USD 156.20 billion
Automotive Engineering Service Provider Market Size, Share, Growth Analysis, By Service(Engine, Chassis, Transmission, Car And BIW), By Application(Mechanical, Electrical & Electronics, Software, Safety), By Vehicle Type(Passenger Car, Commercial Vehicle, Two-Wheeler), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25C2123 |
Region:
Global |
Published Date: March, 2024
Pages:
223
|Tables:
96
|Figures:
71
Automotive Engineering Service Provider Market Insights
Global Automotive Engineering Service Provider Market size was valued at USD 156.20 billion in 2022 and is poised to grow from USD 168.07 billion in 2023 to USD 301.99 billion by 2031, growing at a CAGR of 7.6% during the forecast period (2024-2031).
The capacity of improved connection solutions to provide a range of services, including remote diagnostics, smart infotainment, navigation, and passenger safety, is driving an increase in these solutions. Over the course of the projected period, it is expected that the automotive engineering services market will demonstrate strong growth possibilities, hence boosting the market size.
Primarily utilized in the development, fabrication, testing, and design of all automotive components as well as in the maintenance and diagnosis of mechanical, electrical, electronic, and software systems. This provides the vehicle with the optimal model, size, and shape. Automobile engineering services are in high demand due to their wide range of offerings, which include transmission and engine-related services, chassis modifications, and component upgrades.
With the help of automotive engineering services, each component is integrated from the concept to the use phase. Additionally, the vendor may choose to handle these parts and fittings internally, a practice called in-house automotive engineering services. Sales of automotive engineering services are pushed by this.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Mechanical
Fastest Growth
Software
Growth Rate
7.6% CAGR
Global Automotive Engineering Service Provider Market ($ Bn)
Country Share for North America Region (%)
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Automotive Engineering Service Provider Market Segmental Analysis
The global automotive engineering service provider market is segmented based on service, application, and vehicle type. By service, the market is segmented into engine, chassis, transmission, car and BIW, seating systems, cooling and HVAC, and interior and exterior trim. By application, the market is segmented into mechanical, electrical & electronics, software, and safety. By vehicle type, the market is segmented into passenger car, commercial vehicle, two-wheeler. Further, by regions, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Application
The segments of the global automotive engineering service provider market that are based on application include safety, software, electrical & electronics, mechanical, and electrical. The mechanical segment is projected to account for a substantial share of the global automotive engineering service provider marketplace. The fiercely competitive nature of the automotive industry can be attributed to the expansion of this particular segment. Using prototyping techniques in mechanical manufacturing-related services, businesses can create accurate results in shorter production times, which reduces additional costs. Future automotive trends are anticipated to favor mechanical vehicles since automakers are investing in improving their manufacturing processes to keep up with the growing demand for end-user convenience.
With the greatest market CAGR, the software segment is expanding at the quickest rate. Its expansion is linked to the rise in connected car services within the automotive sector. The market's embedded segment has grown considerably as well. Electrification of the automotive industry is anticipated to be a key trend that will bolster the demand for software in the automotive engineering service provider marketplace over the coming years.
Analysis By Vehicle Type
Three categories of vehicles are included in the worldwide automotive engineering service provider market segmentation: passenger cars, commercial vehicles, and two-wheelers. Currently, the automotive engineering service provider market is led by the passenger car segment. This is caused by the rising global demand for passenger cars, as well as the growing complexity of automotive systems and the requirement for specialized engineering know-how.
On the other hand, the demand for automotive engineering service provider for commercial vehicles is estimated to increase at a notable pace over the coming years. Growing demand for energy efficient commercial vehicles and increasing popularity of different hydrogen and electric-powered commercial vehicles are also estimated to create new opportunities for automotive engineering service providers across the forecast period and beyond.
Global Automotive Engineering Service Provider Market By Application
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Automotive Engineering Service Provider Market Regional Insights
The market for automotive engineering services providers in North America will be dominated by this region's growing emphasis on safety and emissions regulations, which is a result of both the region's growing demand for electric and hybrid vehicles and its increasing emphasis on these regulations.
The European vehicle engineering service provider market has the second-largest market share, primarily because of growing investments in autonomous technologies and vehicle electrification. Additionally, the European region's fastest-growing market was the UK Automotive Engineering Service Provider Market, while the German Automotive Engineering Service Provider Market held the biggest market share.
From 2024 to 2031, the Asia-Pacific automotive engineering service provider market is anticipated to expand at the fastest rate. This is because EV usage is increasing in the area. Furthermore, the automotive engineering service provider market in China had the most market share, while the market in India had the quickest rate of growth in the Asia-Pacific area.
Global Automotive Engineering Service Provider Market By Region
- Largest
- Fastest
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Automotive Engineering Service Provider Market Dynamics
Drivers
Strong Innovation Fuelled by the Need for Connectivity
- The automobile sector is transforming due to the strong impact of innovation in automotive engineering services, driven by the need for sophisticated and self-governing connectivity features. Car manufacturers are branching out into the automotive engineering services industry to learn new skills and provide vehicle software and electronic services to meet the growing need for connection.
