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3. Automotive Engineering Services Market Size & Share - Future Growth Expectations

The global automotive engineering services market is projected to grow from an estimated USD 153.2 billion in 2022 to USD 243.9 billion by 2028, registering a CAGR of 8.1%. Leading automotive engineering services (AES) providers have set up their R&D infrastructure across the world to provide AES such as concept/research, designing, prototyping, system integration, testing, among others to OEMs and component manufactures. Factors like rising demand for zero-emission vehicles and strong government support have led to an increased demand of AES among automakers. Europe is expected to be impacted by ongoing geo-political problems in the region along with the upcoming recession. This will lead to a change in R&D investment plans of OEMs and AES providers.

The Automotive Engineering Services Market is poised for substantial growth in the coming years, driven by several key factors:

• Rise of Electric and Autonomous Vehicles
• Technological Advancements
• Stringent Emission Regulations
• Shift Towards Mobility-as-a-Service (MaaS)
• Digitalization and Industry 4.0
• Globalization and Outsourcing
• Focus on Customer Experience and Safety
• Emerging Markets Growth

These factors are expected to contribute to substantial growth opportunities in the automotive engineering services market, as automotive manufacturers continue to invest in innovation and technology to meet evolving consumer demands and regulatory requirements.

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• Rise of Electric and Autonomous Vehicles: The need for specialist engineering services in fields including electric drivetrain development, battery technology, software integration, sensor fusion, and vehicle-to-everything (V2X) communication is being driven by the growing demand for electric cars (EVs) and autonomous vehicles (AVs).
   
• Technological Advancements: The need for specialized technical skills to design, develop, and integrate advanced driver assistance systems (ADAS), digital twin technology, and connected automobiles is growing due to the rapid improvements in automotive technology.
   
• Stringent Emission Regulations: In order to comply with global pollution rules and lessen their environmental impact, automakers are being compelled to invest in engineering services that concentrate on vehicle lightweighting, alternative propulsion systems, and sustainability programs.
   
• Shift Towards Mobility-as-a-Service (MaaS): Engineering services are in high demand as a result of the growth of mobility-as-a-service (MaaS) models, which include carsharing, ridesharing, and subscription-based services. These services aim to provide flexible and scalable vehicle platforms that are ideal for shared mobility applications.
   
• Digitalization and Industry 4.0: With the implementation of sector 4.0 principles, the automotive sector is undergoing a digital revolution that is driving up demand for engineering services in domains including digital design and simulation, smart manufacturing, and predictive maintenance.
   
• Globalization and Outsourcing: In order to gain access to specialized knowledge, cut costs, and shorten the time it takes for new products and technologies to reach the market, automotive manufacturers are increasingly outsourcing engineering services to suppliers and organizations that specialize in both domestic and foreign markets.
   
• Focus on Customer Experience and Safety: The need for engineering services to create cutting-edge features like sophisticated infotainment systems, customized driving experiences, and improved safety measures is being driven by an increasing focus on improving the customer experience and vehicle safety.
   
• Emerging Markets Growth: The demand for engineering services across the entire automotive value chain is being driven by rising vehicle ownership, urbanization, and infrastructure development in emerging markets like China, India, and Southeast Asia, which presents opportunities for the automotive engineering services market.

Automotive Engineering Services Market Share - Global Industry Landscape

• Capgemini (France)
• IAV Automotive Engineering (Germany)
• Tech Mahindra (India)
• AKKA Technologies (Belgium)
• HCL Technologies (India)

These companies collectively hold a substantial portion of the global Automotive Engineering Services market, catering to the diverse needs of automotive manufacturers and suppliers worldwide.

• Capgemini (France): A top supplier of engineering, technology, and consulting services worldwide. Market share varies according to the automotive engineering services category, but because of Capgemini's broad global reach and depth of experience, it is usually significant.
   
• IAV Automotive Engineering (Germany): A well-known supplier of engineering services with a focus on automotive engineering, specifically on electronics, vehicle integration, and powertrain. IAV is known for providing high-caliber technical solutions, even though its market share may not be as significant as that of certain global corporations.
   
• Tech Mahindra (India): A significant participant in the worldwide market for automotive engineering services, renowned for its proficiency in software engineering, linked cars, and digital transformation. Its rising presence in the automobile sector is shown in its steady growth in market share.
   
• AKKA Technologies (Belgium): A technology and engineering consulting organization based in Europe that specializes in automotive engineering services. AKKA Technologies' wide variety of engineering capabilities and strategic relationships have allowed it to gain a large market share, especially in Europe.
   
• HCL Technologies (India): HCL Technologies is a significant participant in the automotive engineering services industry, providing a variety of engineering services such as product design, embedded systems development, and aftermarket solutions. Due to investments in digitalization and automotive innovation, its market share has been growing.

Related Report

Automotive Engineering Services Market by Application, Service Type, Location (In-house, Outsource), Vehicle Type (Passenger Cars, Commercial Vehicles), Nature Type (Body Leasing, Turnkey), Propulsion (ICE, Electric) and Region - Global Forecast to 2028