What Has Been the Progress and Growth of the Automotive Engineering Service Provider Market in Recent Years?
The automotive engineering service provider market has seen considerable growth due to a variety of factors.
• The automotive engineering service provider market has experienced robust growth, expected to grow from $162.22 billion in 2024 to $175.96 billion in 2025, with a CAGR of 8.5%.
The growth is driven by the expansion of automotive markets, the globalization of industries, shifting consumer preferences towards sustainability, urbanization, and a growing emphasis on vehicle safety features.
What Is The Expected Growth In The Automotive Engineering Service Provider Market Size Evolve over the Forecast Period?
The automotive engineering service provider market is expected to maintain its strong growth trajectory in upcoming years.
• The automotive engineering service provider market is projected to grow significantly, reaching $240.8 billion by 2029 at a CAGR of 8.2%.
Growth is driven by stricter emission norms, safety regulations, efficiency focus, adoption of Industry 4.0, environmental awareness, and the rise of electric vehicles. Key trends include technological advancements, the integration of IoT and AI, the development of lightweight materials, self-driving car innovations, and 3D printing.
What Main Forces Are Fueling Expansion In The Automotive Engineering Service Provider Market?
The rising demand for advanced driver-assistance systems (ADAS) is expected to propel the growth of the automotive engineering service provider market. ADAS uses automated technologies such as cameras and sensors to assist drivers and enhance vehicle safety. The demand for ADAS is growing due to safety regulations, consumer interest in accident-reduction technologies, and the role of ADAS in enabling autonomous vehicles. According to the Highway Loss Data Institute, by 2026, rear cameras and parking sensors will be installed in 71% and 60% of registered vehicles, respectively. Therefore, the increasing demand for ADAS is driving the automotive engineering service provider market.
What Are The Primary Segments In The Global Automotive Engineering Service Provider Market?
The automotive engineering service provider market covered in this report is segmented –
1) By Service: Engine, Chassis, Transmission, Car And Body In White (BIW), Seating Systems, Cooling And Heating, Ventilation, And Air Conditioning (HVAC), Interior And Exterior Trims, Other Services
2) By Module Type: Intelligent Power Module (IPM), Power Integrated Module (PIM)
3) By Vehicle Type: Passenger Car, Commercial Vehicle, Two-Wheeler
4) By Application: Mechanical, Electrical And Electronics, Software, Safety
5) By End User: Original Equipment Manufacturers (OEMs), Automotive Component Suppliers, Other End Users
Subsegments:
Here is the list following the requested format:
1) By Engine: Engine Design and Development, Engine Testing and Calibration, Powertrain Optimization
2) By Chassis: Chassis Design and Prototyping, Suspension System Design, Chassis Testing and Validation
3) By Transmission: Transmission Design and Development, Gearbox System Design, Transmission Efficiency and Performance Testing
4) By Car and Body in White (BIW): BIW Design and Engineering, BIW Manufacturing Process Optimization, BIW Assembly and Structural Integrity Testing
5) By Seating Systems: Seating Design and Prototyping, Safety Testing for Seating, Seat Comfort and Ergonomics Engineering
6) By Cooling and Heating, Ventilation, and Air Conditioning (HVAC): HVAC System Design and Optimization, Thermal Management Solutions, Cabin Comfort and Climate Control Testing
7) By Interior and Exterior Trims: Interior and Exterior Styling and Design, Trim Materials Engineering, Interior Comfort and Functionality Testing
8) By Other Services: Vehicle Lightweighting, Autonomous Vehicle Engineering, Electric Vehicle System Integration and Design
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Which Emerging Market Trends Are Altering The Automotive Engineering Service Provider Industry?
Companies in the automotive engineering service provider market are focusing on connected services technology to improve customer experience. Connected services allow vehicles to connect to the internet and cloud-based services for remote monitoring and control. In June 2024, Tata Elxsi, in partnership with Red Hat, worked on accelerating 5G-connected vehicle applications through Tata Elxsi's Connected Vehicle Platform (CVP) and Red Hat's In-Vehicle OS. This collaboration aims to enhance cloud automation and 5G application placement.
Who Are the Key Players In The Automotive Engineering Service Provider Market?
Major companies operating in the automotive engineering service provider market are:
• Robert Bosch GmbH
• Magna International Inc.
• Capgemini Technology Services Limited
• HCL Technologies Limited
• Harman International Industries Inc.
• Tech Mahindra Limited
• Alten Group
• Intertek Group plc
• AVL LIST GmbH
• FEV GmbH
• HORIBA Ltd.
• Bertrandt AG
• ARRK Product Development Group
• EDAG Engineering GmbH
• IAV GmBH
• Altair Engineering Inc.
• Ricardo Plc
• Semcon
• Continental Engineering Services Ltd.
• P3 Automotive GmbH
• Link Engineering Company
• Kistler Holding AG
• Magneti Marelli S.p.A
What Is The Most Dominant Region In The Automotive Engineering Service Provider Market?
North America was the largest region in the automotive engineering service provider market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive engineering service provider market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
