Automotive Engineering Services Market

Automotive Engineering Services Market Outlook

The automotive engineering services market is likely to strengthen its hold in the global market at a moderate CAGR of 8.6% during the forecast period. The global market holds a forecasted revenue of US$ 166.16 Bn in 2022 and is likely to cross US$ 348 Bn by the end of 2032.

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.

What are the Key Drivers and Restraints to the Automotive Engineering Services Market

The demand for advanced and autonomous connectivity features is influencing innovation intensely for the 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.

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, the connectivity services are expected to gain significant traction and demand for automotive engineering services.

Also, day by day, the number of tier-1 OEMs offering automotive engineering services is expanding. For instance, in 2018, Huawei Technologies Co., Ltd., and AUDI AG entered into a partnership to develop connectivity features for vehicles.

In the first quarter of 2019, the Renault-Nissan-Mitsubishi coalition announced the launch of Alliance Intelligent Cloud, which will offer connectivity services to the vehicles manufactured by MITSUBISHI MOTORS CORPORATION, Nissan Motor Corporation, and Groupe Renault. This, in turn, is stipulated to accentuate the need for automotive engineering services during the projected period, pushing the demand for automotive engineering services.

Nikhil Kaitwade

Principal Consultant

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Which is the Key Automotive Engineering Services Market

The growing consumer demand for enhanced and reduced emission vehicles is expected to compel vehicle manufacturers to redesign the exhaust powertrain system.

Also, the vision of European countries to reduce the level of emission to three-fourths of the current situation is anticipated to boost the overall demand for the electric powertrain. Henceforth, expanding the production of electric vehicles in the region, thereby fueling the demand for automotive engineering services in Europe.

On the country level, Germany is the foundation of the automotive industry and the hub of the tier-1 players in the automotive engineering services market, and the ongoing collaboration between engineering service providers and vehicle manufacturers is predicted to place the country on top, in terms of growth, in the global automotive engineering services market.

A similar inclination towards the adoption of technically enhanced products in the Americas is stipulated to have a significant impact on the automotive engineering services market.

Which are the key Competitors of the Automotive Engineering Services Market

The key players of 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 Development:

• FEV Group GmbH has upgraded their set of services such as powertrain development & electrification and vehicle engineering. These fuels the sales of automotive engineering services.
• Ricardo ltd has launched its futuristic electrification solution that are backed by science-based targets. This pushes the sales of automotive engineering services.

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