Expanding Automotive Manufacturing Activity
- The growing disposable income of people around the world has led to increased sales of vehicles, which in turn has resulted in increased automotive production on a global level. As automotive giants try to maximize their output, they are projected to turn toward automotive engineering service providers to enhance their production in the future.
Restraints
High Costs
- Employing the services of automotive engineering service providers could be a huge investment for many automotive companies and not all companies will be willing to spend such serious capital on these services. The growing use of advanced engineering technologies and high demand for creative engineering will further add up to the costs and limit the automotive engineering service provider market growth scope.
Growing Complexity of Vehicles
- Vehicles are becoming more and more complex by the day owing to the integration of advanced mechanical, electrical, and software systems to power sophisticated technologies like ADAS, etc. Providing engineering services for these complex operations could slow down automotive engineering service provider market growth to a certain extent.
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Automotive Engineering Service Provider Market Competitive Landscape
The global automotive engineering service provider market will continue to grow as a result of significant R&D investments by companies to extend their product ranges. To increase their worldwide presence, automotive engineering service provider market players are also opting for different strategies and focusing on maximizing their revenue generation potential. Notable changes in the industry include the introduction of new products, contracts, mergers and acquisitions, increased investment, and cooperation with other businesses. To grow and thrive in an increasingly competitive and rising market environment, the automotive engineering service provider sector needs to provide affordable products.
One of the primary business strategies employed by manufacturers in the worldwide automotive engineering service provider industry to assist clients and expand the market sector is manufacturing locally to minimize operational costs. The automotive engineering service provider sector has provided medicine with some of the biggest benefits in recent years.
The American maker of audio electronics called Harman International Industries, has been functioning as a stand-alone division of Samsung Electronics. The launch of Ready Care, a new service from Harman International (Harman) that analyzes driver behaviour and provides tips for safer driving, has been announced. In addition to Herman's connected car technologies, it offers solutions like Cognitive Distraction, Stress-Free Routing, and Personalized Comfort to improve driver safety.
The German-based global provider of engineering services, FEV Group, includes FEV India Pvt. Ltd. as a subsidiary. The company provides system integration, testing and validation, and design and development services to the transportation and automotive sectors. Based in Pune, India, FEV India was established in 2008. For a range of automotive and transportation applications, a group of skilled engineers and technicians works closely with customers to provide innovative solutions. The FEV io Intelligent Mobility Software, which integrates the company's knowledge of software development, innovative power solutions, and intelligent mobility, was unveiled by FEV in April 2022. This solution will include an all-inclusive software suite with ADAS and connecting services for the automotive industry.
Top Player’s Company Profile
- IAV Automotive Engineering, Inc.
- Robert Bosch GmbH
- Magna International Inc
- Imaginative Automotive Engineering Services
- Contechs
- AVL LIST GmbH
- Continental AG
- HARMAN International
- Bertrandt
- EDAG Engineering GmbH
- Cap Gemini Engineering
- ASAP HOLDING GMBH
- Altair Engineering Inc.
- Akkodis
- Alten Group
Recent Developments
- To construct a Software as a Service (SaaS) platform that would not only meet all functional requirements but also open up new income channels and include features that would allow the product to be supplied commercially to other customers, Capgemini recommended a tiered roadmap strategy in January 2023.
- Application management services, intended to give full lifecycle support for business applications used by financial services and insurance firms, were made available by Capgemini Service SAS in May 2023.
- Capgemini introduced a fresh line of generative AI products in July 2023.
Automotive Engineering Service Provider Key Market Trends
- High Demand for Connected Services in Automotive Industry: Automotive companies are continually focusing on providing advanced connected services and this is projected to create lucrative new opportunities for automotive engineering service providers in the future. Remote monitoring and operation is a popular trend that almost all automotive companies are focusing on providing in their latest vehicles. For instance, Audi provides a smartphone app called My Audi and a connected service called Audi Connect. The development of connected services in compliance with OEM criteria should be an area of success for most automotive engineering service providers in the long run. Electrification of the automotive industry and growing focus on vehicle safety are also slated to create new growth scope for automotive engineering service provider market players going forward.
Automotive Engineering Service Provider Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the global automotive engineering service provider market is anticipated to increase significantly due to factors such as high demand for better automotive connectivity options, rising demand for connected services, and developments in automotive engineering technology. Strong innovation driven by the requirement for connectivity, the need for better performance and reduced emissions, and the increased need for automotive engineering services because of connected cars are some of the drivers. The cost market dynamics and the increasing complexity of automobiles are among the constraints. The market is expanding due to rising demand for advanced driver assistance systems (ADAS), connected services, and electric and hybrid cars. The design and development of these technologies are mostly the responsibility of automotive engineering service providers, who enable manufacturers to successfully satisfy consumer needs.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 156.20 billion |
| Market size value in 2031 | USD 301.99 billion |
| Growth Rate | 7.6% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Engineering Service Provider Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Engineering Service Provider Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Engineering Service Provider Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Engineering Service Provider Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Engineering Service Provider Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Engineering Service Provider Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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