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The size of the automotive engineering services market will reach US $

London, March 25, 2022 (GLOBE NEWSWIRE) – The global size of the automotive engineering services market was estimated at $ 170.25 billion in 2021. The automotive engineering services market is expected to be driven by the growing technological capabilities of engineering service providers to offer R&D and product innovation in their connected automotive solutions , vehicle positioning and guidance systems. Furthermore, the overall growth of the automotive engineering services market is likely to benefit from the rapid shift of OEMs’ preference for digital solutions over mechanical and basic service.

However, due to the depth and complexity of powertrain, transmission and engine design, manufacturers prefer to design these components in-house rather than outsourcing them to engineering service providers.

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In addition, growing problems with intellectual property and design exposure are driving original equipment manufacturers to set up their own manufacturing facilities. As a result, the growth of the automotive engineering services market is expected to be hampered by the growing focus of manufacturers on in-house design production.

Scope of the automotive engineering services market

Attributes of the report Details
Market size by 2029 330.48 billion dollars
Reference year 2021
Forecast data 2022-2030
The largest revenue holder Europe
Fastest growing region APAC
Companies covered Tech Mahindra Limited, IAV Automotive Engineering, L&T Technology Services, HCL Technologies, Fev Europe GmbH, Harman International Industries Inc., AltenCresttek Company, Akka Technologies, Capgemini SE, Bertrandt AG

Highlights of the report

  • Based on the service, the prototyping segment is the fastest growing segment in the global automotive engineering services market. Shorter lead times and reduced manufacturing costs are achieved with prototype approaches, as well as easier product innovation and supply chain transformation, as well as cleaner, safer and lighter part designs.
  • Europe is the largest segment for the automotive engineering services market in terms of region. Europe is home to one of the largest automotive manufacturing centers in the world, and car manufacturers are an important part of the European economy. The government is providing subsidies and pushing the availability of energy-efficient cars, which has led to an increase in demand for electric vehicles.
  • The Asia Pacific region is the fastest growing region in the automotive engineering services market. Many governments in the region intend to replace their current public fleets with electric vehicles. The rapid expansion of the logistics sector is also spurring the demand for commercial electric cars, which in turn is driving up the demand for automotive engineering services.

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Market dynamics

Drivers: Standardization of security features

Several governments around the world have imposed safety features on new vehicles to reduce overspeed and fatalities. Advanced safety features include advanced emergency braking, lane keeping systems and advanced crash tests. All of these requirements are essential for general road safety. To improve passenger safety, car manufacturers must comply with the new regulations. Over the next few years, all of these mandates will have a significant impact on vehicle safety. Initiatives by original equipment manufacturers to implement these capabilities early will result in a strong demand for engineering service providers to provide these solutions.

Restrictions threats

Automotive engineering services play a significant role in advanced vehicle driver assistance systems technologies. Most of the safety features of advanced driver assistance systems include sensors such as radar, ultrasonic sensors, cameras, infrared and various actuators. The accuracy of safety techniques could endanger the safety of occupants. Therefore, safety is very important to the occupant. Hence, this factor could hinder the growth of the global automotive engineering services market during the forecast period.


Increase in sales of electric vehicles

The global electric vehicle industry is rapidly expanding. Electric vehicles, like any transformative disruptive technology, trigger many new influential economic developments, challenges and opportunities. Global sales of electric vehicles are driven by the increase in the range of vehicles, the increase in the availability of the charging infrastructure and the proactive participation of manufacturers of original automotive equipment. Furthermore, the growing sensitivity of various governments to a cleaner environment has increased the demand for zero-emission vehicles, which is supporting the growth of the electric vehicle market. Developed countries are actively promoting the use of electric vehicles to reduce emissions, which has led to increased sales of electric vehicles. As a result, the increase in electric vehicle sales is creating profitable opportunities for the growth of the automotive engineering services market.

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Intellectual Property Rights

Outsourcing is now widely used by original equipment manufacturers and system integrators in the automotive industry. A typical engineering service begins with research and continues through the design and testing stages before reaching the final stage of production. In some cases, the original equipment manufacturer owns the intellectual property of new technologies or processes developed during the process. However, service providers may work with multiple original equipment manufacturers for similar requirements or specifications, limiting the use of existing technology patented by various original equipment manufacturers. As a result, service providers need to be extremely careful when it comes to intellectual property infringement laws. Intellectual property laws prohibit service providers from repeatedly using the same technology, which could limit the use of their engineering services technology.

Market Segmenttion

By location

By service

  • To design
  • Prototyping
  • System integration
  • Test
  • Other

By application

  • Autonomous driving
  • Bodywork and chassis
  • Powertrain and after-treatment
  • Infotainment and connectivity
  • Other

By vehicle type

  • Passenger wagons
  • Commercial vehicles

From nature

By geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa (MEA)

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