PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1618205
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1618205
The Global Automotive Engineering Services Market, valued at USD 164.9 billion in 2023, is anticipated to grow at a steady 8.2% CAGR from 2024 to 2032. The drive toward sustainability and fuel efficiency is a major catalyst for market growth, as both consumers and manufacturers emphasize reducing emissions and enhancing fuel economy. Lightweight materials, including advanced composites and high-strength steel, are becoming integral to vehicle design as they reduce overall weight, which in turn boosts fuel efficiency and cuts emissions. This trend increases the demand for specialized engineering services in material selection, structural analysis, and design optimization. The rising trend of vehicle customization and personalization is another key factor bolstering the automotive engineering services market.
As consumers seek unique features tailored to their tastes-like custom interiors, cutting-edge infotainment, and performance tweaks-automakers invest more in engineering services that allow for adaptable design and production processes. To meet these evolving needs, engineering service providers are offering modular vehicle architecture solutions and advanced software customization, which enable manufacturers to adapt to diverse customer requirements. The market is segmented by location into in-house and outsourced engineering services. In 2023, the in-house segment dominated with over 55% of the market share and is projected to surpass USD 185 billion by 2032. Many automotive companies favor in-house engineering to maintain control over critical aspects of design, development, and testing, which ensures alignment with their standards and facilitates rapid adjustments based on real-time feedback.
In-house teams also support improved collaboration across various departments like R&D, production, and marketing, which enhances innovation and operational efficiency. By vehicle type, the market is divided into passenger and commercial vehicles, with the passenger car segment holding around 64% of the market share in 2023. The growing global demand for personal mobility drives significant production and innovation in this segment. As manufacturers accelerate investment in electric and autonomous vehicle technologies, the need for extensive engineering services in development, testing, and compliance rises. Additionally, stringent environmental and safety regulations push companies to seek comprehensive engineering solutions to meet evolving standards.
Market Scope | |
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Start Year | 2023 |
Forecast Year | 2024-2032 |
Start Value | $164.9 Billion |