PUBLISHER: SkyQuest | PRODUCT CODE: 1286000
PUBLISHER: SkyQuest | PRODUCT CODE: 1286000
Automotive Engineering Services Market size was valued at USD 19.19 billion in 2021 and is poised to grow from USD 19.55 billion in 2022 to USD 28.85 billion by 2030, growing at a CAGR of 5.7% in the forecast period (2023-2030).
Vehicle engineering is a subset of automotive engineering services that includes automotive electronics, electrical, software, mechanical, and advanced safety engineering. Automotive engineering services play a significant role in the development, design, manufacture, and operation of both passenger automobiles and commercial vehicles. These services are intended to improve industrial processes and reduce expenses as well. The increased demand for advancements in in-vehicle technology that would allow for higher penetration of services like smart infotainment and remote diagnostics as well as improved connection solutions will be a major driver of market growth. One of the major challenges is that new inventions take a long time and money to develop and that intellectual property rules prevent service providers from continuously utilising the technology that is already accessible.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Engineering Services Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Segments covered in this report:
The global automotive engineering services market segmentation by service type, application, and region. Based on service type, the market is segmented into designing, prototyping, system integration, and testing. Based on application, the market is segmented into ADAS & safety, electrical, electronics & body controls, chassis, connectivity services, interior, exterior & body engineering, powertrain & exhaust, simulation, and others. Based on region the global automotive engineering services market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Driver
OEMs and Tier 1 partners in the automobile industry have made large investments in the creation of the next generation of connected vehicles. Ultrasonic sensors, high-definition cameras, and IoT devices are common in luxury sedans and SUVs. These numerous elements work together to create an ecosystem that can exchange data and communicate with the outside world to enhance the in-car experience. The information is processed by an inbuilt computer to provide a range of features, such as smooth navigation and customised infotainment systems. The information can be used to forecast engine problems, set up maintenance, and assess the condition and health of the car.
Restraint
Among OEMs, Tier 1 suppliers, and system integrators in the automotive industry, outsourcing is currently a common practise. An engineering service often goes through planning and testing stages before final manufacturing, starting with a concept or study phase. In other cases, the OEM is the proprietor of new intellectual property for techniques or innovations that surfaced over the whole process. Service providers may still work with numerous OEMs for the same requirements or specifications, despite the restriction of using the present technology that many OEMs have already copyrighted. Therefore, service providers must exercise extra caution when abiding by IP infraction rules. It costs a lot of money and effort to innovate in the automotive sector. Engineering service technology use may be constrained by IP rules that forbid service providers from repurposing a technology.
The global auto industry has been put on hold due to the COVID-19 pandemic lockdown, which has a negative impact on the supply of automotive engineering services. The labour scarcity has also had an effect on the market for automotive engineering services since COVID-19 has restricted travel and made individuals keep their social distance from one another. Additionally, COVID-19 had a positive impact on the market for electric vehicles because more electric vehicles were sold than the year before. So it is projected that increased purchases of electric vehicles will fuel market growth throughout the epidemic. The COVID-19 outbreak also had a negligible effect on the market in comparison to the automotive market.
Market Trends
Autonomous vehicles are those that operate without a driver and can navigate on their own by detecting their surroundings. Autonomous vehicles need cutting-edge automotive engineering services to respond to outside circumstances and alter their driving. These vehicles contribute to increasing road safety and reducing collisions between vehicles that are the result of human error.
Automated cars have the potential to lower the amount of fatalities because it is expected that software will make fewer mistakes than people. reduced human behaviour also implies fewer barriers and reduced traffic congestion as a result of accidents. For instance, autonomous vehicles provide a more comfortable form of transportation for those who are unable to drive owing to a disability or senior age. For instance, Ford is among the top companies working to develop driverless cars in the globe. The introduction of fully driverless vehicles is anticipated towards the end of 2022. Therefore, as demand for autonomous vehicles rises, it is projected that the market for automotive engineering services will expand dramatically.