The global automotive engineering services market is expected to grow at a CAGR of around 12.3% from 2019 to 2026 and expected to reach the market value of around 352 billion by 2026.
Automotive engineering is the activity of designing and constructing automobiles with the combination of mechanical, electrical, electronic, software and safety engineering. Automotive engineering services are provided for designing and testing brake systems, engines, safety mechanisms, fuel technologies and transmission among others. Furthermore, the automotive engineering services market is segmented into service type, application, location, vehicle type, and regions. The service type is further segmented into concept/research, designing, prototyping, system integration, and testing.
The global automotive engineering market is particularly growing owing to the increasing demand for advanced connectivity solutions. The increasing carbon footprints result in increasing environmental concern, which in turn rising adoption of EVs and shared mobility for a greener environment is accelerating the market value. Increasing tie-ups between automotive OEMs and suppliers, along with increasing spending on R&D by global companies is further accelerating market growth. The governments of several countries are enforcing strict emission policies and regulations for ICE vehicles are an important factor propelling market growth. In addition, telecom and software companies are also investing in autonomous and connected car verticals, which are further expected to stimulate market value.
On the flip side, Intellectual Property (IP) constraint and shifting business model are expected to hamper the growth over the forecast period. Whereas, standardization of safety features and rising demand for autonomous vehicles is anticipated to create potential demand over the forecast period. In addition to these, rising demand for outsourcing of automotive engineering services is further expected to create potential demand over the forecast period.
By application, the connectivity services are projected to be the fastest-growing segment throughout the forecast period. The increasing autonomous vehicle testing practices coupled with the advancements in AI technology with the introduction of 5G connectivity in the automotive is also boosting the segment growth. Vehicle diagnostics, parking assistance, smart infotainment, and diagnostics are some of the features associated with the connectivity services, which are further expected to expand market share over the forecast period.
In-house automotive engineering services based on location are expected to register the highest growth during the forecast period. The segment is expected to gain positive growth due to the increasing preference of Original Equipment Manufacturer (OEM) for In-house development of complicated procedures including engine design, powertrain design, and transmission systems. In addition to these, the designs and optimization of automotive parts differ from one OEM to another for the same concern, it is preferred to be carried in-house for better results. These are some of the factors anticipated to augment demand over the forecast period from 2019 to 2026.
On the basis of vehicle type, passenger car is projected to experience the fastest growth over the forecast period. The increasing demand for autonomous vehicles and simultaneously rising concern for environmental conditions such as air pollution and global warming are further boosting the growth of the segment over the forecast period.
The market research study on “Automotive Engineering Services Market– Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 – 2026”, offers a detailed insights on the global Automotive Engineering Services market entailing insights on its different market segments. Market dynamics with drivers, restraints and opportunities with their impact are provided in the report. The report provides insights on global automotive engineering services market, its service type, application, location, vehicle type and major geographic regions. The report covers basic development policies and layouts of technology development processes. Secondly, the report covers global automotive engineering services market size and volume, and segment markets by service type, application, location, vehicle type and geography along with the information on companies operating in the market. The automotive engineering services market analysis is provided for major regional markets including North America, Europe, China, Southeast Asia, Japan and India followed by major countries. For each region, the market size and volume for different segments has been covered under the scope of report.
On the basis of region, the market is segmented across the regions of North America, Europe, Latin America, Asia Pacific and Middle East and Africa. From the aforementioned regions, Europe is anticipated to grow at a faster pace during the forecast period owing to the increasing demand for refined and low emission vehicles. The confirmation of the objective for reducing greenhouse gas emission to 80-95% by 2050 is further favoring the market growth. The increasing investment in R&D by global players in the region is another factor boosting the market value.
The players profiled in the report include Harman, Capgemini, AVL, Bertrandt AG, Alten Cresttek, L&T Technology Services, FEV, Akka Technologies, HCL Technologies, IAV Automotive Engineering, Altran, Ricardo, and Tech Mahindra. The major manufacturers are involved in mergers and acquisitions, partnerships and new product development for the expansion of market share.
Market By Service Type
Market By Application
Market By Location
Market By Vehicle Type
Market By Geography
Automotive engineering services are provided for designing and testing brake systems, engines, safety mechanisms, fuel technologies and transmission among others.
Factors such as the increasing demand for advanced connectivity solutions restrain the automotive engineering services market growth.
According to Acumen Research and Consulting, the automotive engineering services market value is anticipated to be worth around US$ 352 billion in 2026.
The automotive engineering services market is anticipated to grow over 12.3% CAGR during the forecast period 2019 to 2026.
North America held maximum share in 2018 for automotive engineering services market.
Europe is projected to grow at a fast pace during forecast period in the automotive engineering services market.
Harman, Capgemini, AVL, Bertrandt AG, Alten Cresttek, L&T Technology Services, FEV, and Akka Technologies are the top players operating in the automotive engineering services market.