In 2022, the global Automotive Engineering Services Market was valued at USD 1.46 billion and is expected to reach USD 1.6 billion in 2023. According to Future Market Insights (FMI), the market is projected to grow at a CAGR of 7.17% from 2023 to 2033, potentially achieving approximately USD 3.2 billion by 2033.
The expansion of the automotive engineering services market is driven by a rising demand for advanced technological solutions, such as connectivity features and collision avoidance systems. Additionally, the focus on developing lightweight vehicles—driven by government regulations and initiatives from manufacturers aimed at enhancing fuel efficiency—also contributes to market growth.
Government regulations requiring safety-related systems play a significant role in advancing the market. Moreover, the increasing adoption of electric and hybrid vehicles is boosting production needs and further fueling the growth of automotive engineering services.
Comprehensive Market Insights: Full Report Overview
Key Takeaways from the Market Study
- The global automotive engineering services market grew at a CAGR of 6.42% from 2018 to 2022.
- India is projected to experience a CAGR of 6.8% from 2023 to 2033.
- China is expected to grow at a CAGR of 7.2% during the same period.
- In 2022, North America held a market share of 43.2%.
- The European market accounted for a market share of 48.2% in 2022.
- Within the service segment, prototypes represented a market share of 56.2% in 2022.
“Demand for advanced and autonomous connectivity features is influencing innovation intensely and is one of the major key drivers of the automotive engineering services market”, – commented a Future Market Insights analyst.
Market Competition
Companies aim to develop cutting-edge solutions during the entire life cycle of a product, from the design and inception phase to the end of its service life. They also strategically locate their main factories in emerging markets to make it ideal to service the developing markets.
Key companies profiled in the Automotive Engineering Services Market
- FEV Group GmbH
- IAV
- Ricardo
- AVL
- ALTEN Group
- Bertrandt
- ALTRAN
- L&T Technology
- Capgemini Service SAS
- T-NET JAPAN Co., Ltd.
- DesignTech Systems.
- Tech Mahindra Limited
- EDAG Engineering GmbH
- Horiba, Ltd.
Some of the new developments in the automotive engineering services market are:
- In May 2023, Tech Mahindra inaugurated Technology Development Center in Oman.
- In August 2023, Temasek is planning to invest 12 billion rupees ($145 million) in Mahindra & Mahindra Ltd.’s electric vehicle unit, valuing it at US$ 9.8 billion.
Key Segments Profiled in Automotive Engineering Services Market
By Service Type:
- Testing & Diagnostic
- System Integration
- Designing
- Prototyping
- Research
By Applications:
- ADAS & Safety
- Body & Chassis
- Powertrain & Exhaust
- Interior, Exterior & Body Engineering
- Electrical, Electronics & Body Controls
- Connectivity Services
- Simulation
By Location:
- Outsourced Services
- In-house Services
By Vehicle Type:
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- Middle East & Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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