[199 Pages Report] The Automotive Engineering Services Market size was estimated at USD 186.20 billion in 2023 and expected to reach USD 202.61 billion in 2024, at a CAGR 10.16% to reach USD 366.80 billion by 2030.
Automotive engineering service providers offer services such as research, designing, prototyping, system integration, and testing, among others, to various global OEMs and automotive component manufacturers. Automotive engineering services help enterprises develop high-quality and technologically advanced autonomous and connected electric vehicles. The surge in demand for autonomous vehicles and government regulations enforcing lower vehicle emissions are inclining the OEMs to employ automotive engineering services. However, the elevated costs of automotive engineering services may refrain OEMs from utilizing these services. The widespread deployment of 5G networks in the automotive sector for real-time vehicle-to-vehicle communication and significant investments to scale up the production of automobiles are expected to accelerate the use of automotive engineering services by OEMs.
The automotive manufacturers in the Americas, Europe, and Asia-Pacific region widely employ automotive engineering services to design and develop advanced automobiles and incorporate safety features in the vehicles. Technological advancements and changing government regulations related to automobiles are inclining the automotive manufacturers in Germany, the U.S., the U.K., Japan, South Korea, and China to employ these services to conduct research and develop the vehicles that comply with the standards proposed by the governments of the respective countries. Additionally, governments worldwide are taking initiatives to accelerate the production of electric cars to reduce their carbon footprint. The Electric Vehicles Initiative (EVI) is a multi-government policy forum dedicated to accelerating the introduction and adoption of electric vehicles worldwide. The growing demand and adoption of autonomous and electric vehicles worldwide create immense opportunities for automotive engineering service providers to design, fabricate and integrate innovative technologies.
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Market Dynamics
The market dynamics represent an ever-changing landscape of the Automotive Engineering Services Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
- Market Drivers
- Rising demand for autonomous vehicles coupled with the growing automobile industry
- Stringent government policies and regulations for ICE vehicles to reduce vehicle emissions
- Increasing demand for advanced connectivity and advanced safety & security solutions
- Market Restraints
- High cost of automotive engineering services with the use of advanced technologies
- Market Opportunities
- Introduction of 5G networks in the automotive sector for real-time vehicle-to-vehicle communication
- Favorable investment landscape for the production of automotive
- Market Challenges
- Concerns related to the intellectual property and patent rights for OEMs
Porter’s Five Forces Analysis
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Automotive Engineering Services Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Automotive Engineering Services Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
FPNV Positioning Matrix
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Automotive Engineering Services Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Recent Developments
Jaguar Land Rover partners with Tata Technologies to accelerate the digital transformation of its industrial operations
Jaguar Land Rover recently entered into a partnership with Tata Technologies to help accelerate its digital transformation journey. The venture is said to modernize Jaguar's engineering services, boost product development and deliver crucial automotive engineering capabilities. This solidifies an already strong relationship between the two powerful organizations, forging ahead in the industry to deliver more high-quality vehicles powered by the most innovative technology available on the market today. Being backed by such a formidable team is sure to catapult Jaguar Land Rover into becoming a leader of innovation in their field and shows that they are serious about their commitment to producing outstanding products for customers around the world. [Published On: March 14, 2023]
L&T Technology Services Unveils CoE to Offer Suite of Automotive Solutions on AWS
LT Technology Services has recently unveiled its Center of Excellence (CoE) to present a suite of automotive solutions on AWS. This creates an opportunity for their clients to benefit from cutting-edge advancements in the field, such as rapid time-to-market, superior user experience, and cost optimization. With adopting cloud technology, users will have access to a more flexible architecture that offers scalability, compliance and security capabilities. Moreover, being compliant with industry certifications such as ISO 9001:2008 and CMMI Level 3 assurance helps bring greater stability between development operations. Not only is LT Technology Services offering better solutions than the competition, but they are also supporting their customers with best practices regarding cloud technology in order to help them achieve maximum return on their investments. [Published On: March 09, 2023]
Cognizant to acquire Mobica to enhance its IoT software engineering service offerings
Cognizant has recently completed the acquisition of Mobica, a leading provider of Internet of Things (IoT) software engineering and development services for the automotive market. With this partnership, Cognizant will be able to benefit from Mobica's expertise in designing, testing, and implementing solutions that use advanced analytics and artificial intelligence. This will help them to provide even more effective solutions for their customers in the transportation sector. The combined capabilities should also allow them to execute much larger projects through less conventional approaches like SaaS and PaaS models. By merging their business practices, Cognizant will create an integrated platform for automotive engineers to access essential applications needed for product development, system design, and testing. This could help speed up processes related to product innovation and time-to-market through streamlined technology solutions. [Published On: January 24, 2023]
Strategy Analysis & Recommendation
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Automotive Engineering Services Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the Automotive Engineering Services Market, highlighting leading vendors and their innovative profiles. These include 3E Rapid Prototyping Ltd, AKKA Technologies SE, Altair Engineering Inc., ALTEN Group, ASM Technologies Limited, Aurora Innovation Inc., AVL List GmbH, Belcan, LLC, Bertrandt AG, BOLAB Systems GmbH, Capgemini SE, Continental AG, DEKRA SE, DesignTech Systems Pvt. Ltd., Ecolab, EDAG Engineering Group AG, FEV Group GmbH, Fidelis Engineering Associates, Gantner Instruments GmbH, GlobalLogic Inc. by Hitachi, Ltd., Grune Technica, Inc., Harman International Industries, Incorporated by Samsung Electronics Co., Ltd., HCL Technologies Limited, Horiba, Ltd., IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Intertek Group PLC, Larsen & Toubro Limited, LeddarTech Inc., Lucid Group, Inc., N-iX Ltd., Oliver Wyman, LLC, Onward Technologies Limited, P3 group GmbH, Pilot Systems International, Proterra Inc., ProtoCAM, RA Global Tech Solutions LLP, Ricardo PLC, Robert Bosch GmbH, Roush Enterprises, Inc., Sigma Thermal, System Controls Technology Solutions Pvt. Ltd., TAAL Tech India Private Limited, Tech Mahindra Limited, The Productivity Team, LLC, TÜV Rheinland AG, Valmet Automotive PLC, Waymo LLC, Wipro Limited, and Zendrive India Private Limited.
Market Segmentation & Coverage
This research report categorizes the Automotive Engineering Services Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Service Type
- Concept or Research
- Designing
- Prototyping
- System Integration
- Testing
- Location
- In-House
- Outsource
- Vehicle Type
- Commercial Vehicle
- Passenger Car
- Engine Type
- Electric Vehicle
- Internal Combustion Engine
- Application
- ADAS & Safety
- Chassis
- Connectivity Services
- Electrical, Electronics & Body Controls
- Interior, Exterior & Body Engineering
- Powertrain & Exhaust
- Simulation
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
This research report offers invaluable insights into various crucial aspects of the Automotive Engineering Services Market:
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
Additionally, the report addresses key questions to assist stakeholders in making informed decisions:
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Automotive Engineering Services Market, by Service Type
- Automotive Engineering Services Market, by Location
- Automotive Engineering Services Market, by Vehicle Type
- Automotive Engineering Services Market, by Engine Type
- Automotive Engineering Services Market, by Application
- Americas Automotive Engineering Services Market
- Asia-Pacific Automotive Engineering Services Market
- Europe, Middle East & Africa Automotive Engineering Services Market
- Competitive Landscape
- List of Figures [Total: 25]
- List of Tables [Total: 473]
- List of Companies Mentioned [Total: 50]
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