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The market for outsourcing automotive engineering services was estimated at USD 84.87 billion in 2022, and from 2023 to 2030, it is anticipated to increase at a CAGR of 11.2%. Automotive manufacturers' escalating demand for more sophisticated connection solutions is propelling the market for automotive engineering services outsourcing (ESO). Due to its capacity to provide a number of services, including navigation, smart entertainment, passenger safety, and remote diagnostics, enhanced connectivity solutions are becoming more and more in demand.
The expansion of the automotive ESO market is anticipated to be fueled by the expanding technological capabilities of Engineering Service Providers (ESPs) to deliver research and development (R&D) and product innovation in their solutions for vehicle positioning, connected autos, and guidance systems. The government's increasing efforts to promote the use of green automobiles in order to reduce the emissions of dangerous gases are also fueling the expansion of the automotive ESO market.
The provision of mechanical services gave way to the incorporation of cutting-edge technological solutions like artificial intelligence (AI), the internet of things (IoT), and others in the automotive ESO sector. Rapid information technology (IT) integration into autos led to a surge in enhanced services that met commuter goals while also giving users comfort, safety, and ease of use. The integration of numerous improved features, including Bluetooth and Wireless Local Area Network (WLAN) connectivity, navigation, app connection, and other vehicle information from sensors, was made possible by IT.
The automobile industry concentrated on mass production when it first started using Engineering Service Providers (ESPs) to provide services, integrating standardisation, synchronisation, precision, continuity, and interchangeability. Companies increasingly prioritise providing mass customisation of vehicle production engineering services due to a paradigm shift in client demands. Opportunities for the expansion of the automotive ESO market are projected to arise from OEMs' rising preference for digitalized solutions. This is due to the end-users' paradigm shift in favour of more technologically advanced solutions. The Autonomous, Connected, Electric, and Shared Vehicles (ACES) disruptors are a digitalized business strategy being followed by the major industry players to enable enhanced mobility standards and improve consumer contact and experience with automobiles.
Advanced Driver Assistance Systems (ADAS), which include pedestrian recognition, collision warning, and other features, helped to advance autonomous driving. In order to improve vehicle dependability and passenger safety, increase fleet efficiency, enable maintenance schedules, and provide information to smart city planners and other road users about the travel, connected systems process data from an expanding suite of endpoint sensors at the edge and in the cloud. Automobile manufacturers have begun delivering lightweight automobiles to give better driving performance, minimise environmental pollution, enhance fuel efficiency, and lower fuel cost and frequency of auto repairs in light of the ongoing trend of convenience favoured by end customers. For instance, during the Ninth Aachen Colloquium China Automobile and Engine Technology, a technical exhibition, in November 2019, FEV Group GmbH unveiled solutions and technology for sustainable transportation.
The company unveiled a low-cost design kit for building lightweight vehicles and design development for A00 vehicles, which can be produced in annual series quantities of up to 7,000 vehicles. By reducing the vehicle's body and chassis weight by 50%, advanced materials such polymer composites, magnesium (Mg) alloys, high-strength steel, aluminium (Al) alloys, and carbon fibres help to minimise fuel consumption. Automobiles may carry more sophisticated pollution control systems, safety equipment, and electronic systems with greater integration thanks to the use of lightweight materials.
Report Coverage
Global Automotive Engineering Services Outsourcing research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Automotive Engineering Services Outsourcing report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Automotive Engineering Services Outsourcing competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Automotive Engineering Services Outsourcing market players and analyses their core competencies in each global market sub-segments.
Key Points Covered in the Report
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Automotive Engineering Services Outsourcing market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Automotive Engineering Services Outsourcing market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
AKKA; Altair Engineering Inc.; Alten Group; Altran (Cap Gemini Engineering); ARRK Product Development Group Ltd.; ASAP Holding GmbH; AVL List GmbH; Bertrandt AG; EDAG Group; ESG Elektroniksystem- und Logistik-GmbH; FEV Group GmbH; Horiba, LTD.; IAV; ITK Engineering GmbH Kistler Group; P3 group GmbH; RLE International Group
Primary Target Market
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. Spherical Insights has segmented the global Automotive Engineering Services Outsourcing market based on the below-mentioned segments:
Global Automotive Engineering Services Outsourcing Market, By Service
Designing
Prototyping
System Integration
Testing
Others
Global Automotive Engineering Services Outsourcing market, By Application
Autonomous Driving/ADAS
Body & Chassis
Powertrain and After-Treatment
Infotainment & Connectivity
Others
Global Automotive Engineering Services Outsourcing Market, By Location
On-shore
Off-shore
Global Automotive Engineering Services Outsourcing market, Regional Analysis
The expansion of the automotive ESO market is anticipated to be fueled by the expanding technological capabilities of Engineering Service Providers (ESPs) to deliver research and development (R&D) and product innovation in their solutions for vehicle positioning, connected autos, and guidance systems. The government's increasing efforts to promote the use of green automobiles in order to reduce the emissions of dangerous gases are also fueling the expansion of the automotive ESO market.
