Automotive Engineering Services Market: Segmented: By Service Type (Designing, Prototyping, System Integration and Testing), By Vehicle Type (Passenger cars and Commercial vehicles), By Application (ADAS and Safety, Electrical, Electronics and Body Controls, Chassis, Interior, Exterior, and Body Engineering, Powertrain and Exhaust and Simulation), And Region - Global Analysis of Market Size, Share & Trends For 2019-2020 And Forecasts To 2031
Automotive Engineering Services Market to surpass USD 455.8 billion by 2031 from USD 166.3 billion in 2021 at a CAGR of 10.6% in the coming years, i.e., 2021-31.
Automotive engineering is an engineering discipline of vehicle engineering which works on the usage, design, and production of various automobiles. This branch of engineering entails the use of arithmetic in the development and manufacturing of automobiles. Safety engineering, automotive electronics, quality assurance, and fuel economy & emissions are some of the engineering disciplines that might be used in this industry. Brake systems, engines, safety mechanisms, fuel technologies, as well as transmission are among the automotive engineering services that are designed and tested. Growing competition in the car sector among original equipment manufacturers (OEMs) and an increased focus on upgrading critical competencies among auto OEMs are two important drivers driving the worldwide automotive engineering services market.
Global Automotive Engineering Services market is expected to project a notable CAGR of 10.6% in 2031.
The automotive engineering service industry is being driven by factors such as an automated vehicle, the introduction of 5G network technology in the automotive sector, original equipment manufacturers & government putting more emphasis on an electric vehicle, the use of technological advancements, concerns about the vehicle as well as passenger safety, & vehicle light-weighting.
Connectivity services segment to grow with the highest CAGR during 2021-31
The market is divided into ADAS and safety, electrical, electronics, and body control, chassis, connectivity service, interiors, exterior, and body engineering, powertrain and exhaust, simulation, and others, based on application. The fastest-growing market is expected to be connection services during the forecast period. The advancement of autonomous car testing, advances in AI technology, and the arrival of 5G connections have all spurred the growth in demand for connected systems in automotive engineering services. Connectivity services help with automotive functions including smart entertainment, remote diagnostics, parking assistant features, diagnostic testing, and so on.
Prototyping segment to grow with the highest CAGR during 2021-31
The prototyping service segment is expected to hold the highest share of the entire automotive engineering services market, based on service type. The highly competitive nature of the automobile sector, which demands better performance requirements in areas such as fuel efficiency, aerodynamics, connection, and security, is credited for the segment's growth. Shorter manufacturing timeframes and reduced production costs are achieved by prototype approaches, as are easier product innovation and supply chain transformation, as well as safer, cleaner, or lighter part designs.
Increasing demand for Electric vehicle sales
The global electric-vehicle market is quickly growing. Electric vehicles, like any other transformational disruptive technology, generate a plethora of powerful economic development, difficulties, and opportunities. The worldwide electric vehicle market is being driven by increased vehicle range, improved charging infrastructure, & proactive involvement by automobile original equipment manufacturers. As the number of electric vehicles on the road grows, so does the need for automotive engineering services to assure product quality, safety, & standard. As a result, the rising production of new energy cars, such as hybrids and fully electric vehicles, has resulted in a significant shift toward automotive engineering services, which is expected to open up various market prospects.
Rising autonomous vehicle development
Autonomous vehicles are self-driving vehicles that sense their surroundings and function without the need for human involvement. Advanced automotive engineering services are used by autonomous vehicles to deal with external conditions & drive accordingly. These cars contribute to improved road safety and a reduction in vehicle collisions caused by human error. Automated cars have the potential to reduce the number of fatalities because the software is predicted to make fewer mistakes than people. Furthermore, fewer accidents mean less traffic congestion, and eliminating human behavior means fewer roadblocks.
Restriction on Intellectual Property (IP)
A common engineering service begins with a concept/research phase and progresses through the design and testing stages before reaching the final stage of manufacturing. The IP violation restrictions require extra caution from service providers. In the automotive sector, innovation necessitates a significant investment of both resources and time. IP laws forbid service providers from repurposing the same technology, which could limit the use of their technical service technology.
Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis
Global Automotive Engineering Services market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Asia-Pacific is the fastest-growing sector for automotive engineering services, owing to the increased usage of electric passenger cars. Regulations and mandates imposed by their government to minimize emissions and stimulate the use of renewable technology are also boosting the markets. Many regional powers plan to replace their current public fleet with electric vehicles shortly. The increasing growth of the logistics industry is driving up demand for commercial electric vehicles, which is driving up the growth of automotive engineering services.
The global lockdown implemented in response to the COVID-19 epidemic has interrupted and halted the production of autos, impacting supply in the AES market. Due to the COVID-19, labor scarcity has impacted the automotive engineering service business, as people are forced to maintain social distance and avoid traveling due to the restrictions. Furthermore, COVID-19 had a favorable effect on the electric car market, with sales increasing over the previous year. As a result, an increase in electric car purchases is likely to drive market growth throughout the epidemic. Furthermore, compared to the vehicle market, the impact of the Covid-19 epidemic on the industry was minimal.
|The market size value in 2021
|USD 166.3 billion
|The revenue forecast in 2031
|USD 455.8 billion
|CAGR of 10.6% from 2021 to 2031
|The base year for estimation
|Revenue in USD million and CAGR from 2021 to 2031
Revenue forecast, company ranking, competitive landscape, growth factors, and trends segments segments
|Service Type, Vehicle Type, Application, and Region
|North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
|Key companies profiled
|Capgemini, AVL, Bertrandt, ALTEN, Valmet Automotive, HCL Technologies Limited, Ricardo, Tech Mahindra Limited, Onward Technologies Ltd., T-NET JAPAN Co., Ltd., ESI Group, Semcon, GlobalLogic, EPAM Systems, Inc., NC.and Other Prominent Players
The Automotive Engineering Services Market size was estimated at USD 166.3 billion in 2021 and is expected to reach USD 455.8 billion by 2031
Capgemini, ALL, Bertrandt, ALTEN, Valmet Automotive, HCL Technologies Limited, Ricardo, Tech Mahindra Limited,Onward Technologies Ltd., T-NET JAPAN Co., Ltd., Semcon, GlobalLogic, EPAM Systems, Inc., NC. ,Other Prominent Players
Connectivity services segment and Prototyping segment are anticipated to hold the Automotive Engineering Services Market
Drivers Increasing demand for Electric vehicle sales
Automotive engineering is an engineering discipline of vehicle engineering which works on the usage, design, and production of various automobiles. This branch of engineering entails the use of arithmetic in the development and manufacturing of automobiles.
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