Global Automotive Engineering Service Market Analysis by Service Types, Vehicle Type, Location Type, Application, Region and segments forecast till 2033

Market Overview

The Global automotive engineering service market is presently worth USD 166,160 million, and is anticipated to grow to a value of more than USD 348,000 million by 2033, with a growing CAGR (compound annual growth rate) of over 8.6% from 2023 to 2033.

Report Scope

Global Automotive Engineering Service Market- Description

Automotive engineering services include mechanical, software, electrical, electronics, and safety engineering, which are predominantly a collection of various service offerings utilized to produce an automobile. The services are designed to improve the manufacturing process so that the company's entire operational cycle can be extended without affecting vehicle efficiency. As the business climate changes, automotive enhanced service providers (ESPs) develop increasingly adaptive and customized solutions for OEMs. As a result, the majority of OEMs are collaborating with automotive ESOs to design, develop, and test new engines, transmissions, and designs, moving the global automotive engineering services market forward.

Connected cars have a number of benefits, including the potential to be safer and less harmful to the environment. They also give the vehicle business a greater opportunity to develop and strengthen customer relationships than ever before. 5G connectivity is the future of the auto industry, and it will further change the mobility dynamics.

Automotive engineering service market is projected to be driven by the increased need for improved connectivity solutions. However, the market is likely to be constrained by intellectual property (IP) restrictions. The automotive engineering services industry is predicted to increase in response to the growing need for improved connectivity solutions.

Automobile manufacturers and OEM corporations have invested enormous efforts in creating next-generation connected vehicles. In luxury sedans and SUVs, ultrasonic sensors, Iota devices, and high-definition cameras are standard. The numerous components work together to create an eco-system that can communicate with the outside world and share data in order to improve the in-car experience. Additionally, the data is used to assess the vehicle's condition and health in order to plan maintenance, which can assist avoid unexpected engine failures.

Global Automotive Engineering Service Market: Key Trends

·         More Use of Artificial Intelligence Will Help the Market to Grow

The application of artificial intelligence (AI) in automobile engineering is a growing trend. Helpful AI algorithms and controllers help provide a realistic driving-range estimation and optimize energy conservation in electric vehicles, resulting in the addition of additional driving range. Self-driving cars, which are becoming increasingly popular in the automotive industry, are likewise based on artificial intelligence.

·         Demand for Emission-Free Transportation Is Growing Which Will Aid the Market Expansion

The market for automotive engineering services is predicted to develop in response to rising demand for emission-free transportation. Carbon dioxide, methane, hydrofluorocarbons, and nitrous oxide are released into the atmosphere when fossil fuels like diesel and gasoline are used, causing climate change and driving demand for emission-free transportation mediums like electric vehicles. Demand for emission-free transportation is increasing, which reduces fossil fuel usage and greenhouse gas emissions. The automotive engineering services market is likely to be propelled by rising demand for emission-free transportation and increased awareness of emission-free transportation.

Global Automotive Engineering Service Market: Segment Assessment

Based by Vehicle Type

Passenger cars

Commercial vehicles

Based by Service Types

Designing

Prototyping

System integration

Testing

Others

Based by Location Type

On-shore

Off-shore

Based by Application

OEMs

Component suppliers

Others

OEMs segment dominates the market with the highest market share, and is expected to grow further in the upcoming years.

Global Automotive Engineering Service Market- Geographical Landscape

In term of geographic region, the Global automotive engineering service market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Asia-Pacific dominates the market with the highest market share. Presence of potential market leaders in the locale is one of the main considerations contributing toward the development of the Asia-Pacific market.

Global Automotive Engineering Service Market: Recent Developments

·         In June 2021, Bertrandt AG announced a partnership with HP Inc. to develop and implement digital manufacturing solutions for the automotive industry. The partnership aims to help automakers accelerate their digital transformation and improve their engineering and production processes.

·         In July 2021, Tata Technologies announced a collaboration with GKN Automotive to provide engineering and design services for GKN's driveline systems. The partnership aims to enhance GKN's product development capabilities and speed up time-to-market for new products.

·         In February 2021, AKKA Technologies announced the acquisition of CDS GmbH, a German-based engineering services provider specializing in digital product development. The acquisition aimed to strengthen AKKA's expertise in the automotive and aerospace industries.

Global Automotive Engineering Service Market: Key Companies

·         FEV Group

·         Alten GmbH

·         IAV GmbH

·         Bertrandt

·         ASAP Holding GmbH

·         EDAG Engineering GmbH

·         Horiba

·         M Plan GmbH

·         Altran

·         ESG Group

·         RLE International Group

·         Altair Engineering

·         Robert Bosch (ITK Engineering)

·         P3 Automotive GmbH

·         AKKA Technologies

·         Kistler Instrumente

·         P+Z Engineering GmbH

·         AVL List GmbH

·         Others

Global Automotive Engineering Service Market: Regional Scope              

North America

·         U.S.

·         Canada

·         Mexico

Europe

·         U.K.

·         Germany

·         France

·         Italy

·         Spain

·         Rest of Europe

Asia Pacific

·         China

·         India

·         Japan

·         South Korea

·         Australia

·         Rest of Asia Pacific

South America

·         Brazil

·         Argentina

·         Rest of South America

Middle East and Africa

·         Saudi Arabia

·         UAE

·         Egypt

·         South Africa

·         Rest of Middle East and Africa

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