Global Automotive Engineering Service Provider Market Size, Share, Growth Analysis, By Service(Engine, Chassis), By Application(Mechanical, Electrical & Electronics), By Vehicle Type(Passenger Car, Commercial Vehicle) - Industry Forecast 2024-2031

Global automotive engineering service provider market size was valued at USD 156.20 billion in 2022 and is poised to grow from USD 168.07 billion in 2023 to USD 301.99 billion by 2031, growing at a CAGR of 7.6% during the forecast period (2024-2031).

The growing demand for enhanced connectivity solutions, enabling various services such as remote diagnostics, smart infotainment, navigation, and passenger safety, is fueling an uptick in these solutions within the automotive industry. This surge is anticipated to contribute to robust growth opportunities in the automotive engineering services market over the projected period, thereby expanding its market size. These services play a pivotal role in the development, manufacturing, testing, and design of automotive components, as well as in the maintenance and diagnosis of mechanical, electrical, electronic, and software systems, ensuring optimal performance, size, and shape of vehicles. With a wide array of offerings including transmission and engine-related services, chassis modifications, and component upgrades, automotive engineering services are highly sought after. The integration of each component from concept to utilization is facilitated by these services, with the option for vendors to internally manage parts and fittings, known as in-house automotive engineering services, further propelling sales in this sector.

Top-down and bottom-up approaches were used to estimate and validate the size of the global automotive engineering service provider market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Engineering Service Provider Market Segmental Analysis

The global automotive engineering service provider market is segmented based on service, application, and vehicle type. By service, the market is segmented into engine, chassis, transmission, car and BIW, seating systems, cooling and HVAC, and interior and exterior trim. By application, the market is segmented into mechanical, electrical & electronics, software, and safety. By vehicle type, the market is segmented into passenger car, commercial vehicle, two-wheeler. Further, by regions, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Automotive Engineering Service Provider Market

The automotive industry is undergoing a significant transformation propelled by innovation in automotive engineering services, primarily spurred by the demand for advanced connectivity features. This shift has led car manufacturers to diversify into automotive engineering services, aiming to acquire new expertise and deliver vehicle software and electronic solutions that cater to the increasing demand for connectivity.

Restraints in the Global Automotive Engineering Service Provider Market

For numerous automotive companies, engaging automotive engineering service providers represents a substantial investment, and not all are inclined to allocate significant capital towards these services. The increasing reliance on advanced engineering technologies and the heightened demand for innovative engineering solutions are expected to drive up costs, thereby constraining the growth potential of the automotive engineering service provider market.

Market Trends of the Global Automotive Engineering Service Provider Market

The automotive industry is witnessing a surge in demand for advanced connected services, presenting promising prospects for automotive engineering service providers. With a predominant focus on remote monitoring and operation, automotive companies are keen on integrating such features into their latest vehicle models; for example, Audi's My Audi app and Audi Connect service highlight this trend. In the long term, success in developing connected services aligned with OEM standards is expected to be a significant area for automotive engineering service providers. Furthermore, the industry's shift towards electrification and heightened emphasis on vehicle safety are poised to further expand opportunities for market players in automotive engineering services.