[181 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.
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
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Automotive Engineering Services Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Automotive Engineering Services Market.
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.
The value chain of the Automotive Engineering Services Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Automotive Engineering Services Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Automotive Engineering Services Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Automotive Engineering Services Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Automotive Engineering Services Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Automotive Engineering Services Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Automotive Engineering Services Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
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).
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.
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: 2023-03-14]
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: 2023-03-09]
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: 2023-01-24]
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.
The report delves into recent significant developments in the Automotive Engineering Services Market, highlighting leading vendors and their innovative profiles. These include Robert Bosch GmbH, Ecolab, Proterra Inc., RA Global Tech Solutions LLP, ALTEN Group, BOLAB Systems GmbH, Roush Enterprises, Inc., HCL Technologies Limited, Grune Technica, Inc., N-iX Ltd., DesignTech Systems Pvt. Ltd., EDAG Engineering Group AG, AVL List GmbH, Ricardo PLC, Altair Engineering Inc., Pilot Systems International, TÜV Rheinland AG, FEV Group GmbH, GlobalLogic Inc. by Hitachi, Ltd., Tech Mahindra Limited, Continental AG, Aurora Innovation Inc., ProtoCAM, Bertrandt AG, Fidelis Engineering Associates, Lucid Group, Inc., Horiba, Ltd., Larsen & Toubro Limited, Belcan, LLC, The Productivity Team, LLC, Gantner Instruments GmbH, Waymo LLC, DEKRA SE, Capgemini SE, Onward Technologies Limited, P3 group GmbH, Oliver Wyman, LLC, Zendrive India Private Limited, Wipro Limited, System Controls Technology Solutions Pvt. Ltd., ASM Technologies Limited, 3E Rapid Prototyping Ltd, TAAL Tech India Private Limited, LeddarTech Inc., AKKA Technologies SE, Sigma Thermal, Harman International Industries, Incorporated by Samsung Electronics Co., Ltd., IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Valmet Automotive PLC, and Intertek Group PLC.
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
- 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.
- 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
- Competitive Portfolio
- List of Figures [Total: 26]
- List of Tables [Total: 472]
- List of Companies Mentioned [Total: 50]
Automotive Engineering Services Overview:
Automotive engineering services involve designing, developing, testing, and manufacturing various automotive components such as engines, transmission systems, and safety features, among others. These services also cover creating software or electronic systems that improve vehicle performance or allow for the integration of intelligent technologies like autonomous features or driver assistance systems.
Servicing the Autonomous Vehicles Landscape:
One of the primary driving forces behind the growth of automotive engineering services is the increasing demand for autonomous vehicles. As more and more car manufacturers look to incorporate self-driving technology into their fleet, automotive engineering services play a crucial role in ensuring these vehicles meet the necessary safety and reliability standards. These services also work on developing innovative solutions like advanced sensors, vehicle-to-vehicle communication systems, and self-driving algorithms that are necessary components of autonomous vehicles.
Enhancing Efficiency and Reducing Emission:
Another important aspect that automotive engineering services cover includes developing powertrain systems that improve fuel efficiency and reduce harmful emissions. Services in this area may involve researching and developing hybrid and fully electric drivetrains to help reduce the dependency on gasoline-powered vehicles. Additionally, automotive engineering services also cover creating lightweight components to improve vehicle aerodynamics and reduce fuel consumption.
Safety Features and Regulations:
Automotive engineering services have always placed safety at the forefront of their priorities. As such, services in this area focus on developing safety features such as adaptive cruise control, lane-keeping assistance, and collision avoidance systems to help improve the overall safety of vehicles. These services also help ensure that vehicles meet government regulations and safety standards.
Future Developments and Possibilities:
As the automotive industry continues to evolve, so do the developments and possibilities for automotive engineering services. For instance, advancements in electric and autonomous vehicles are driving the need for more innovative and advanced engineering solutions like integrating renewable energy systems, artificial intelligence, machine learning, and cybersecurity. These developments may pave the way for more efficient and sustainable automotive engineering services in the future, further bolstering the growth of the automobile industry.
The need for reliable and cutting-edge automotive engineering services has significantly expanded due to the automotive industry's expansion, particularly regarding the creation of autonomous cars. The development of self-driving features, powertrain systems, safety features, and governmental laws are just a few of the many topics these services cover, all essential to the automobile industry. These services will continue to adapt as the industry develops, providing more cutting-edge and environmentally friendly answers to the growing demands of the sector.
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