The provision of mechanical services gave way to the incorporation of cutting-edge technological solutions like artificial intelligence (AI), the internet of things (IoT), and others in the automotive ESO sector. Rapid information technology (IT) integration into autos led to a surge in enhanced services that met commuter goals while also giving users comfort, safety, and ease of use. The integration of numerous improved features, including Bluetooth and Wireless Local Area Network (WLAN) connectivity, navigation, app connection, and other vehicle information from sensors, was made possible by IT.
The automobile industry concentrated on mass production when it first started using Engineering Service Providers (ESPs) to provide services, integrating standardisation, synchronisation, precision, continuity, and interchangeability. Companies increasingly prioritise providing mass customisation of vehicle production engineering services due to a paradigm shift in client demands. Opportunities for the expansion of the automotive ESO market are projected to arise from OEMs' rising preference for digitalized solutions. This is due to the end-users' paradigm shift in favour of more technologically advanced solutions. The Autonomous, Connected, Electric, and Shared Vehicles (ACES) disruptors are a digitalized business strategy being followed by the major industry players to enable enhanced mobility standards and improve consumer contact and experience with automobiles.
Advanced Driver Assistance Systems (ADAS), which include pedestrian recognition, collision warning, and other features, helped to advance autonomous driving. In order to improve vehicle dependability and passenger safety, increase fleet efficiency, enable maintenance schedules, and provide information to smart city planners and other road users about the travel, connected systems process data from an expanding suite of endpoint sensors at the edge and in the cloud. Automobile manufacturers have begun delivering lightweight automobiles to give better driving performance, minimise environmental pollution, enhance fuel efficiency, and lower fuel cost and frequency of auto repairs in light of the ongoing trend of convenience favoured by end customers. For instance, during the Ninth Aachen Colloquium China Automobile and Engine Technology, a technical exhibition, in November 2019, FEV Group GmbH unveiled solutions and technology for sustainable transportation.
The company unveiled a low-cost design kit for building lightweight vehicles and design development for A00 vehicles, which can be produced in annual series quantities of up to 7,000 vehicles. By reducing the vehicle's body and chassis weight by 50%, advanced materials such polymer composites, magnesium (Mg) alloys, high-strength steel, aluminium (Al) alloys, and carbon fibres help to minimise fuel consumption. Automobiles may carry more sophisticated pollution control systems, safety equipment, and electronic systems with greater integration thanks to the use of lightweight materials.
Report Coverage
Global Automotive Engineering Services Outsourcing research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Automotive Engineering Services Outsourcing report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Automotive Engineering Services Outsourcing competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Automotive Engineering Services Outsourcing market players and analyses their core competencies in each global market sub-segments.
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2017-2030 |
| Base Year | 2020 |
| Forecast Period | 2022-2030 |
| Historical Period | 2017-2019 |
| Unit | Value (USD Billion) |
| Key Companies Profiled | AKKA; Altair Engineering Inc.; Alten Group; Altran (Cap Gemini Engineering); ARRK Product Development Group Ltd.; ASAP Holding GmbH; AVL List GmbH; Bertrandt AG; EDAG Group; ESG Elektroniksystem- und Logistik-GmbH; FEV Group GmbH; Horiba, LTD.; IAV; ITK Engineering GmbH Kistler Group; P3 group GmbH; RLE International Group |
| Segments Covered | • By Product |
| Customization Scope | Free report customization (equivalent to up to 3 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Key Points Covered in the Report
- Market Revenue of Automotive Engineering Services Outsourcing Market from 2021 to 2030.
- Market Forecast for Automotive Engineering Services Outsourcing Market from 2021 to 2030.
- Regional Market Share and Revenue from 2021 to 2030.
- Country Market share within region from 2021 to 2030.
- Key Type and Application Revenue and forecast.
- Company Market Share Analysis, Automotive Engineering Services Outsourcing competitive scenario, ranking, and detailed company
profiles. - Market driver, restraints, and detailed COVID-19 impact on Automotive Engineering Services Outsourcing
Market
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Automotive Engineering Services Outsourcing market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Automotive Engineering Services Outsourcing market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
AKKA; Altair Engineering Inc.; Alten Group; Altran (Cap Gemini Engineering); ARRK Product Development Group Ltd.; ASAP Holding GmbH; AVL List GmbH; Bertrandt AG; EDAG Group; ESG Elektroniksystem- und Logistik-GmbH; FEV Group GmbH; Horiba, LTD.; IAV; ITK Engineering GmbH Kistler Group; P3 group GmbH; RLE International Group
Primary Target Market
- Market Players of Automotive Engineering Services Outsourcing
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. Spherical Insights has segmented the global Automotive Engineering Services Outsourcing market based on the below-mentioned segments:
Global Automotive Engineering Services Outsourcing Market, By Service
Designing
Prototyping
System Integration
Testing
Others
Global Automotive Engineering Services Outsourcing market, By Application
Autonomous Driving/ADAS
Body & Chassis
Powertrain and After-Treatment
Infotainment & Connectivity
Others
Global Automotive Engineering Services Outsourcing Market, By Location
On-shore
Off-shore
Global Automotive Engineering Services Outsourcing market, Regional Analysis
- Europe: Germany, Uk, France, Italy, Spain, Russia, Rest of Europe
- The Asia Pacific: China,Japan,India,South Korea,Australia,Rest of Asia Pacific
- South America: Brazil, Argentina, Rest of South America
- Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa
About This Research
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