Automotive Engineering Services Market Size, Share, Growth Analysis, By Location(In-House, Outsource), By Service Type(Concept/Research, Designing, Prototyping, System Integration), By Application(ADAS and Safety, Electrical, Electronics, and Body Controls), By Vehicle Type(Passenger Cars, Commercial Vehicles), By Nature Type(Body Leasing, Turnkey), By Propulsion(Internal Combustion Engine, Electric), By Region - Industry Forecast 2024-2031

Global Automotive Engineering Services Market size was valued at USD 152 billion in 2022 and is poised to grow from USD 164.62 billion in 2023 to USD 311.53 billion by 2031, growing at a CAGR of 8.30% during the forecast period (2024-2031).

The key players in the automotive engineering services market are working on continuous innovation and product portfolios. Furthermore, the growing relevance of IoT, fueled by the expanding therapeutic applications of these services, is expected to drive the growth of Automotive Engineering Services during the forecast period. For instance, in July 2020, Audi announced a partnership with Huawei, the top producer of smartphones and telecommunications equipment in China, to integrate connection technology into upcoming cars. 'Capgemini (France) ', 'AKKA Technologies (France) ', 'Tech Mahindra (India) ', 'IAV Automotive Engineering (Germany) ', 'HCL Technologies (India) ', 'Ricardo (UK) ', 'AVL (Austria) ', 'Bertrandt AG (Germany) ', 'Alten Group (France) ', 'L&T Technology Services (India) ', 'FEV (Germany) ', 'Imaginative Automotive Engineering Services (India) ', 'Onward Technologies (India) ', 'Automotive Engineering Services (AES) (India) ', 'Kistler (Switzerland) ', 'Continental Engineering Services (Germany) ', 'EDAG (Germany) ', 'ESI Group (France) ', 'Semcon (Sweden) ', 'Segula Technologies (France) ', 'Epam Systems (US) ', 'Belcan (US) ', 'T-Net Japan (Japan) ', 'Designtech Systems (India) ', 'Horiba (Japan) ', 'Intertek (UK) ', 'Altair Engineering (US) ', 'ARRK Product Development Group (Japan)'

The development of the next generation of connected vehicles has attracted significant investment from automotive OEMs and Tier 1 partners. In high-end sedans and SUVs, IoT gadgets, ultrasonic sensors, and high-definition cameras are typical. These various components combine to form an ecosystem that can communicate with the outside world and share data to improve the in-car experience. An onboard computer processes the data to offer numerous functions including seamless navigation and individualized infotainment systems. To schedule maintenance and examine the status and health of the vehicle, the data can also be utilized to predict engine issues.

Driverless vehicles that can drive themselves by sensing their environment are known as autonomous vehicles. To react to external situations and adjust their driving, autonomous vehicles require cutting-edge automotive engineering services. These cars aid in enhancing traffic safety and decreasing vehicle collisions brought on by human mistakes.

Asia Pacific had the highest market share in 2021, due to a fast increase in the adoption of electric vehicles. The market is anticipated to expand as a result of the numerous government initiatives and strict restrictions to minimize carbon emissions in nations like Japan and South Korea. Throughout the projected period, the market in North America is anticipated to rise steadily. Some of the key reasons propelling the market's expansion include the rising sales of hybrid and plug-in hybrid electric vehicles and the rising demand for in-vehicle connectivity in passenger automobiles. Throughout the projection period, Europe is anticipated to have rapid market growth. Factors like the existence of large market competitors and growing concerns about carbon emissions in nations like Germany and France are anticipated to fuel market growth.