The Automotive Engineering Services Market is projected to reach USD 384.6 billion by 2027 from USD 153.1 billion in 2019, at a CAGR of 12.2%. The growth of the market is driven by high investments in R&D, expansion of research centres by OEMs and engineering service providers, increasing demand for connectivity services, and the introduction of 5G network technology in the automotive industry.
1 Standardization of Safety Features
2 Rise of Autonomous Vehicles
3 Demand for Outsourcing
The global automotive engineering services market is dominated by major players such as FEV (Germany), IAV Automotive Engineering (Germany), Ricardo (UK), AVL (Austria), Alten (France), Bertrandt AG (Germany), Altran (France), L&T Technology Services (India), and many others.
Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=151284922
The connectivity services segment is expected to be the fastest-growing market during the forecast period
The connectivity services segment is expected to be the fastest-growing market during the forecast period. The expansion of autonomous vehicle testing, advancements in artificial intelligence, and the introduction of 5G connectivity have increased the demand for connected services in automotive engineering services. Connectivity services help in controlling vehicle activities such as smart infotainment, vehicle diagnostics, parking assistance features, diagnostics, and others. OEMs are offering connectivity services in their vehicles. For instance, in July 2018, Audi entered into a partnership with Huawei, the largest telecommunications equipment and smartphone maker in China, for introducing connectivity features in upcoming vehicles. The Renault-Nissan-Mitsubishi Alliance plans to launch new vehicles with Alliance Connected Cloud in China by 2022. All these enhancements would accentuate the need for new sensors and use cases of IoT devices in the coming years. Thus, the automotive industry would witness an increasing demand for engineering service providers, specialized in connectivity services.
In-house engineering services are expected to lead the global market during the forecast period
The in-house engineering services are expected to be the largest market. Major OEMs keep complicated automotive engineerings services such as engine design, powertrain design, and transmission systems for in-house development. These designs and optimizations vary from one OEM to another and, thus, require different techniques and specialization that can be done in-house for better results. Also, the growing focus on zero-emission vehicles has compelled OEMs to redesign their existing engines to comply with the latest emission standards. The designing of electric vehicles would enhance the demand for in-house investments by OEMs.
Electrical, Electronics and body control is expected to lead the automotive engineering services market
Automotive electrical, electronics, and body control have a high value-added proportion in vehicle development. Electronics and electrical systems play a crucial role in handling all functions dedicated to passenger comfort and convenience. Services in automotive electrical and electronics include power management module, climate control, power window, body control module, and smart mirror and wipers. The trend is expected to grow due to the adoption of electric vehicles and complex electronic components for the safer and functional driving experience. Service providers such as L&T Technology Services and FEV have invested huge resources to develop electrical, electronics, and body control solutions in automotive engineering services.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=151284922
The Asia Pacific is expected to be the fastest-growing market during the forecast period
The Asia Pacific region is the fastest-growing market for automotive engineering services because of the growth in India, China, Japan, and South Korea. Rising vehicle production, increasing demand for luxury vehicles, growing sales of electric cars, and technological development are driving the automotive engineering services market in the Asia Pacific region.
The key market players in the region include car manufacturers such as Honda, Toyota, Geely, BYD, Kia, Suzuki, and Hyundai and engineering service providers such as Wipro, Tech Mahindra, L&T, and AES. Additionally, Japan is the highest contributor in the global automotive engineering services market. The Japanese automotive industry has embraced the shift toward electric mobility. The high growth in the adoption of EVs in Japan is driven by government initiatives to increase the number of charging stations and extensive R&D to improve EV charging infrastructure. The rising adoption of EVs would increase the demand for advanced engineering services in the country. In September 2018, the South Korean government announced a plan to invest more than USD 860 billion in the development of electric vehicles.
Europe is expected to lead the market during the forecast period.
The increasing consumer demand for refined and low emission vehicles has compelled OEMs in Europe to redesign the powertrain and exhaust systems. Also, the goal of reducing 80% CO2 emission by 2050 has boosted the overall demand for EVs in the region. OEMs plan to launch electric variants of the existing gasoline models in the coming years. Thus, the overall demand for engineering services in Europe is likely to grow. Germany is expected to be the largest market for automotive engineering services. The country is home to major car manufacturers and tier 1 companies such as Volkswagen, Daimler, Bosch, Continental, and others. Also, the demand for connected cars is set to increase significantly in the premium segment in the country. The automotive industry accounts for one-third of the total R&D investments in the country. The German automakers’ desire to embrace electronic technologies and software solutions is expected to drive the market for automotive engineering services.
Company Name: MarketsandMarkets
Contact Person: Mr. Aashish Mehra
Email: Send Email
Address:630 Dundee Road Suite 430
State: IL 60062
Country: United States