What Has Contributed to The Growth in The Automotive Engineering Services Market Recently?
Over the past years, the Automotive Engineering Services Market has shown consistent growth.
• Its size expanded from $266.62 billion in 2024 to an impressive $294.7 billion in 2025, at a compelling CAGR of 10.5%.
This growth can be largely ascribed to the globalization of the automotive industry, an increased complexity of vehicle systems, and an emphasis on fuel efficiency and emissions reduction. Added to these, the growth in automotive electronics and software, as well as increased demand for innovative vehicle designs and features, have fueled the market's upward trajectory.
What Are The Predictions for The Automotive Engineering Services Market Growth in The Upcoming Years?
The automotive engineering services market is poised for steady growth in the near future.
• The projected market size for 2029 stands at $439.65 billion, maintaining a potent CAGR of 10.5%.
Principal factors supporting this growth include the rise of electric and autonomous vehicles, the accelerated adoption of connected car technologies, increased focus on sustainability and green engineering, and integration of advanced driver-assistance systems (ADAS). Furthermore, the emerging trend of personalized and user-centric automotive experiences will propel market growth.
What Are the Key Factors Energizing the Growth of the Automotive Engineering Services Market?
The escalating demand for emission-less transportation is anticipated to catalyze the growth of the automotive engineering services market. The prevalent usage of fossil fuels like diesel and gasoline results in the release of greenhouse gases such as carbon dioxide, methane, among others, contributing to climate change. This has spurred the demand for emission-less transport mediums like electric vehicles. In line with this trend, in January 2024, the UK Department for Transport reported that 80% of new cars and 70% of new vans sold in Great Britain will now be zero-emission by 2030, increasing to 100% by 2035. This demand, along with increased awareness of emission-less transportation, is set to propel the automotive engineering services market.
How Is The Automotive Engineering Services Market Segmented?
The automotive engineering services market can be categorized as follows –
1) By Vehicle Type: Passenger Cars, Commercial Vehicles
2) By Service Type: Concept Or Research, Designing, Prototyping, System Integration, Testing
3) By Location Type: On-Shore, Off-Shore
4) By Application: Electrical, Electronics and Body Controls, ADAS and Safety, Chassis, Connectivity Services, Powertrain and Exhaust, Interior, Exterior, and Body Engineering, Simulation
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What Developments Are Shaping The Automotive Engineering Services Market?
Companies active in the automotive engineering services market are embracing technological advancements such as parking development solutions to enhance efficiency, optimize space utilization, and improve user experience. One such example is Applied Intuition, a US-based software company, that launched an automated parking development solution in March 2024. This solution is expected to expedite the development, testing, and deployment of automated parking systems, offering improved safety and reliability.
Who Are The Key Players In The Automotive Engineering Services Market?
Significant players in the automotive engineering services market include:
• Capgemini SE
• IAV GmbH
• Tech Mahindra Limited
• AKKA Technologies Group
• Bertrandt AG
• Harman International Industries Inc.
• ALTEN Cresttek Engineering Solutions Pvt Ltd.
• L&T Technology Services Ltd.
• Fev Europe GmbH
• AVL List GmbH
• Ricardo plc
• EDAG Engineering GmbH
• Valmet Automotive Oyj
• Onward Technologies Ltd.
• T-Net Japan Co. Ltd.
• Kistler Holding AG
Which Region Dominates The Automotive Engineering Services Market?
Asia-Pacific was the largest contributor to the automotive engineering services market in 2024. The regions included in the automotive engineering services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
