The global Automotive Engineering Services market gathered revenue around USD 150.1 billion in 2020 and market is set to grow USD 256.8 Billion by the end of 2027 and is estimated to expand at a modest CAGR of 8.9% during the prediction period 2021 to 2027. Factors such as the advent of autonomous vehicles, the introduction of 5G network in the automotive industry, OEM and government focus on electric vehicles, use of advanced technology, concerns of vehicle and passenger safety, and vehicle lightweighting are driving the automotive engineering services market.
This research report purposes at stressing the most lucrative growth prospects. The aim of the research report is to provide an inclusive valuation of the Automotive Engineering Services market and it encompasses thoughtful visions, actualities, industry-validated market findings, historic data, and prognoses by means of appropriate set of assumptions and practice. Global Automotive Engineering Services market report aids in comprehending market structure and dynamics by recognizing and scrutinizing the market sectors and predicted the global market outlook.
COVID-19 Impact Assessment on Market Landscape
The report comprises the scrutiny of COVID-19 lock-down impact on the income of market leaders, disrupters and followers. Since lock down was instigated differently in diverse regions and nations, influence of same is also dissimilar across various industry verticals. The research report offers present short-term and long-term influence on the market to assist market participants across value chain makers to formulate the framework for short term and long-lasting tactics for recovery and by region.
Automotive Engineering Services market report empower readers with all-inclusive market intelligence and offers a granular outline of the market they are operational in. Further this research study delivers exceptional combination of tangible perceptions and qualitative scrutiny to aid companies accomplishes sustainable growth. This report employs industry-leading research practices and tools to assemble all-inclusive market studies, intermingled with pertinent data. Additionally, this report also emphases on the competitive examination of crucial players by analyzing their product portfolio, pricing, gross margins, financial position, growth approaches, and regional occurrence.
Opportunity: Standardization of safety features
Governments of several countries have mandated safety features in upcoming vehicles to minimize incidents of over-speeding and fatal accidents. For example, the Union Road Transport Ministry of India proposed a mandate to incorporate advanced safety features, including Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB), in new vehicles between 2022 and 2023. The authority has also stressed that advanced safety features are required in all vehicles in India and cannot be confined to luxury vehicles only.
Likewise, the European Commission adopted a proposal in May 2018 for passive and active safety improvements to reduce accident-related injuries and better protect vehicle occupants, pedestrians, and cyclists. Advanced safety features include advanced emergency braking, emergency lane-keeping systems, and improved car crash tests. All these mandates are crucial for overall road safety. Automotive manufacturers need to abide by the new mandates to improve passenger safety. For example, in Europe, a new eCall system must be installed in any passenger vehicle sold after April 2018. This system dials the emergency number and communicates vehicle location in the event of serious road accidents. According to the European Commission, it can reduce the emergency response time by 45% in urban areas. All these mandates will have a serious impact on vehicle safety in the coming years. OEM initiatives to implement these features early will create a huge demand for these solutions from engineering service providers.
The Asia Pacific automotive engineering services market is projected to be the fastest by 2027
Asia Pacific is the fastest-growing market for automotive engineering services due to the high adoption of electric passenger cars, especially in China. The markets in South Korea, India, and Japan are also growing due to the policies and mandates instituted by their respective governments to reduce emission levels and increase the use of green technology. Japan accounts for the largest share of the automotive engineering services market in the Asia Pacific region. Many governments in the region are planning to replace their existing public fleets with electric vehicles in the future. The rapid growth of the logistics segment is also fueling the demand for commercial electric vehicles, which consequently boosts the demand for automotive engineering services.
Competitive Rivalry
Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.
Significant Market Participants Operational in the Automotive Engineering Services Market are:
Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), and Bertrandt AG (Germany) among others.
Unravelling the Critical Segments
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects including product type, application/end-user, and region. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for period 2017 to 2027 and covers subsequent region in its scope:
Based on the vehicle type:
- Passenger cars
- Commercial vehicles
Based on the service type:
- Concept/Research
- Designing
- Prototyping
- System Integration
- Testing
Based on the location:
Based on the application:
- ADAS and Safety
- Electrical, Electronics, and Body Controls
- Chassis
- Connectivity Services
- Interior, Exterior, and Body Engineering
- Powertrain and Exhaust
- Simulation
- Battery Development & Management
- Charger Testing
- Motor Control
- Others (portfolio management, acoustic engineering, energy consulting, quality management, and product lifecycle)
By Geography
North America
Europe
- Germany
- France
- United Kingdom
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Southeast Asia
- Rest of Asia Pacific
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
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