Dublin, April 28, 2021 (GLOBE NEWSWIRE) — The “Global Automotive Engineering Services Market by Application (ADAS & Safety, Electrical & Body Electronics, Chassis, Connectivity, Interior/Exterior, Powertrain & Exhaust, Battery, Engine, Charger Testing, Simulation), Service, Location, vehicle and region – Forecast to 2027″ report has been added to from ResearchAndMarkets.com offer.
The global automotive engineering services market is expected to grow at a CAGR of 8.8%, from USD 153.3 billion in 2021 to USD 253.9 billion by 2027.
Factors such as growing demand for connected vehicles, increasing sales of electric vehicles, and adoption of advanced technologies are expected to drive the market. However, high investment risk and growing competition are the major challenges in the automotive engineering services market.
Growing concerns about air pollution and global warming have forced governments in several countries to enforce strict emissions policies and regulations for ICE vehicles. Growing adoption of electric vehicles is expected to change the outlook for the automotive engineering services market. Rising electric vehicle sales would accentuate the need to develop new battery technologies, new chassis and exterior designs, and advanced drivetrain systems for these vehicles.
Electric vehicle manufacturers such as Tesla, Nissan and BAIC are outsourcing the design and development of new technologies and solutions to Tier 1 engineering companies. the automotive engineering services market over the forecast period.
Tesla, Volkswagen, Ford, General Motors and Google plan to launch fully autonomous vehicles in the coming years. These vehicles would require automotive engineering services, including newly designed chassis systems and body controls, new electronics, advanced vehicle aerodynamics and stability solutions.
Major OEMs and email service providers such as General Motors, Ford, Uber, Lyft and Waymo have launched robo-taxi trials in the United States. Passengers can hail a self-contained cabin from a dedicated app. The United States has become the first country to fully deploy robot taxis for public transportation. Companies such as Tesla, Volkswagen, Ford, General Motors and Waymo are also planning to launch fully autonomous vehicles in the coming years.
In March 2018, Nissan announced plans to roll out ProPILOT in 20 models by 2022. The growing focus on autonomous driving systems would require OEMs to incorporate more cruise control features and advanced safety systems for semi-autonomous vehicles. This should further generate more opportunities for engineering services companies, especially in the area of autonomous vehicles. However, the negative impact of COVID-19 could delay the development and deployment of autonomous driving systems. For example, Ford delayed the rollout of autonomous vehicles until 2022, compared to the previously announced 2021.
The passenger car segment is expected to be the largest and fastest growing segment in the forecast
The passenger vehicle segment is the most targeted vehicle segment for service providers. The technologies used in these vehicles change frequently due to high consumer demand for luxury features and ADAS. Additionally, government emissions regulations change frequently, prompting manufacturers to increase the power ranges of electric vehicles and provide consumers with energy-efficient and low-maintenance technologies.
Increasing urbanization and changing customer needs have influenced global passenger car sales in recent years. The market for automotive engineering services has grown significantly in the passenger car segment due to growing customer demand for connectivity and security.
The growing demand for digital connectivity features is supported by wide network coverage of 5G connectivity and the installation of IoT devices in premium sedans and SUVs. In the current scenario, customers want eco-friendly mobility coupled with communication.
This creates an opportunity for OEMs to offer more connectivity features in their upcoming vehicles. Hence, the demand for various automotive engineering services is expected to increase over the forecast period. For example, in 2020, Altran and 5TONIC collaborated on 5G mobile projects to improve the reliability and performance of advanced driver assistance systems (ADAS) in cars.
Outsourcing is expected to be the fastest growing segment of the forecast period
Growing consumer demand for advanced vehicle connectivity services would drive the outsourcing market during the forecast period. OEMs are likely to focus on increasing their outsourcing of automotive engineering services as they prefer flexibility to meet specific customer demand in all regional markets. Research and testing of connected cars and cybersecurity are major challenges that contribute to a high number of software changes and software management services.
The automotive engineering services market is dominated by global players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium) and Bertrandt AG (Germany).
- Growing demand for advanced connectivity solutions
- Adoption of electric vehicles and shared mobility for a greener environment
- Demand for luxury vehicles
- Intellectual Property (IP) Constraint
- Change of business model
- Standardization of security features
- The rise of autonomous vehicles
- Outsourcing request
- Implementation of strict emission standards and environmental regulations
- Intense competition
- Risk of heavy investments
- Security threats
- Model-Based System Engineering by L&T Technology Services
- Simulation-based development of functional oil distribution in electric axle systems, by AVL and Schaeffler
- international Harman
- Tech Mahindra
- Bertrandt AG
- Alten Group
- L&T Technology Services
- AKKA Technologies
- HCL Technologies
- Automotive Engineering IAV
- Imaginative Automotive Engineering Services
- Advanced technologies
- Automotive Engineering Services (AES)
- Continental Engineering Services
- ESI Group
- Segula Technologies
- Global logic
- EPAM systems
For more information on this report, visit https://www.researchandmarkets.com/r/us069t