The global automotive engineering services market is projected to grow from an estimated $153.2 billion in 2022 to $243.9 billion by 2028, registering a CAGR of 8.1%.
The growing demand of zero-emission vehicles, advancements in technologies such as ADAS, battery management, connectivity, among others, and rising commercial transport are expected to increase the demand for automotive engineering services around the world. For instance, the demand for automotive engineering services for electric vehicles such as battery development & management, charger testing, motor control, among others, is increasing due to the increased demand for electric passenger cars and commercial vehicles due to their lower operating noise and lower emissions as compared to their ICE counterparts. At present, major global automotive OEMs outsource processes such as designing, prototyping, system integration, and testing to an external source. The demand for outsourcing automotive engineering services has been increased from last few years. The outsourcing of automotive engineering services can help automotive OEMs by integrating product development with related operations such as engineering and warranty management.
Prototyping segment to be the largest market by value during forecast period
Prototyping is estimated to be the largest service type segment of the automotive engineering services market during the forecast period. Prototyping enables industry professionals to create functional models of a new part design in a short time. In addition, the adoption of 3D printing technology has significantly reduced the time it takes to manufacture the functional model. In the automotive industry, 3D printing has created opportunities for the creation of new designs (making products safer, cleaner, and lighter) and other 3D plastic prototype parts, with shorter delivery times and at lower costs. Rapid prototyping is done to keep the assembly line moving fast while staying flexible to adopt new designs. A visual prototype represents the appearance of a product but not the functionality. Prototyping allows OEMs to test new parts and technologies before sending them to the actual assembly line. Without prototyping, these parts and technologies can be dangerous or inefficient for the assembly line. It can also lead to stalled or canceled production runs. Incorporation of new features requires prototyping before final implementation. Thus, the demand for prototyping in automotive engineering services is expected to grow during the forecast period.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=151284922
In-house to be the fastest growing segment during the forecast period
The In-house segment is estimated to be larger than the outsource segment during the forecast period. To control the overall vehicle engineering process, OEMs prefer to keep the research and design in-house. Many OEMs have established their in-house teams for automotive software, such as BMW’s Car-IT and Volkswagen’s Car Software, and few other companies are developing long-term partnerships or joint ventures with application software specialists like Audi-Elektrobit. Performing engineering services in-house has many advantages over outsourcing those services such as streamlined communication, improved quality control, faster time to market, ability to address changes in technology, and improved customer satisfaction. This leads to OEMs preferring in-house R&D for major applications, which are developed by them, or with the participation of others. For instance, Alten Group, a French engineering service provider, supported the in-house development of the powertrain of a British car manufacturer.
“Asia Pacific to be the fastest growing market for automotive engineering services during the forecast period”
Asia Pacific is estimated to be the fastest-growing market. The growth of the Asia Pacific automotive engineering services market can be attributed to favorable government regulations and the high adoption of electric passenger cars and commercial vehicles. The region has the presence of top outsourcers, such as Great Wall Motor, Tata Motors, Daimler, Volvo, and Groupe PSA. Japan is estimated to be the largest market during the forecast period. Japan plays a vital role in the development of advanced electronic technology in Asia Pacific. With advancements in technologies such as smart components, ADAS and safety solutions, autonomous driving and connectivity solutions, EV powertrains and batteries, and fuel cell technology, the automotive engineering services market in Japan is expected to grow.
Key Market Players:
The automotive engineering services market is dominated by established players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium), and HCL Technologies (India), among others.
Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=151284922
