In 2022, the global Automotive Engineering Services Industry was valued at USD 1.46 billion and is projected to grow to USD 1.6 billion in 2023. According to Future Market Insights (FMI), the market is expected to expand at a CAGR of 7.17% from 2023 to 2033, potentially reaching approximately USD 3.2 billion by 2033.
The growth of the automotive engineering services market is being driven by increasing demand for advanced technological solutions, including connectivity features and collision avoidance sensors. Additionally, the emphasis on developing lightweight vehicles—spurred by government regulations and manufacturer initiatives aimed at improving fuel efficiency—is contributing to market expansion.
Government regulations mandating safety-related systems are a major factor propelling the market forward. Furthermore, the rising adoption of electric and hybrid vehicles is increasing production needs and driving growth in automotive engineering services.
Key Takeaways from the Industry Study
- The global automotive engineering services market expanded at a CAGR of 6.42% between 2018 and 2022.
- India is forecasted to develop a 6.8% CAGR from 2023 to 2033.
- China is anticipated to expand at a CAGR of 7.2% from 2023 to 2033.
- North America has captured a market share of 43.2% in 2022.
- European market bolstered at a market share of 48.2% in 2022.
- Under the service segment, prototypes were registered at a market share of 56.2% in 2022.
“Demand for advanced and autonomous connectivity features is influencing innovation intensely and is one of the major key drivers of the automotive engineering services market”, – commented a Future Market Insights analyst.
Market Competition
Companies aim to develop cutting-edge solutions during the entire life cycle of a product, from the design and inception phase to the end of its service life. They also strategically locate their main factories in emerging markets to make it ideal to service the developing markets.
Detailed Market Study: Full Report and Analysis
Key companies profiled in the Automotive Engineering Services Industry
- FEV Group GmbH
- IAV
- Ricardo
- AVL
- ALTEN Group
- Bertrandt
- ALTRAN
- L&T Technology
- Capgemini Service SAS
- T-NET JAPAN Co., Ltd.
- DesignTech Systems.
- Tech Mahindra Limited
- EDAG Engineering GmbH
- Horiba, Ltd.
Some of the new developments in the automotive engineering services market are:
- In May 2023, Tech Mahindra inaugurated Technology Development Center in Oman.
- In August 2023, Temasek is planning to invest 12 billion rupees ($145 million) in Mahindra & Mahindra Ltd.’s electric vehicle unit, valuing it at US$ 9.8 billion.
Key Segments Profiled in Automotive Engineering Services Industry
By Service Type:
- Testing & Diagnostic
- System Integration
- Designing
- Prototyping
- Research
By Applications:
- ADAS & Safety
- Body & Chassis
- Powertrain & Exhaust
- Interior, Exterior & Body Engineering
- Electrical, Electronics & Body Controls
- Connectivity Services
- Simulation
By Location:
- Outsourced Services
- In-house Services
By Vehicle Type:
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- Middle East & Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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Website: https://www.futuremarketinsights.com
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