The global 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. High demand for electric passenger and commercial vehicles, as well as increasing R&D investments in autonomous vehicles, will be driving the growth of the automotive engineering services market.
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).
Automotive engineering services deal with the design and development of automotive components and related technologies to address complex technical challenges in the vehicle development value chain. The engineering service process starts with conceptualization, designing, prototyping, system integration, and testing. Automotive engineering services include vehicle connectivity services, ADAS (advanced driver-assistance systems) and safety systems, interior & exterior design and body engineering services, passenger comfort, and others. These services assess different areas in a vehicle and provide data to check on a vehicle’s development and validation.
The advent of electric vehicles and connected vehicles has shifted the focus of automotive OEMs from mechanical components in a vehicle to electronic components and connectivity features. Advanced connectivity features have led to several innovations and trends. With continuous developments in connectivity, infotainment, and advanced driver assistance systems, automotive suppliers are now focusing on electronics and software in automobiles. The growing complexity and intricate automotive system involving various platforms, multiple suppliers, and numerous transfer protocols have accentuated the need to develop, test, and support multiple communication technologies. This, in turn, has raised the demand for automotive engineering services.
Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=151284922
The 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.
Many engineering service providers are also planning their organic and inorganic investments in the Asia Pacific, thus creating growth opportunities for the market in the region. For instance, in May 2019, FEV opened a new mobility centre in Pune to expand its presence in India. The new mobility centre would pave the way for advanced technologies in the Indian market. In April 2019, Ricardo and Geely Auto Group (Geely), one of China’s leading automakers, partnered to develop advanced hybrid transmission, which would be specifically designed for a range-extended plug-in hybrid.
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 smart 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 huge resources to develop electrical, electronics, and body control solutions in automotive engineering services.
Company Name: MarketsandMarkets
Contact Person: Mr. Aashish Mehra
Email: Send Email
Address:630 Dundee Road Suite 430
State: IL 60062
Country: United States