(EnergyIndustry.Net, February 25, 2021 ) Meticulous Research® – leading global market research company published a research report titled “Automotive Engineering Services Market by Service Type (Concept, Prototyping, Testing), Application (Body Engineering, Powertrain, Infotainment, Chassis, Safety Systems, Electrical, Body Controls, Connected Cars), Vehicle Type – Global Forecast to 2027”
According to this latest publication from Meticulous Research®, the automotive engineering services market is expected to grow at a CAGR of 6.7% from 2020 to 2027 to reach $18.6 billion by 2027. The consistent growth of the market is majorly attributed to the factors such as rising sales of electric vehicles, increasing R&D investments in the automotive industry, and strict government policies and regulations for ICE vehicles. Besides, the advent of autonomous vehicles in mainstream automotive market and degrading environmental conditions are further creating tremendous growth opportunities for automotive engineering service providers to capitalize on this highly prospective market. However, issues associated with intellectual property (IP) constraints and ever dynamic business model is restricting the growth of the automotive engineering services market. Also, the impact of COVID-19 on the global automotive production as well as consumption has stunted the considerable growth rate of the market.
The global automotive engineering services market study presents historical market data in terms of value (2018 and 2019), estimated current data (2020), and forecasts for 2027. The market is segmented on the basis of service type (concept/research, designing, prototyping, system integration and testing), location (in-house and outsourced), application (interior, exterior, and body engineering (body electronics, BIW and others), powertrain and exhaust (engine systems, electric systems and others), infotainment & connectivity (connectivity, HMI and others), chassis (braking system, steering system and others), safety systems (ADAS, passive safety and others), electrical, electronics and body controls, simulation, autonomous & connected cars (radar, adaptive control and others), vehicle type (passenger car and commercial vehicle), and geography. The study also evaluates industry competitors and analyses the market at a country level.
Based on service type, the prototyping services segment is estimated to command the largest share of the overall automotive engineering services market in 2020. However, the automotive designing engineering services segment is expected grow with the fastest growth rate over the forecast period. The rising demand for customized vehicles and increasing efficiency of software tools to design with utmost precision is augmenting the growth of the automotive designing engineering services market. Besides, the growing demand for environment friendly automobiles is also expected to help designing services to grow with rapid pace.
Based on location, the in-house segment is estimated to account for the largest share of the overall automotive engineering services market in 2020. However, the outsourcing segment is anticipated to grow with the fastest CAGR during the forecast period. The constant pressure to quickly design, prototype, manufacture, and launch new products in the marketplace, in response to ever-decreasing product lifecycle and greater demand, is placing a strain on the in-house engineering workforces and processes of companies and hence, the companies are now gradually shifting towards outsourcing of engineering services.
Based on application, the interior, exterior & body engineering segment is estimated to account for the largest share of the overall market in 2020. However, the autonomous and connected cars segment is projected to grow with the fastest growth rate during the forecast period. With the advent of autonomous and connected vehicles, companies and OEMs are pooling their R&D resources for designing and developing successful prototypes of autonomous vehicles, which is anticipated to boost the growth of this segment.
Based on vehicle type, the passenger car segment is estimated to account for the largest share of the overall market in 2020. The large share of this segment is due to the high adoption of sensors and utilization of vehicle data for autonomous driving and predictive maintenance. In addition, the increasing customer demand for safer and comfortable passenger vehicles has compelled OEMs to invest more in vehicle safety, advanced connectivity features, and smart infotainment systems which is driving the growth of this segment. However, the commercial vehicle segment is anticipated to grow with the fastest growth rate during the forecast period.
Geographically, Asia-Pacific region is estimated to command the largest share of the overall automotive engineering services market in 2020. Rising vehicle production, increasing demand for luxury vehicles, growing sales of electric cars, and technological development are some of the major factors supporting the growth of the automotive engineering services market in Asia Pacific region. However, North America region is estimated to grow with the fastest rate over the coming years.
The key players operating in the global automotive engineering services market are Altran Technologies (France), Akka Technologies (France), Bertrandt AG (Germany), EDAG Engineering GmbH (Germany), IAV GmbH (Germany), HCL Technologies Limited (India), Alten Cresttek (U.S.), L&T Technology Services Limited (India), and FEV Group GmbH (Germany), among others.
Meticulous Research was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, with the help of its unique research methodologies, the company has become the leading provider of premium market intelligence in North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa regions.