Global Automotive Engineering Service Provider Market Size, Share, Forecast Report, 2020-2027
The engineering service provider offers different engineering solutions to various industries and automotive is one of the industries. The engineering solutions are provided for various elements like mechanical, electrical, electronics, software, and others. These elements are used for several applications in automobiles. Automotive engineering solutions help OEMs and their suppliers digitize the product value chain and thereby minimize product development costs and reduce the time to market. The automotive engineering solutions include vehicle engineering, vehicle electronics, manufacturing IT, and product lifecycle management (PLM).
The major key driving factors for the growth of this market are the improving automotive infrastructure in countries such as China, Germany, Norway, US, and Japan, increasing production and sales of electric vehicles globally, increasing emission standards, and rising trend of vehicle electrification and digitization.
The lack of standard protocols for the development of engineering service provider and the rising complexity in the design causes to rise overall cost of vehicle are considered as the key restraining factors for the growth of this market. However, the development of autonomous and semi-autonomous vehicles, improving economy are providing enough opportunity growth of this market.
The global automotive engineering service provider market is projected to witness an exponentional growth during the study period. The rising production and increasing advancement in automobiles are accelerating the growth of automotive engineering Service Provider market. In addition, the growing focus by consumers and OEMs on minimizing power losses, producing light weight vehicles, increasing power density, and maximizing power savings are driving the growth this market.
The one of the key factors considered for the growth of this market is the growing competition between automotive engineering service provider component providers and increasing support from the local government to produce environment friendly vehicles, which has fortified the service provider to design and develop as per the guidelines set by governing bodies operating in automotive sector across different regions.
The global automotive engineering service provider market is segmented on the basis of services, application, vehicle type, and region. On the basis of services, the market has been segmented into engine, chassis, transmission, car and BIW, seating systems, cooling and HVAC, interior and exterior trims, and others. On the basis of application, the market has been segmented into Mechanical, Electrical & Electronics, Software, and Safety. On the basis of vehicle type, the market has been segmented into passenger car, commercial vehicle, and two-wheeler.
Geographically, the global automotive engineering service provider market has been segmented into four major regions namely North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region is estimated to hold the largest market share during the forecast period owing to growing automotive infrastructure and increases in sales of electric vehicles across the region. Moreover, increased uses of advanced technologies such as IoT, AI, and others in vehicles is expected to boost the demand for automotive engineering service provider market in this region.
The prominent players in the global automotive Engineering Service Provider market include Continental AG (Germany), AVL LIST GmbH (Germany), Robert Bosch GmbH (Germany), Bertrandt (Germany), HARMAN International (USA), EDAG Engineering GmbH (Germany), IAV Automotive Engineering, Inc. (Germany), Magna International Inc (Canada), Imaginative Automotive Engineering Services (India), and Contechs (UK).