Automotive Engineering Services Market by Service Type, Location, Vehicle Type, Engine Type, Application

Description

List of Tables

The Automotive Engineering Services Market was valued at USD 186.20 billion in 2023, expected to reach USD 202.61 billion in 2024, and is projected to grow at a CAGR of 10.16%, to USD 366.80 billion by 2030.

Automotive Engineering Services encompass a vast range of activities required to design, develop, test, and manufacture vehicles, focusing on aesthetics, functionality, and durability. These services are increasingly necessary as the automotive sector adapts to changing consumer preferences, regulatory requirements, and technological advancements. Applications include product design and styling, integration of electronics, simulation, testing, and manufacturing process optimization. End-use scope commonly spans OEMs, component suppliers, and aftermarket service providers. Key growth influences include the rising demand for electric vehicles (EVs), connected car technologies, autonomous driving capabilities, and sustainable manufacturing practices. The push toward green and energy-efficient solutions has created notable opportunities for innovative composite materials and improved battery technologies. Emerging markets in Asia-Pacific and Latin America present lucrative opportunities due to urbanization and increasing disposable incomes. However, limitations such as high costs of capital investment, rapid technological changes, and stringent regulatory environments pose challenges. Furthermore, the need for skilled engineers adept in the latest technologies is crucial yet difficult to fulfill, contributing to a talent gap. Innovation opportunities lie in areas like lightweight materials, advanced driver-assistance systems (ADAS), vehicle-to-everything (V2X) communication, and 3D printing for prototyping and production. Researching and developing shared mobility ecosystems and enhancing cybersecurity for connected vehicles are paths for business growth. The dynamic nature of the market requires flexibility and speed to adapt to technological advances and regulatory changes. As the market shifts toward a service-oriented model, companies should focus on partnerships and collaborations with technology firms to remain competitive. Awareness of legislative trends, especially in emissions and safety standards, is essential for strategic planning. By addressing these challenges and leveraging opportunities in technology and geography, companies can achieve sustainable growth in a rapidly evolving automotive landscape.

KEY MARKET STATISTICS
Base Year [2023]	USD 186.20 billion
Estimated Year [2024]	USD 202.61 billion
Forecast Year [2030]	USD 366.80 billion
CAGR (%)	10.16%

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving Automotive Engineering Services Market

The Automotive Engineering Services Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Rising demand for autonomous vehicles coupled with the growing automobile industry
- Stringent government policies and regulations for ICE vehicles to reduce vehicle emissions
- Increasing demand for advanced connectivity and advanced safety & security solutions
Market Restraints
- High cost of automotive engineering services with the use of advanced technologies
Market Opportunities
- Introduction of 5G networks in the automotive sector for real-time vehicle-to-vehicle communication
- Favorable investment landscape for the production of automotive
Market Challenges
- Concerns related to the intellectual property and patent rights for OEMs

Porter's Five Forces: A Strategic Tool for Navigating the Automotive Engineering Services Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the Automotive Engineering Services Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the Automotive Engineering Services Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the Automotive Engineering Services Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the Automotive Engineering Services Market

A detailed market share analysis in the Automotive Engineering Services Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the Automotive Engineering Services Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the Automotive Engineering Services Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Strategy Analysis & Recommendation: Charting a Path to Success in the Automotive Engineering Services Market

A strategic analysis of the Automotive Engineering Services Market is essential for businesses looking to strengthen their global market presence. By reviewing key resources, capabilities, and performance indicators, business organizations can identify growth opportunities and work toward improvement. This approach helps businesses navigate challenges in the competitive landscape and ensures they are well-positioned to capitalize on newer opportunities and drive long-term success.

Key Company Profiles

The report delves into recent significant developments in the Automotive Engineering Services Market, highlighting leading vendors and their innovative profiles. These include 3E Rapid Prototyping Ltd, AKKA Technologies SE, Altair Engineering Inc., ALTEN Group, ASM Technologies Limited, Aurora Innovation Inc., AVL List GmbH, Belcan, LLC, Bertrandt AG, BOLAB Systems GmbH, Capgemini SE, Continental AG, DEKRA SE, DesignTech Systems Pvt. Ltd., Ecolab, EDAG Engineering Group AG, FEV Group GmbH, Fidelis Engineering Associates, Gantner Instruments GmbH, GlobalLogic Inc. by Hitachi, Ltd., Grune Technica, Inc., Harman International Industries, Incorporated by Samsung Electronics Co., Ltd., HCL Technologies Limited, Horiba, Ltd., IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Intertek Group PLC, Larsen & Toubro Limited, LeddarTech Inc., Lucid Group, Inc., N-iX Ltd., Oliver Wyman, LLC, Onward Technologies Limited, P3 group GmbH, Pilot Systems International, Proterra Inc., ProtoCAM, RA Global Tech Solutions LLP, Ricardo PLC, Robert Bosch GmbH, Roush Enterprises, Inc., Sigma Thermal, System Controls Technology Solutions Pvt. Ltd., TAAL Tech India Private Limited, Tech Mahindra Limited, The Productivity Team, LLC, TUV Rheinland AG, Valmet Automotive PLC, Waymo LLC, Wipro Limited, and Zendrive India Private Limited.

