Global Automotive Engineering Services Market Insights Forecasts to 2033

• The Global Automotive Engineering Services Market Size was Valued at USD 167.81 Billion in 2023
• The Market Size is Growing at a CAGR of 8.05% from 2023 to 2033
• The Worldwide Automotive Engineering Services Market Size is Expected to Reach USD 364.02 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

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The Global Automotive Engineering Services Market Size is Anticipated to Exceed USD 364.02 Billion by 2033, Growing at a CAGR of 8.05% from 2023 to 2033.

 

Market Overview

Automobile engineering services are mostly used to develop, design, and prototype automobile parts. These services also involve system integration, virtual testing, and the production of passenger and commercial vehicles. These services are designed to improve manufacturing while reducing unnecessary costs. It includes services such as analyzing, developing, designing, prototyping, system integration, and testing specific systems or vehicle parts from concept to production. It has three major functions: production, development, and manufacture. The service type may include mechanical, safety, software, electrical electronics and body controls, as well as interior, exterior, and body engineering solutions for automotive design. These technical solutions optimize the manufacturing process to increase the company's operational cycle while maintaining vehicle quality. For instance, autonomous vehicles benefit persons who are unable to drive due to a disability or advanced age by providing a more convenient form of transportation. Ford, for example, is a global leader in the development of self-driving cars. By the end of 2023, it intends to have fully autonomous vehicles in operation. As demand for self-driving cars grows, the market for automotive engineering services is likely to expand dramatically. OEMs and AES providers have established R&D facilities around the world to meet the increasing demand for automotive engineering services in the global automotive market. The automotive engineering services market is expected to develop as technology advances, including linked mobility, ADAS and safety features, and new-age battery technologies, among others.

 

Report Coverage

This research report categorizes the market for the global automotive engineering services market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global automotive engineering services market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global automotive engineering services market.

 

Driving Factors

The next generation of connected vehicles has received significant investment from automotive OEMs and Tier 1 partners. High-end sedans and SUVs commonly include IoT devices, ultrasonic sensors, and high-definition cameras. These numerous components work together to establish an ecosystem capable of communicating with the outside world and sharing data to enhance the in-car experience. An onboard computer interprets the data to provide a variety of tasks, including seamless navigation and personalized infotainment systems. The data can also be used to schedule maintenance and assess the status and health of the vehicle, as well as predict engine problems.

 

Restraining Factors

The automotive sector is becoming increasingly reliant on computer technologies to deliver increased performance and a variety of innovative features. As a result, higher car connectivity leads to increased security constraints, which might have an impact on vehicle operation, limiting market growth.

 

Market Segmentation

The global automotive engineering services market share is classified into type, location, and application.

 

• The mechanical segment is expected to hold the largest share of the global automotive engineering services market during the forecast period.   

Based on the type, the global automotive engineering services market is categorized into mechanical, embedded, and software. Among these, the mechanical segment is expected to hold the largest share of the global automotive engineering services market during the forecast period. Manufacturers can get accurate outcomes in quicker production periods by incorporating prototyping approaches into mechanical manufacturing-related services, lowering extra expenses. Given the continued trend of end-user convenience, automobile manufacturers are investing in expanding their production practices to keep up, which is why mechanical vehicles are likely to dominate in the future.

 

• The in-house segment is expected to grow at the fastest CAGR during the forecast period.   

Based on the location, the global automotive engineering services market is categorized into in-house and outsource. Among these, the in-house segment is expected to grow at the fastest CAGR during the forecast period. Major Original Equipment Manufacturers (OEMs) prefer to keep complicated automotive engineering services such as powertrain design and engine and gearbox systems for in-house development. These designs and optimizations range from one OEM to the next, necessitating a variety of procedures and specializations that can be performed internally for better results. It can also keep the design guidelines confidential. Data security for technical breakthroughs and automobile designs contributes to the market's supremacy

 

• The body engineering segment is expected to hold a significant share of the global automotive engineering services market during the forecast period.

Based on the application, the global automotive engineering services market is categorized into body engineering, chassis engineering, powertrain engineering, safety systems, infotainment systems, and others. Among these, the body engineering segment is expected to hold a significant share of the global automotive engineering services market during the forecast period. Owing to the growing use of EV technologies. Furthermore, the automobile industry has placed a greater emphasis on the integration of lightweight body materials into cars to reduce overall weight and improve aerodynamic ratios.

 

Regional Segment Analysis of the Global Automotive Engineering Services Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

Asia Pacific is projected to hold the largest share of the global automotive engineering services market over the forecast period.

 

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Asia Pacific is projected to hold the largest share of the global automotive engineering services market over the forecast period. This is attributed to China's rapid adoption of electric vehicles for personal mobility. Government policies aimed at minimizing or reducing emissions and promoting the use of green technology are projected to drive market growth throughout the forecast period. Factors driving the Asia Pacific automotive engineering services market include increased vehicle manufacturing, rising luxury vehicle demand, expanding electric vehicle sales, and technological advancements. The Asia-Pacific region contains both industrialized countries like Japan and South Korea, as well as rapidly growing economies like China and India. These countries are recognized as the largest automobile production markets, and the region has recently emerged as an industry hub. The automotive engineering services industry in the region is developing due to increased automotive demand and production, as well as growing concerns about rising CO2 emissions and traffic congestion.

 

Europe is expected to grow at the fastest CAGR growth of the global automotive engineering services market during the forecast period. This region is seeing an increase in electric vehicle production. The continued partnership between engineering service providers and automobile manufacturers is expected to put the country on top. 

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global automotive engineering services market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Harman International
• FEV Group
• L&T Technology Services Ltd.
• Robert Bosch GmbH
• Continental AG
• Bertrandt AG
• Capgemini Engineering
• AVL
• EDAG Engineering GmbH
• IAV GmbH
• Others

 

Key Market Developments

• On February 2024, L&T Technology Services Limited, a pioneering digital engineering and R&D services firm, announced a strategic alliance with BlackBerry, a trusted security software and services provider. The cooperation will employ BlackBerry® QNX® automotive software solutions to allow the creation of novel Software Defined Vehicles (SDVs) for global Original Equipment Manufacturers (OEMs).

 

• In July 2023, HCLTech announced the acquisition of ASAP Group, a German automotive engineering and service supplier, for EUR 251 million. The company bought a 100% ownership in the ASAP Group and intends to improve its market position in mobility areas such as autonomous driving, e-mobility, and connectivity.

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global automotive engineering services market based on the below-mentioned segments: 

 

Global Automotive Engineering Services Market, By Type

• Mechanical
• Embedded
• Software

 

Global Automotive Engineering Services Market, By Location

• In-house
• Outsource

 

Global Automotive Engineering Services Market, By Application

• Body Engineering
• Chassis Engineering
• Powertrain Engineering
• Safety Systems
• Infotainment Systems
• Others

 

Global Automotive Engineering Services Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa