Automotive engineering

The automotive engineering services market size is expected to reach USD 271.86 billion at a CAGR of 8.50% by 2028

Reports and data

Automotive Engineering Services Market Size – USD 140.63 Billion in 2020, Market Growth – CAGR of 8.50%.

NEW YORK, NY, USA, August 3, 2022 /EINPresswire.com/ — Technological advancement of autonomous vehicles, introduction of 5G network will drive the market at a high CAGR during the forecast period.

Market Trends – Increased spending on vehicle electrification, vehicle connectivity; Less transportation emissions, APAC expected to record the highest market share

The automotive engineering services market was valued at USD 140.63 billion in 2020 and is projected to reach USD 271.86 billion by 2028, at a CAGR of 8.50% CAGR during the forecast period (2018 to 2026). The major drivers responsible for the growth of the automotive engineering services market include an increase in automotive R&D expenditure, increase in outsourcing activities by automotive OEMs, and increase in ER&D investment by software companies and of telecommunications in the connected and autonomous vertical sectors. Vehicle electrification, smart mobility, and Internet of Things (IoT) are the major technology-driven trends in the global automotive industry and are positively impacting the automotive engineering services market. Additionally, automotive engineering service providers are increasingly viewed as critical partners, who can help accelerate product development cycles and reduce costs and lead times in this rapidly changing automotive landscape.

Automakers around the world are witnessing the need to increase their engineering capabilities to keep pace with growing customer demand for new products and technologies. While such demands are generally beneficial to businesses, they pose greater challenges.

The continued pressure to rapidly design, prototype, manufacture and bring new products to market, in response to ever-shrinking product life cycles and increased demand, strains internal engineering staffs and processes operation of automotive equipment manufacturers.

Automotive OEMs contribute significantly to the key share of total outsourcing of engineering services to automotive engineering service providers. The world’s leading engineering contractors, such as BMW, Volkswagen, Renault, Daimler, and Ford, among others, have global expenditures on automotive engineering services of approximately $8 billion per year. Thus, the existing engineering capabilities of automotive OEMs coupled with outsourced services, to meet current product development needs, OEMs are reducing their operating costs and betting on their more sustained growth. Additionally, the growing intense competition in the automotive industry and automotive OEMs are increasingly focusing on concentrating their key capabilities, which is driving the global automotive engineering services market.

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Other key findings from the report suggest

• Embedded systems segment is expected to witness the highest growth during the forecast period.
• Growing concerns about passenger and driver safety in cars, increasing integration of AI across the entire automotive ecosystem for driving assistance and automation, and stringent government regulations are the major factors fueling the demand for embedded systems
• Electronic and electrical systems play an essential role in the management of all functions dedicated to the comfort and convenience of passengers and driver. Automotive electronics services include air conditioning, power management module and similar offerings. This trend is expected to increase due to the adoption of complex electronic and electric vehicles
• Automotive engineering services providers such as Harman, L&T Technology Services and FEV have invested huge resources to develop electronic, electrical and body control solutions in the automotive engineering services market
• The European region is expected to occupy the largest share of the automotive engineering services market, followed by the Asia-Pacific and North America region. Most automotive engineering services companies are concentrated in Europe.
• Within the European region, Germany is expected to be the largest market for engineering services. In the Asia-Pacific region, India is expected to be the market with the largest engineering services market share.
• India accounts for around 30% of all business process outsourcing (BPO) and engineering services outsourcing (ESO) and talent, among the lowest cost countries.
• The engineering services outsourcing segment, in the country, is shifting from conventional back-office services of the past to high-end technology works, and is now serving several growing sectors, including automotive
• In 2019, Geely Auto (China-based car manufacturer) partnered with Ricardo (UK-based global engineering and strategic, technical and environmental consultancy)
• The partnership aims to build an advanced hybrid drivetrain specifically for range-extended PHEVs (plug-in hybrid electric vehicles)
• Many companies like Harman, Capgemini, AVL, Bertrandt, Alten Cresttek, L&T Technology Services, FEV, Akka Technologies, HCL Technologies, IAV Automotive Engineering, Altran, Ricardo and others. Automotive Engineering Services Market.

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For the purposes of this study, the reports and data have segmented the industry by service type, nature, application, location and region:

Automotive Engineering Services by Service Type (Revenue, USD Million; 2018-2028)

• Concept/Research
• Design
• Manufacturing assistance
• Validation analysis and predictive engineering
• Prototyping
• System integrator
• Testing

Automotive Engineering Services by Nature (Revenue, USD Million; 2018-2028)

• Bodywork rental
• Turnkey

Automotive Engineering Services by Application (Revenue, USD Million; 2018-2028)

Electrics, electronics and body controls
Frame
In-vehicle systems and infotainment
o HMI platform
o Multimedia subsystem
o Telematics solution
o Instrument clusters
Interior and exterior bodywork
Powertrain and Exhaust
Simulation

Automotive Engineering Services by Location (Revenue, USD Million; 2018-2028)

• At sea
• Down

Automotive Engineering Services by Region (Revenue, USD Million; 2018-2028)

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

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Reports and data
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