The global automotive engineering services market in 2022 was USD 1.46 Billion and is estimated to be USD 1.6 Billion in 2023. According to FMI, reports mentioned that the automotive engineering services market will expand at a CAGR of 7.17% between 2023 and 2033, totaling around USD 3.2 Billion by 2033.
The Automotive Engineering Services Market is experiencing significant growth driven by several factors, including increasing vehicle complexity, rising demand for electric and autonomous vehicles, and the need for innovative engineering solutions to meet regulatory requirements and consumer expectations. Automotive engineering services encompass a wide range of activities, including vehicle design, development, testing, validation, and manufacturing support, provided by engineering firms, consulting companies, and automotive suppliers to automakers worldwide.
One of the primary drivers of this market is the increasing vehicle complexity and the growing need for specialized engineering expertise. Modern vehicles are equipped with advanced technologies such as electrification, connectivity, and automation, which require sophisticated engineering solutions to design, integrate, and optimize. Automotive engineering services providers play a crucial role in helping automakers navigate the complexities of vehicle development, ensuring compliance with safety, performance, and regulatory standards while meeting customer demands for innovative features and functionalities.
Moreover, the rising demand for electric and autonomous vehicles is driving the need for specialized engineering services tailored to these emerging technologies. Electric vehicles (EVs) require unique engineering solutions for battery design, powertrain optimization, thermal management, and charging infrastructure integration. Similarly, autonomous vehicles (AVs) require advanced sensor fusion, perception algorithms, mapping technologies, and safety validation processes to enable safe and reliable autonomous operation. Automotive engineering services providers are partnering with automakers and technology companies to develop and deploy these next-generation vehicles, leveraging their expertise in vehicle design, software development, and systems integration.
Key Takeaways from the Market Study:
- The global automotive engineering services market expanded at a CAGR of 6.42% between 2018 and 2022.
- India is forecasted to develop a 6.8% CAGR from 2023 to 2033.
- China is anticipated to expand at a CAGR of 7.2% from 2023 to 2033.
- North America has captured a market share of 43.2% in 2022.
- European market bolstered at a market share of 48.2% in 2022.
- Under the service segment, prototypes were registered at a market share of 56.2% in 2022.
“Demand for advanced and autonomous connectivity features is influencing innovation intensely and is one of the major key drivers of the automotive engineering services market”, commented a Future Market Insights analyst.
Market Competition:
Companies aim to develop cutting-edge solutions during the entire life cycle of a product, from the design and inception phase to the end of its service life. They also strategically locate their main factories in emerging markets to make it ideal to service the developing markets.
Key companies profiled in the Automotive Engineering Services Market:
- FEV Group GmbH
- IAV
- Ricardo
- AVL
- ALTEN Group
- Bertrandt
- ALTRAN
- L&T Technology
- Capgemini Service SAS
- T-NET JAPAN Co., Ltd.
Key Segments Profiled in Automotive Engineering Services Market:
By Service Type:
- Testing & Diagnostic
- System Integration
- Designing
- Prototyping
- Research
By Applications:
- ADAS & Safety
- Body & Chassis
- Powertrain & Exhaust
- Interior, Exterior & Body Engineering
- Electrical, Electronics & Body Controls
- Connectivity Services
- Simulation
By Location:
- Outsourced Services
- In-house Services
By Vehicle Type:
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- Middle East & Africa
Read More: https://www.futuremarketinsights.com/reports/automotive-engineering-services-market