Market Segmentation & Coverage

This research report categorizes the Automotive Engineering Services Market to forecast the revenues and analyze trends in each of the following sub-markets:

Based on Service Type, market is studied across Concept or Research, Designing, Prototyping, System Integration, and Testing.
Based on Location, market is studied across In-House and Outsource.
Based on Vehicle Type, market is studied across Commercial Vehicle and Passenger Car.
Based on Engine Type, market is studied across Electric Vehicle and Internal Combustion Engine.
Based on Application, market is studied across ADAS & Safety, Chassis, Connectivity Services, Electrical, Electronics & Body Controls, Interior, Exterior & Body Engineering, Powertrain & Exhaust, and Simulation.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-435571463178

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising demand for autonomous vehicles coupled with the growing automobile industry
  - 5.1.1.2. Stringent government policies and regulations for ICE vehicles to reduce vehicle emissions
  - 5.1.1.3. Increasing demand for advanced connectivity and advanced safety & security solutions
- 5.1.2. Restraints
  - 5.1.2.1. High cost of automotive engineering services with the use of advanced technologies
- 5.1.3. Opportunities
  - 5.1.3.1. Introduction of 5G networks in the automotive sector for real-time vehicle-to-vehicle communication
  - 5.1.3.2. Favorable investment landscape for the production of automotive
- 5.1.4. Challenges
  - 5.1.4.1. Concerns related to the intellectual property and patent rights for OEMs
5.2. Market Segmentation Analysis
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental

6. Automotive Engineering Services Market, by Service Type

6.1. Introduction
6.2. Concept or Research
6.3. Designing
6.4. Prototyping
6.5. System Integration
6.6. Testing

7. Automotive Engineering Services Market, by Location

7.1. Introduction
7.2. In-House
7.3. Outsource

8. Automotive Engineering Services Market, by Vehicle Type

8.1. Introduction
8.2. Commercial Vehicle
8.3. Passenger Car

9. Automotive Engineering Services Market, by Engine Type

9.1. Introduction
9.2. Electric Vehicle
9.3. Internal Combustion Engine

10. Automotive Engineering Services Market, by Application

10.1. Introduction
10.2. ADAS & Safety
10.3. Chassis
10.4. Connectivity Services
10.5. Electrical, Electronics & Body Controls
10.6. Interior, Exterior & Body Engineering
10.7. Powertrain & Exhaust
10.8. Simulation

11. Americas Automotive Engineering Services Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Automotive Engineering Services Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Automotive Engineering Services Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Jaguar Land Rover partners with Tata Technologies to accelerate the digital transformation of its industrial operations
- 14.3.2. L&T Technology Services Unveils CoE to Offer Suite of Automotive Solutions on AWS
- 14.3.3. Cognizant to acquire Mobica to enhance its IoT software engineering service offerings
- 14.3.4. VVDN strengthen its services portfolio with the addition of Automotive Engineering and Manufacturing Services for global markets
- 14.3.5. Hinduja Tech acquires UK-based DSD to offer EV engineering services, ET Auto
- 14.3.6. Continental Inaugurates new State-of-the-art Campus for its Technical Center in Bengaluru
- 14.3.7. Tech Mahindra Partners with Foxconn-initiated MIH Consortium to Offer Sustainable Automotive Engineering Solutions
- 14.3.8. Magna To Invest Over $120 Million For Setting Up New Engineering Centre In Bengaluru
- 14.3.9. L&T Partnership With BMW Group: L&T Technology Services bags 5-year infotainment deal from BMW Group
- 14.3.10. FEV Expands Development Capabilities with Launch of FEV.io Intelligent Mobility Software Brand
- 14.3.11. Ola to invest $100 mn in setting up a vehicle design, engineering centre in UK
14.4. Strategy Analysis & Recommendation

Companies Mentioned

1. 3E Rapid Prototyping Ltd
2. AKKA Technologies SE
3. Altair Engineering Inc.
4. ALTEN Group
5. ASM Technologies Limited
6. Aurora Innovation Inc.
7. AVL List GmbH
8. Belcan, LLC
9. Bertrandt AG
10. BOLAB Systems GmbH
11. Capgemini SE
12. Continental AG
13. DEKRA SE
14. DesignTech Systems Pvt. Ltd.
15. Ecolab
16. EDAG Engineering Group AG
17. FEV Group GmbH
18. Fidelis Engineering Associates
19. Gantner Instruments GmbH
20. GlobalLogic Inc. by Hitachi, Ltd.
21. Grune Technica, Inc.
22. Harman International Industries, Incorporated by Samsung Electronics Co., Ltd.
23. HCL Technologies Limited
24. Horiba, Ltd.
25. IAV GmbH Ingenieurgesellschaft Auto und Verkehr
26. Intertek Group PLC
27. Larsen & Toubro Limited
28. LeddarTech Inc.
29. Lucid Group, Inc.
30. N-iX Ltd.
31. Oliver Wyman, LLC
32. Onward Technologies Limited
33. P3 group GmbH
34. Pilot Systems International
35. Proterra Inc.
36. ProtoCAM
37. RA Global Tech Solutions LLP
38. Ricardo PLC
39. Robert Bosch GmbH
40. Roush Enterprises, Inc.
41. Sigma Thermal
42. System Controls Technology Solutions Pvt. Ltd.
43. TAAL Tech India Private Limited
44. Tech Mahindra Limited
45. The Productivity Team, LLC
46. TUV Rheinland AG
47. Valmet Automotive PLC
48. Waymo LLC
49. Wipro Limited
50. Zendrive India Private Limited