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.
Vehicle manufacturers are increasingly focusing on the implementation of advanced technologies in vehicles. The megatrends of vehicle lightweighting, autonomous vehicles, connectivity services, and electrification of vehicles will transform the automotive industry. These trends would also create revenue generation opportunities for automotive engineering service providers.
Opportunity: Standardization of safety features:
Governments of several countries have mandated safety features in upcoming vehicles to minimize incidents of over-speeding and fatal accidents. For example, the Union Road Transport Ministry of India proposed a mandate to incorporate advanced safety features, including Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB), in new vehicles between 2022 and 2023. The authority has also stressed that advanced safety features are required in all vehicles in India and cannot be confined to luxury vehicles only.
Likewise, the European Commission adopted a proposal in May 2018 for passive and active safety improvements to reduce accident-related injuries and better protect vehicle occupants, pedestrians, and cyclists. Advanced safety features include advanced emergency braking, emergency lane-keeping systems, and improved car crash tests. All these mandates are crucial for overall road safety. Automotive manufacturers need to abide by the new mandates to improve passenger safety. For example, in Europe, a new eCall system must be installed in any passenger vehicle sold after April 2018. This system dials the emergency number and communicates vehicle location in the event of serious road accidents. According to the European Commission, it can reduce the emergency response time by 40% in urban areas. All these mandates will have a serious impact on vehicle safety in the coming years. OEM initiatives to implement these features early will create a huge demand for these solutions from engineering service providers.
Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=151284922
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).
The Asia Pacific is estimated to be the fastest-growing market for automotive engineering services during the forecast period. The increasing sales of electric vehicles and the implementation of artificial intelligence during vehicle manufacturing are the major factors driving the growth of the automotive engineering services market in the region. Electric vehicles require a new driveline, battery technology, chassis design, and connectivity services. Also, the governments of several countries in the region are proactively building supporting infrastructure for electric vehicles. Governments are encouraging people to adopt electric vehicles to reduce carbon emissions in urban areas. Government initiatives for emission-free transportation would increase the demand for advanced automotive engineering services during the forecast period.
Europe is estimated to be the largest market for automotive engineering services. It accounts for a share of 43.0% of the global automotive engineering services market in 2021, and the market in this region is projected to register a CAGR of 8.9% during the forecast period.
The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) offers growth opportunities for the automotive engineering services market in the region. European automotive enterprises dominate the global landscape, accounting for almost 50% of the R&D spending led by firms such as BMW, Continental, and Daimler. The increasingly stringent regulations related to environmental issues are encouraging market players to test and develop advanced vehicles, further boosting the market for automotive engineering services. For example, in March 2017, L&T Technology Services unveiled a new delivery centre for a German OEM in Munich. The centre would cater to engineering and R&D services for the company’s suite of infotainment consoles and its family of hybrid electric vehicles. In October 2018, Siemens Mobility launched a field test for autonomous driving at the Siemens campus in Munich-Perlach, Germany, in partnership with IAV GmbH (IAV Automotive Engineering), Institute for Climate Protection, Energy and Mobility (IKEM), Emm Solutions GmbH, UTB Projektmanagement GmbH, and the Technical University of Munich (TUM). The project was established for testing the interaction between roadside infrastructure, cloud-based software services, and autonomous electric vehicles.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=151284922
In the automotive engineering services market, by service type, the prototyping segment is projected to lead 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 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. There are two main ways in which additive manufacturing can be a crucial aspect of the competition between auto manufacturers.
