Automotive Engineering Services Market estimated to be worth $253.9 billion by 2027
The Automotive Engineering Services market is projected to grow at a CAGR of 8.8% from USD 153.3 billion in 2021 to USD 253.9 billion by 2027, that's According to a new market research report published by MarketsandMarkets.
They say the growth of Automotive Engineering Services is driven by the rising sales of electric vehicles, increasing R&D investments in the automotive industry, the advent of autonomous cars, and the high implementation of connectivity services.
European enterprises such as Daimler account for 50% of the predicted spend.
Europe is estimated to account for a share of 43.0% of the global Automotive Engineering Services Market in 2021. The market in this region is projected to register a CAGR of 8.9% during the forecast period.
For the market analysis, Europe includes Germany, France, Spain, the UK, Italy, Russia, and the Rest of Europe. OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) offer growth opportunities for the Automotive Engineering Services Market in the region. European automotive enterprises dominate the global landscape, accounting for almost 50% of the R&D spending led by firms such as BMW, Continental, and Daimler. The increasingly stringent regulations related to environmental issues encourage market players to test and develop advanced vehicles, further boosting the market for automotive engineering services. For example, in March 2017, L&T Technology Services unveiled a new delivery centre for a German OEM in Munich. The centre would cater to engineering and R&D services for the company's suite of infotainment consoles and its family of hybrid electric vehicles. In October 2018, Siemens Mobility launched a field test for autonomous driving at the Siemens campus in Munich-Perlach, Germany, in partnership with IAV GmbH (IAV Automotive Engineering), Institute for Climate Protection, Energy and Mobility (IKEM), Emm Solutions GmbH, UTB Projektmanagement GmbH, and the Technical University of Munich (TUM). The project was established for testing the interaction between roadside infrastructure, cloud-based software services, and autonomous electric vehicles.
Electrical, electronics, and body controls is expected to lead the Automotive Engineering Services Market.
Automotive electrical, electronics, and body controls have a high value-added proportion in vehicle development. Electronics and electrical systems play a crucial role in handling all functions dedicated to passenger comfort and convenience. Services in automotive electrical and electronics include power management module, climate control, power window, body control module, and intelligent mirror and wipers. The trend is expected to grow due to the adoption of electric vehicles and complex electronic components for a safer and functional driving experience. Service providers such as L&T Technology Services and FEV have invested considerable resources to develop electrical, electronics, and body control solutions in automotive engineering services.
Designing segment is expected to be the fastest service type in the forecast
The design process is used in the final sketching of the product. The 2D rendering process is crucial to visualize whether the design is feasible or not. Once the design seems viable and practical, computer-aided design (CAD) is used to make a 3D model. Clay modelling then helps achieve a physical model of the design. The car's design can either be done by the internal team of automotive manufacturers or the manufacturer can outsource it.
The Automotive Engineering Services Market is dominated by global players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), and Bertrandt AG (Germany). The key strategies adopted by these companies to sustain their market position are new product developments, mergers & acquisitions, supply contracts, partnerships, expansions, collaborations, investments, and contracts & agreements.
The full report named "Automotive Engineering Services Market by Application (ADAS & Safety, Body Electrical & Electronics, Chassis, Connectivity, Interior/Exterior, Powertrain & Exhaust, Battery, Motor, Charger Test, Simulation), Service, Location & Vehicle - Forecast to 2027", is available from MarketsandMarkets.