Market Size

The global automotive engineering services market size was valued at USD 157.6 billion in 2020 and is estimated to reach a value of USD 275.8 billion in 2027. The automotive engineering services market analysis shows that it will grow with a CAGR of 9.2% over the forecast period of 2021 to 2027.

Market Driver

Growing demand for advanced connectivity solutions may drives the market growth. The ESO market players are expected to benefit from the increasing focus of the automotive industry on manufacturing automobiles with 5 important trends, namely Autonomous, Electrified, Connected, Shared, and Yearly updated ('EASCY'). Engineering service providers are focusing on providing solutions that support these developments in order to give their clients a competitive advantage. Altran, for example, has released a fronthaul architecture based on Intel Field - Programmable Gate array (FPGAs) that will aid network equipment and wireless carrier manufacturers in aggregating higher scale 5G fronthaul deployment. Over the last few years, de-verticalization (process of functions from a vertically integrated sector) has gained momentum. When OEMs de-verticalize, they hand over the production and design of their products to ESPs. This phenomenon has benefited the automotive services outsourcing industry significantly, as it has aided in the creation of a more global supply base with newly built assembly plants, resulting in regional expansion of ESO companies. Modular outsourcing has also grown in popularity as automakers demand standardised interfaces and self-contained functional units in their vehicles. With the introduction of modular designs, automotive OEMs can now outsource complicated self-contained components as well as procure services for simpler vehicle parts. Due to the complexities of powertrain design, transmission systems and, engine design. Some OEMs prefer to fabricate their own product in-house at their main centres or captive destinations rather than using ESPs. Indeed, the OEMs have been forced to build their own manufacturing units in off-shore locations due to growing concerns about the exposure of intricate vehicle designs and intellectual property rights. The shift in business models, where manufacturers are now developing products in-house, is expected to be a stumbling block to the market's otherwise healthy growth.

Segment Outlook

Based on service type, the market is segmented into prototyping, designing, system integration, and testing. Designing segment is anticipated to be the fastest service type in the forecast period. By application, segmentations are electronics and body controls, adas and safety, chassis, connectivity services, powertrain and exhaust, interior, exterior, and body engineering, and simulation. The electrical, electronics, and body controls is expected to have a higher demand in vehicle development, which is expected to drive the segment growth. Based on location the market is classified into on-shore and off-shore.

Regional Outlook

The automotive engineering services market research report provides an in-depth analysis of the industry, incorporating quantitative and qualitative data. It includes historical, present, and forecast data of the global market for automotive engineering services by segment. Furthermore, it provides market size and forecast estimates for five regions, namely Asia Pacific, North America, Europe, Central & South America, Middle East, and Africa from 2015 to 2027. The market for automotive engineering services is segmented by region and then by country and segment. The Asia Pacific region is the fastest-growing market for automotive engineering services owing to the high adoption of electric passenger cars, particularly in China. The report analyzes supply and demand-side factors affecting automotive engineering services market and then evaluates market dynamics affecting the market in coming years. Qualitative insights available in this report are opportunities, drivers, restraints, and future trends.

Company Profile Outlook

Key companies profiled in this market are Harman International (United States), Capgemini (France), Ricardo (United Kingdom), AVL (Austria), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), ALTEN (France), HCL Technologies (India), and Bertrandt AG (Germany). However, we have also considered other companies for detailed primary interviews.

Research Methodology

Automotive engineering services market report consists of market analysis including both primary and secondary research. Primary research comprises of the interaction between manufacturers, industry experts, channel partners, and end users, while the secondary research presents an analytical interpretation of relevant published databases, which contains details like company annual reports, and financial reports, white papers, and purchased databases. For single, team and corporate user license, we will provide 15% free customization of the report. However, alternatively, if you are looking for additional data or insight related to the scope of the report, you may purchase the "Customized Research License". Please put an enquiry for the pricing details.

About Us

Market Insight Solutions is a leading market research firm which caters to a diverse portfolio of research campaigns. We are one of the fastest growing research organization led by an extensive team of individuals. Our team has individuals with more than 10 years of experience in diverse research domains. Our strategic insights aim at providing credible and practical solutions to meet the specific requirements of our clients. We offer market studies on basis of facts across cross domains.

Segments covered in the report

Automotive Engineering Services Market Size and Outlook by Service Type

• Prototyping
• Designing
• System Integration
• Testing

Automotive Engineering Services Market Size and Outlook by Application

• Electrical, Electronics and Body Controls
• ADAS and Safety
• Chassis
• Connectivity Services
• Powertrain and Exhaust
• Interior, Exterior, and Body Engineering
• Simulation

Automotive Engineering Services Market Size and Outlook by Location

• On-shore
• Off-shore

Automotive Engineering Services Market Size and Outlook by Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Russia
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Indonesia
  • South Korea
  • Australia
• Central & South America
  • Brazil
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa

Companies Profiled in this Report

• Harman International (United States)
• Capgemini (France)
• Ricardo (United Kingdom)
• AVL (Austria)
• IAV Automotive Engineering (Germany)
• Tech Mahindra (India)
• AKKA Technologies (Belgium)
• ALTEN (France)
• HCL Technologies (India)
• Bertrandt AG (Germany)

Actionable Outcomes

Our Automotive Engineering Services Market Report offers a thorough assessment of estimations and projections on the market dynamics. Further, it helps in the implementation of these results as they show tangible benefits to business stakeholders and industry entities decisions as leaders.

Strategic Planning

Every business needs to understand how their product will grow in the forthcoming years. With the current uncertainness due to the COVID-19 scenario, this analysis becomes significant to understand past disruptions and boost the preparedness for the next steps of decision. We at Market Insight Solutions are trying to break down the complex market for the business leaders through strategic insights and resilience in unpredictable situations.

Highlights of the report:

• COVID-19 impact on automotive engineering services market size
• Automotive engineering services market size, drifts, drivers and opportunities
• Analyzing the regional market for the growth factors, estimated analysis and its penetration to the global market
• Automotive engineering services market size in United States
• Understanding the dynamics of the parent market
• Prime fluctuations of the market dynamics
• Evaluation of the market opportunities
• Historical, current, and projected automotive engineering services market size from the standpoint of both value and volume
• Market segmentation and comprehensive analysis in the second or third level
• Reporting and evaluation of recent industry developments
• Analysis of market share and developments
• Detailed company profiling of leading companies
• Opportunities to newer markets in global and regional markets
• Analyzing the trajectory line of the business
• Analyze automotive engineering services market share
• Measures to consider for automotive engineering services market