PUBLISHER: The Business Research Company | PRODUCT CODE: 1392470
PUBLISHER: The Business Research Company | PRODUCT CODE: 1392470
“Automotive Engineering Services Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive engineering services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive engineering services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The automotive engineering services market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Automotive engineering services encompass design services aimed at optimizing the manufacturing process to enhance the overall operational efficiency of vehicles. These services focus on incorporating advanced and innovative features related to comfort, infotainment, and safety through the integration of cutting-edge electronics into vehicles.
The primary vehicle types addressed by automotive engineering services include both passenger cars and commercial vehicles. Passenger cars, designed for transporting passengers, typically have fewer than eight seats, excluding the driver's seat. Various automotive engineering service types are involved, covering aspects such as concept/research, design, prototyping, system integration, and testing. These services can be provided on-shore and off-shore, spanning diverse applications like electrical and electronics, body controls, advanced driver-assistance systems (ADAS) and safety, chassis, connectivity services, powertrain and exhaust, interior and exterior, body engineering, and simulation.
The automotive engineering services market research report is one of a series of new reports from The Business Research Company that provides automotive engineering services market statistics, including automotive engineering services industry global market size, regional shares, competitors with an automotive engineering services market share, detailed automotive engineering services market segments, market trends and opportunities, and any further data you may need to thrive in the automotive engineering services industry. This automotive engineering services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.
The automotive engineering services market size has grown rapidly in recent years. It will grow from $242. 52 billion in 2023 to $267. 99 billion in 2024 at a compound annual growth rate (CAGR) of 10. 5%. The growth observed in the historic period can be ascribed to various factors, including the globalization of the automotive industry, the heightened complexity of vehicle systems, a focus on fuel efficiency and emissions reduction, the expansion of automotive electronics and software, and a demand for innovative vehicle designs and features.
The automotive engineering services market size is expected to see rapid growth in the next few years. It will grow to $396. 45 billion in 2028 at a compound annual growth rate (CAGR) of 10. 3%. The anticipated growth in the forecast period can be attributed to the rise of electric and autonomous vehicles, the accelerated adoption of connected car technologies, an increasing focus on sustainability and green engineering, the integration of advanced driver-assistance systems (ADAS), and the demand for personalized and user-centric automotive experiences. Key trends in the forecast period include the use of advanced technology, the embrace of digital twin technology for simulation and testing, collaboration for research and development in autonomous driving, the growing importance of cybersecurity in automotive engineering, and the use of artificial intelligence in design optimization and manufacturing.
The surge in demand for emission-less transportation is poised to drive the expansion of the automotive engineering services market. With increasing concerns about greenhouse gas emissions from traditional fossil fuels like diesel and gasoline, the call for emission-less transport options, notably electric vehicles, has escalated significantly. For instance, the sales of electric cars surged from 3 million in 2020 to 6. 6 million in 2021, signaling a doubling in demand. This shift toward emission-less transportation not only curtails fossil fuel consumption but also minimizes greenhouse gas emissions, amplifying the need for automotive engineering services to cater to these evolving transportation needs.
The escalating demand for passenger vehicles serves as a key catalyst propelling the growth trajectory of the automotive engineering services market. Passenger vehicles encompass a wide range of motorized transportation used for private or public transport purposes, and the rising demand for safety features like airbags, collision avoidance, and advanced driver-assistance systems (ADAS) correlates with the increased number of these vehicles on the road. Notably, in fiscal year 2021, sales of passenger vehicles surged by 13. 2% to 3. 07 million from 2. 71 million in the previous year, as reported by the Society of Indian Automobile Manufacturers (SIAM). Similarly, China witnessed a 4. 4% year-over-year increase in passenger car sales to 20. 15 million units in 2021, driven notably by the high demand for new energy vehicles (NEVs). Consequently, the rising demand for passenger vehicles directly fuels the growth of the automotive engineering services market.
The integration of artificial intelligence (AI) into automotive engineering emerges as a pivotal trend gaining traction within the industry. AI-powered algorithms and controllers play a crucial role in enhancing driving-range estimations and optimizing energy conservation in electric vehicles, thereby extending their driving range. Moreover, AI lies at the heart of self-driving cars, a burgeoning phenomenon within the automotive sector. For instance, a US-based automobile manufacturer, Ford, collaborated with Google in 2021 to leverage AI for various purposes, including enhancing customer experiences, accelerating product development, improving manufacturing and supply chain management, and implementing data-driven business models, showcasing the growing importance and integration of AI in automotive engineering.
Major companies operating in the automotive engineering services market are developing strategic partnerships. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in October 2022, Tech Mahindra, an Indian-based provider of digital transformation, consulting, and business re-engineering services and solutions, announced that it had partnered with the Foxconn-initiated MIH (Mobility in Harmony) Consortium, an open electric vehicle (EV) alliance initiated by Foxconn, a Taiwan-based electronics manufacturing company. The partnership will focus on developing sustainable mobility solutions and building the next generation of electric vehicles, autonomous driving solutions, and mobility service applications that can deliver value for stakeholders in the mobility industry.
In September 2023, HCL Technologies, an Indian-based multinational IT services and consulting company, acquired ASAP Group for $266. 49 million. Through this acquisition of ASAP and HCL Tech's own presence in the automotive space, the combined business will be a platform for growth in Germany and for further expansion into other key automotive markets in Europe, the Americas, and Japan. ASAP Group is a US-based automotive engineering services provider.
Major companies operating in the in the automotive engineering services market report are: Capgemini SE, IAV GmbH, Tech Mahindra Limited, AKKA Technologies Group, Bertrandt AG, Harman International Industries Inc., ALTEN Cresttek Engineering Solutions Pvt Ltd., L&T Technology Services Ltd., Fev Europe GmbH, AVL List GmbH, Ricardo plc, EDAG Engineering GmbH, Valmet Automotive Oyj, Onward Technologies Ltd., T-Net Japan Co. Ltd., Kistler Holding AG, Continental AG, semcon engineering uk limited, Robert Bosch GmbH, Altran India Pvt. Ltd., Tata Technologies Ltd., Altair Engineering Inc., HORIBA Ltd, MBtech Group GmbH, P3 Automotive GmbH, ASAP Holding GmbH, Link Engineering Company, Ansys Inc., EPAM Systems Inc., GlobalLogic, Hunter Engineering Company
Asia-Pacific was the largest region in the automotive engineering services market in 2023. The regions covered in the automotive engineering services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automotive engineering services market report are: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The automotive engineering services market consists of revenues earned by entities that are engaged in providing connectivity services, interior, exterior, and body engineering, powertrain and exhaust, simulation, battery development and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.