The automotive engineering services market in 2022 was valued at USD 1.46 billion and is estimated to reach USD 1.6 billion in 2023. Future Market Insights reports that the automotive engineering services market will likely expand at a CAGR of 7.17% between 2023 and 2033, reaching USD 3.2 billion by 2033.
A surge in enhanced connectivity solutions is increasing due to its ability to offer various services, like navigation, smart infotainment, passenger safety, and remote diagnostics. The automotive engineering services market is anticipated to show promising growth prospects during the forecast period, expanding the automotive engineering services market size.
Largely used in servicing and diagnostic of mechanical, electrical, electronics and software systems, developing, fabricating, testing, and designing any component of a vehicle. This gives the best shape, size, and model to the vehicle. The automotive engineering services include multiple services like transmission and engine-related services, including changing the chassis and upgrading multiple components, fueling the sales of automotive engineering services.
Automotive engineering services bring the concept phase to the use phase, integrating each component with the other. These components and fittings can also be outsourced or done by the vendor themselves, also known as in-house automotive engineering services. This pushes the sales of automotive engineering services.
| Attributes | Details |
|---|---|
| Projected Forecast Value (2022) | USD 1.46 billion |
| Projected Forecast Value (2023) | USD 1.6 billion |
| Projected Forecast Value (2033) | USD 3.2 billion |
| Growth rate | 7.17% CAGR |
| Forecast period | 2023 to 2033 |
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The global automotive engineering services market expanded at a CAGR of 6.42% between 2018 and 2022. Growth forecasts remain optimistic, with the market predicted to exhibit a CAGR of 7.17% between 2023 and 2033.
Growth in the technological skills of Engineering Service Providers (ESPs) for delivering research and development (R&D) and product innovation in their offerings for vehicle positioning, connected automobiles, and guidance systems is anticipated to raise the automotive ESO market growth.
Boost in the initiatives taken by governments to help in the deployment of green vehicles for the reduction of harmful gas discharges is also expediting the automotive ESO market growth.
Demand for Advanced and Autonomous Connectivity Features is Influencing Innovation Intensely
The demand for advanced and autonomous connectivity features is influencing innovation intensely for automotive engineering services, in turn, changing the face of the automotive industry. To be in line with the increasing demand for connectivity, vehicle manufacturers are developing and acquiring new expertise in vehicle software and electronic services, thereby venturing into the automotive engineering services field.
Increase in the Demand for Automotive Engineering Services
In the global automotive engineering services market, telematics is considered to be the prominent growing trend owing to the expansion of vehicle testing, connected cars, and integration of AI (Artificial Intelligence), which has increased the demand for automotive engineering services.
Smart infotainment, parking assist services, and vehicle diagnostic services enable more than partial control of a vehicle. Therefore, over the forecast period, connectivity services are expected to gain significant traction and demand for automotive engineering services.
The growing consumer demand for enhanced and reduced-emission vehicles is expected to compel vehicle manufacturers to redesign the exhaust powertrain system. Outsourcing automotive engineering services to emerging markets is becoming more popular
Principal Consultant
| Region/Country | India |
|---|---|
| Key Growth Factors |
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| Key Statistics | Estimated to develop a 6.8% CAGR from 2023 to 2033. |
| Region/Country | China |
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| Key Growth Factors |
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| Key Statistics | Anticipated to expand at a CAGR of 7.2% from 2023 to 2033. |
| Region/Country | North America |
|---|---|
| Key Growth Factors |
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| Key Statistics | Captured a market share of 43.2% in 2022. |
| Region/Country | Japan |
|---|---|
| Key Growth Factors |
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| Key Statistics | Forecasted at a market share of 10.4% from 2023 to 2033. |
| Region/Country | Europe |
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| Key Growth Factors |
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| Key Statistics | Bolstered at a market share of 48.2% in 2022. |
| Category | Application |
|---|---|
| Sub Category | Powertrain and Exhaust |
| Key Growth Factors |
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| Key Statistics | Captured a market share of 78.2% in 2022. |
| Category | Service |
|---|---|
| Sub Category | Prototype Segment |
| Key Growth Factors |
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| Key Statistics | Forecasted a market share of 56.2% in 2022. |
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The key players in the automotive engineering services market are focusing on mergers and collaborations that are fueling the sales of Automotive engineering services.
Key players in the automotive engineering services market include FEV Group GmbH, IAV, Ricardo, AVL, ALTEN Group, Bertrandt, ALTRAN, and L&T Technology.
Recent Market Developments:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 7.17% from 2023 to 2033 |
| Base year for estimation | 2022 |
| Historical data | 2018 to 2022 |
| Forecast period | 2023 to 2033 |
| Quantitative units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis |
| Segments Covered | Services, Application, Location, Vehicle Type & Region |
| Regional scope | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa |
| Country scope | United States; Canada; Brazil; Mexico; Rest of Latin America; Germany; United Kingdom; France; Spain; Italy; Rest of Western Europe; Poland; Russia; Czech Republic; Romania; Rest of Eastern Europe; India; Bangladesh; Australia; New Zealand; Rest of South Asia and Pacific; China; Japan; South Korea; GCC countries; South Africa; Israel; Rest of MEA |
| Key companies profiled | FEV Group GmbH; IAV; Ricardo; AVL; ALTEN Group; Bertrandt; ALTRAN; L&T Technology; Capgemini Service SAS; T-NET JAPAN Co., Ltd.; DesignTech Systems.; Tech Mahindra Limited; EDAG Engineering GmbH; Horiba, Ltd. |
| Customization and Pricing | Available on request |
The market is expected to be valued at USD 1.6 billion in 2023.
FEV Group GmbH, IAV, and Ricardo, are the leading automotive engineering services market players.
The automotive engineering services market is expected to reach USD 3.2 billion by 2033.
Innovation and technology advancements demand propel the automotive engineering services market.
Powertrain and exhaust is the leading segment in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service Type 5.1. Testing & Diagnostic 5.2. System Integration 5.3. Designing 5.4. Prototyping 5.5. Research 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Applications 6.1. ADAS & Safety 6.2. Body & Chassis 6.3. Powertrain & Exhaust 6.4. Interior, Exterior & Body Engineering 6.5. Electrical, Electronics & Body Controls 6.6. Connectivity Services 6.7. Simulation 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Location 7.1. Outsourced Services 7.2. In-house Services 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 8.1. Passenger Cars 8.2. Light Commercial Vehicles 8.3. Heavy Commercial Vehicles 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. FEV Group GmbH 19.2. IAV 19.3. Ricardo 19.4. AVL 19.5. ALTEN Group 19.6. Bertrandt 19.7. ALTRAN 19.8. L&T Technology 19.9. Capgemini Service SAS 19.10. T-NET JAPAN Co., Ltd. 19.11. DesignTech Systems. 19.12. Tech Mahindra Limited 19.13. EDAG Engineering GmbH 19.14. Horiba, Ltd. 20. Assumptions & Acronyms Used 21. Research Methodology
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Automotive Engineering Services Market
