Factors such as the increasing demand for connected vehicles, increasing EV sales, and adoption of advanced technologies are expected to boost the market. However, high investment risk and increasing competition are the key challenges in the automotive engineering services market.
New York, April 23, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Engineering Services Market by Application, Service, Location & Vehicle - Forecast to 2027" - https://www.reportlinker.com/p05797425/?utm_source=GNW
Increasing concerns over air pollution and global warming have forced the governments of several countries to enforce strict emission policies and regulations for ICE vehicles.Increasing adoption of electric vehicles is expected to change the outlook of the automotive engineering services market.
More EV sales would accentuate the need to develop new battery technologies, new chassis and exterior designs, and advanced transmission systems for these vehicles.EV manufacturers such as Tesla, Nissan, and BAIC outsource the design and development of new technologies and solutions to tier 1 engineering companies.
This trend is likely to grow with the rise in EV sales and would drive the automotive engineering services market during the forecast period.
The introduction of autonomous vehicles is expected to transform commuting.ADAS technologies have significantly reduced the complexity of driving with features such as lane monitoring and emergency braking, stability controls.
Autonomous vehicles rely on advanced technologies such as LiDAR, radars, ultrasonic sensors, and high-definition cameras to collect data.This data is analyzed by an onboard smart autonomous driving system to maneuver the vehicle safely.
Algorithms used in autonomous vehicles increase driving accuracy.The benefits are then shared with all the other vehicles as well.
Tesla, Volkswagen, Ford, General Motors, and Google plan to launch fully autonomous vehicles in the coming years. These vehicles would require automotive engineering services, including newly designed chassis systems and body controls, new electronic components, advanced vehicle aerodynamics, and stability solutions.
Major OEMs and e-hailing service providers such as General Motors, Ford, Uber, Lyft, and Waymo have launched robo-taxi trials in the US.Passengers can hail a self-driving cab from a dedicated application.
The US became the first country to fully deploy robo-taxis for public transportation.Companies such as Tesla, Volkswagen, Ford, General Motors, and Waymo also plan to launch fully autonomous vehicles in the coming years.
In March 2018, Nissan announced plans to deploy ProPILOT in 20 models by 2022.The increasing focus on autonomous driving systems would require OEMs to incorporate more cruise control features and advanced safety systems for semi-autonomous vehicles.
This is further expected to generate more opportunities for engineering services companies, especially in the autonomous vehicles space. However, the negative impact of COVID-19 might delay the development and deployment of autonomous driving systems. For example, Ford delayed the rollout of autonomous vehicles till 2022, from earlier announced 2021.
The passenger cars segment is expected to be the largest and the fastest segment in the forecast.
According to OICA, passenger car production hit around 55 million units in 2020 despite the COVID-19 outbreak.This production volume is expected to be the major driver for the growth of the automotive engineering services market.
The passenger vehicles segment is the most focused vehicle segment for service providers.Technologies used in these vehicles are frequently changing due to the high demand from consumers for luxurious and ADAS features.
Also, government regulations for emissions are frequently changing, influencing the manufacturers to increase the EV output ranges and offer energy-efficient as well as low maintenance technologies to consumers.
Increasing urbanization and evolving customer needs have influenced global passenger car sales in recent years.The automotive engineering services market has grown significantly in the passenger car segment due to the increasing customer demand for connectivity and safety features.
The growing demand for digital connectivity features is supported by a wide network coverage of 5G connectivity and the installation of IoT devices in premium sedans and SUVs.In the present scenario, customers want eco-friendly mobility combined with communication.
This creates an opportunity for OEMs to offer more connectivity features in their upcoming vehicles.Hence, the demand for various automotive engineering services is set to increase during the forecast period.
For instance, in 2020, Altran and 5TONIC collaborated on 5G mobile projects to improve the reliability and performance of advanced driver assistance systems (ADAS) in cars.
Outsource is expected to be the fastest location segment in the forecast period.
The increasing consumer demand for advanced vehicle connectivity services would fuel the market for outsourcing during the forecast period.OEMs are likely to focus on increasing their outsourcing of automotive engineering services as they prefer the flexibility to meet customers’ specific demand in all regional markets.
The research and testing of connected cars and cybersecurity are major challenges that contribute to a high number of software changes and software management services.Thus, the OEMs that gain the most value from their collaborations with the engineering service providers will be the ones to select their external partners and ensure that projects stay on track.
All these benefits of outsourcing will have a positive impact on the overall market.Also, ongoing developments in the field of EV batteries are targeted toward improving the range of electric vehicles, with most major manufacturers of EV batteries innovating in battery design and chemistry to extend the range of EVs to eliminate the requirement for regular charging.
This also favors the outsourcing of automotive engineering services for battery management.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
• By Company Type: Tier I - 23%, Engineering Service Providers - 32%, and OEMs - 45%
• By Designation: C Level - 61%, D Level - 23%, and Others - 16%
• By Region: North America - 30%, Europe - 38%, and Asia Pacific - 32%
The automotive engineering services market is dominated by global players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), and Bertrandt AG (Germany).
The study covers the automotive engineering services market across various segments.It aims at estimating the market size and future growth potential of this market across different segments such as service type, application, location, vehicle type, and region.
The study also includes an in-depth competitive analysis of key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.
Key Benefits of Buying the Report:
• The report will help market leaders/new entrants in this market with information on the closest approximations of revenue numbers for the overall automotive engineering services market and its subsegments.
• This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
• The report also helps stakeholders understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
Read the full report: https://www.reportlinker.com/p05797425/?utm_source=GNW
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