Chicago, May 25, 2022 (GLOBE NEWSWIRE) — 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 the advent of autonomous vehicles, the introduction of the 5G network in the automotive industry, the focus of OEMs and government on electric vehicles, the use of advanced technologies, concerns about the Vehicle and passenger safety and vehicle weight reduction are driving the automotive engineering services market. .
Automotive engineering services deal with the design and development of automotive components and associated technologies to address the complex technical challenges of the vehicle development value chain. The engineering service process begins with conceptualization, design, prototyping, system integration, and testing. Automotive engineering services include vehicle connectivity services, ADAS (advanced driver assistance systems) and safety systems, interior and exterior design and body engineering services, passenger comfort , etc. These services assess different areas of a vehicle and provide data to verify the development and validation of a vehicle.
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).
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In-house engineering services are expected to dominate the automotive engineering services market over the forecast period
In-house engineering services are expected to be the largest market. Major OEMs retain complex automotive engineering services such as engine design, powertrain design, and transmission systems for in-house development. These designs and optimizations vary from OEM to OEM and therefore require different techniques and specializations which can be done in-house for best results. Additionally, the growing focus on zero-emission vehicles has forced OEMs to redesign their existing engines to comply with the latest emission standards. The design of electric vehicles would increase the demand for internal investments by OEMs.
Electrical, electronic and body controls are expected to dominate the automotive engineering services market
Electrics, electronics and automotive body controls have a high proportion of added value in vehicle development. Electronic and electrical systems play a crucial role in managing all functions dedicated to passenger comfort and convenience. Services in the fields of automotive electrical and electronics include power management module, air conditioning, power window, body control module, as well as rearview mirror and windshield wipers. smart ice cream. The trend is expected to grow due to the adoption of electric vehicles and complex electronic components for a safer and more functional driving experience. Service providers such as L&T Technology Services and FEV have invested enormous resources in developing electrical, electronic and body control solutions in automotive engineering services.
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Connectivity services segment is expected to be the fastest growing market over the forecast period
Connectivity services segment is expected to be the fastest growing market over the forecast period. The expansion of autonomous vehicle testing, advancements in artificial intelligence, and the introduction of 5G connectivity have increased the demand for connected services in automotive engineering services. Connectivity services help control vehicle activities such as smart infotainment, vehicle diagnostics, parking assist features, diagnostics, and more. Equipment manufacturers offer connectivity services in their vehicles. For example, in July 2018, Audi entered into a partnership with Huawei, the largest manufacturer of telecommunications equipment and smartphones in China, to introduce connectivity features in upcoming vehicles. The Renault-Nissan-Mitsubishi Alliance plans to launch new vehicles with Alliance Connected Cloud in China by 2022. All these improvements would accentuate the need for new sensors and IoT device use cases in the coming years. Thus, the automotive industry would experience a growing demand for engineering service providers, specializing in connectivity services.
Europe is estimated to be the largest market for automotive engineering services.
It accounts for a 43.0% share of the global automotive engineering services market in 2021, and the market in this region is expected to register a CAGR of 8.9% during the forecast period.
The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) provides growth opportunities for the automotive engineering services market in the region. European automotive companies dominate the global landscape, accounting for nearly 50% of R&D spending by companies such as BMW, Continental and Daimler. Increasingly stringent regulations related to environmental issues are encouraging market players to test and develop advanced vehicles, further boosting the automotive engineering services market. For example, in March 2017, L&T Technology Services unveiled a new delivery center for a German OEM in Munich. The center would provide engineering and R&D services for the company’s suite of infotainment consoles and its family of hybrid electric vehicles. In October 2018, Siemens Mobility launched a field test for autonomous driving at the Siemens campus in Munich-Perlach, Germany, in partnership with IAV GmbH (IAV Automotive Engineering), Institute for Climate Protection, Energy and Mobility (IKEM ), Emm Solutions GmbH, UTB Projektmanagement GmbH and the Technical University of Munich (TUM). The project was set up to test the interaction between road infrastructure, cloud-based software services and autonomous electric vehicles.
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