Automotive Engineering Services Market Report 2023: Stringent Government Regulations for Automotive Safety Features Present Opportunities
Global Automotive Engineering Services Market
Dublin, Feb. 22, 2023 (GLOBE NEWSWIRE) -- The "Automotive Engineering Services Market by Application, Service Type, Location (In-house, Outsource), Vehicle Type (Passenger Cars, Commercial Vehicles), Nature Type (Body Leasing, Turnkey), Propulsion (ICE, Electric) and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global automotive engineering services market is projected to grow from an estimated USD 153.2 billion in 2022 to USD 243.9 billion by 2028, registering a CAGR of 8.1%. The market will grow for both in-house and outsourced services with the rapid setup of new R&D centers by OEMs and AES providers in Asia Pacific and North America.
However, the market in Europe is expected to get impacted due to the upcoming recession as well as other ongoing geopolitical situations that are currently affecting the region. OEMs and AES providers have already announced plans to tilt R&D spending towards electrification and advanced automotive technologies such as ADAS, and Connectivity among others.
Prototyping and Designing are expected to be the most lucrative components of the automotive engineering services market with rapid design changes expected in the coming years will OEMs around the world planning for an EV shift.
The automotive engineering services market is dominated by established players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), and HCL Technologies (India), and others. They have initiated partnerships to develop their technology and provide best-in-class services to OEMs.
Automotive Design Segment to grow at the fastest rate during the forecast period
Growing demand for smart manufacturing and rapid upgrades in automotive design with the influx of new technologies will lead to a prosperous market for automotive design. The traditional design process is used in the final sketching of the product. The 2D rendering process is crucial to visualize whether the design is feasible or not. Once the design seems practical and feasible, computer-aided design (CAD) is used to make a 3D model.
Clay modeling then helps achieve a physical model of the design. The designing of the car can either be done by the internal team of automotive manufacturers or the manufacturer can outsource it. There are many guidelines taken into consideration while designing a vehicle. The process of designing includes identifying the target customers for whom the car is designed, the type of car it should be, the expected cost, and how the car fits into the brand's portfolio.
There are various design elements in a car design such as exterior and interior designs. New technologies such as the use of metaverse (or XR technologies) in car design, provides methods for rapid designing and simulation for automobiles or separate component design process. Both OEMs and AES providers work with solution providers to develop their product designs virtually before moving with prototyping.
Outsource segment to grow in demand during the forecast period in the automotive engineering services market
Outsourcing the automotive engineering services is a way of hiring engineering functions from an external source. Practices such as design, prototyping, system integration, and testing are usually done by outsourcing the services to an external source. Less complex and task-based services are outsourced to service providers in the automotive engineering services market.
Major services, such as electrification, vehicle connectivity, ADAS, and safety, are handled by automotive engineering service providers. ADAS features help to enhance safety and reduce accidents. New engineering services have also come into the picture after the implementation of safety regulations by the European Union. Upcoming vehicles must pass the new safety standards to maintain the safety of the occupant. The increasing requirements for testing and validation would drive the demand for outsourcing.
The outsourcing of automotive engineering services can help automotive OEMs by integrating product development with related operations such as engineering and warranty management. It can also help OEMs to gain access to skilled workers who are familiar with current indigenous trends. For instance, companies like HARMAN International, Ricardo, Tech Mahindra, Capgemini, and AVL, among others, provide outsourcing services such as body engineering, powertrain engineering, chassis engineering, and car electronics to various OEMs and automakers.
Growing Demand for ADAs and Connectivity Solutions
Electrification of Vehicles and Increase in Shared Mobility
Use of Advanced Automotive Applications in Luxury Vehicles
Intellectual Property Constraints
Digitization of R&D Operations of Global Automotive OEMs
Stringent Government Regulations for Automotive Safety Features
Technological Shift to L4 and L5 Automation
Implementation of Stringent Emission Norms and Environmental Regulations
Highly Competitive and Scattered Market
Risk of Heavy Investments
Increase in Cybersecurity Threats due to Advancements in Connectivity Technology
No. of Pages
2022 - 2028
Estimated Market Value (USD) in 2022
Forecasted Market Value (USD) by 2028
Compound Annual Growth Rate
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Automotive Engineering Services Market, by Location
7 Automotive Engineering Services Market, by Service Type
7.5 System Integration
7.7 Key Industry Insights
8 Automotive Engineering Services Market, by Application
8.2 ADAs and Safety
8.3 Electrical, Electronics, and Body Controls
8.5 Connectivity Services
8.6 Interior, Exterior, and Body Engineering
8.7 Powertrain and Exhaust
8.9 Battery Development and Management
8.10 Charger Testing
8.11 Motor Controls
9 Automotive Engineering Services Market, by Vehicle Type
9.2 Passenger Cars
9.3 Commercial Vehicles
10 Automotive Engineering Services Market, by Nature Type
10.2 Body Leasing
11 Automotive Engineering Services Market, by Propulsion
11.2 Internal Combustion Engine
12 Automotive Engineering Services Market, by Region
13 Competitive Landscape
14 Company Profiles
15 Analyst's Recommendations
Arrk Product Development Group
Automotive Engineering Services (Aes)
Continental Engineering Services
Iav Automotive Engineering
Imaginative Automotive Engineering Services
L&T Technology Services
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