database to obtain emission data, as there was a need to develop solutions for the emission measurement to build a cleaner future.
On the other hand, key participants in the market are impacted by the regulations stressing the elimination or limitation of CO2 emissions, enhancing testing procedures, and limiting noise pollution specific to certain regions or countries. For instance, in India, the automobile industry regulations are set by various committees, such as the Central Motor Vehicle Rules-Technical Standing Committee, Standing Committee on Implementation of Emission Legislation (SCOE), and Automotive Industry Standard Committee (AISC).
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