The rising demand for vehicle & passenger safety features, connectivity services, and technological advancements in the automotive industry are driving the growth of automotive engineering services market. The automotive engineering services market is projected to grow from USD 153.1 billion in 2019 to USD 384.6 billion by 2027, at a CAGR of 12.2%. Factors such as the increasing demand for connected vehicles, increasing EV sales, and adoption of advanced technologies are expected to boost the market. However, high investment risk and increasing competition are the key challenges in the automotive engineering services market.
Increasing emphasis on zero-emission vehicles is likely to propel the growth of the market during the forecast period. Increasing concerns over air pollution and global warming have forced the governments of several countries to enforce strict emission policies and regulations for ICE vehicles.Increasing adoption of electric vehicles is expected to change the outlook of the automotive engineering services market.
More EV sales would accentuate the need to develop new battery technologies, new chassis and exterior designs, and advanced transmission systems for these vehicles.EV manufacturers such as Tesla, Nissan, and BAIC outsource design and development of new technologies and solutions to tier 1 engineering companies.
This trend is likely to grow with the rise in EV sales and would drive the automotive engineering services market during the forecast period.
Asia Pacific is expected to register the highest growth during the forecast period. The Asia Pacific region comprises rapidly emerging economies such as China and India, along with developed nations such as Japan, and is the largest market for automotive.In recent years, the region has emerged as a hub for automobile production.
The key drivers for the automotive engineering services market in the region are the growing concerns about rising emission and traffic congestions.Countries such as China, India, and Japan are taking initiatives to reduce emission by adopting hybrid, plug-in, fuel cell, and battery electric vehicles.
Japan has proposed strict guidelines to reduce carbon emission for passenger cars by 2020.The rising demand for clean, safe, and smart mobility in China, India, and Japan augurs well for the growth of automotive engineering services.
Also, the growth of the automotive engineering services market can be attributed to increasing investments by regional OEMs such as BYD, Toyota, Honda, and Nissan.
Europe is expected to dominate the market during the forecast period. Europe is the largest market for automotive engineering services in 2019 but will be taken over by Asia Pacific by 2027.Europe is a major hub for several renowned automotive engineering service providers such as FEV, IAV, AVL, Ricardo, Alten, and others.
According to the European Commission, there are about 180 automobile facilities across the EU, and the sector is the largest investor in R&D.European automakers such as Volkswagen, Volvo, and Daimler AG invest heavily in R&D activities.
Germany is estimated to be the largest market in the region. The rising vehicle production and high investments in R&D by car manufacturers and engineering service providers would fuel the demand for engineering services in the region.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in the automotive engineering services market. • By Company Type: OEMs - 44%, Tier I - 49%, and Tier II - 7%, • By Designation: C Level - 39%, D Level - 46%, and Others - 15% • By Region: North America - 34%, Europe - 43%, Asia Pacific - 18%, and Rest of the World- 5%
The automotive engineering services market comprises major manufacturers such as FEV (Germany), IAV Automotive Engineering (Germany), Ricardo (UK), AVL (Austria), Alten (France), Bertrandt AG (Germany), Altran (France), L&T Technology Services (India), and many others.
Research Coverage: The study covers the automotive engineering services market across various segments.It aims at estimating the market size and future growth potential of this market across different segments such as service type, application, location, vehicle type, and region.
The study also includes an in-depth competitive analysis of key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.
Key Benefits of Buying the Report: The report will help leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall automotive engineering services market.This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
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