Automotive Engineering Services Market Is Estimated To Witness High Growth Owing To Increasing Demand For Electric Vehicles

The automotive engineering services market is expected to witness high growth due to the increasing demand for electric vehicles. The automotive engineering services market is expected to reach USD 270.21 billion by 2024 and is expected to register a CAGR of 7.6% during the forecast period 2024-2031, according to a new report published by Coherent Market Insights.

The growth of the automotive engineering services market is driven by increasing demand for electric vehicles and stringent emissions standards. The global automotive industry is undergoing major technological changes. With the increasing emphasis on electric vehicles (EV), most major automakers are investing heavily in EV development. Isso requires outstanding engineering services. In addition, the region’s strict emissions regulations are in place such as Europe and North America It is forcing operators to reduce vehicle weight and improve fuel efficiency.

Key Market Trends:

This has a positive impact on the demand for engineering services. Main market trends: One of the main trends in the automotive engineering services market is the development of connected and autonomous vehicles. Major assemblers and technology companies are investing billions in research and development of connected and autonomous vehicles. Automotive engineering suppliers play a key role in the development of advanced driver assistance systems.More coverage can be found in the sample copy.

Automotive Engineering Services Market Opportunities

The passenger cars segment held the largest share of the market in 2019 and is expected to grow at a CAGR of 6.2% during the forecast period. Increasing demand for sophisticated features and advanceddriver assistance systems in passenger cars is driving the growth of this segment.

The design and prototyping segment accounted for over 35% of the market in 2019. As automakers aim to reduce vehicle development time and costs, the demand for design and prototyping services is increasing. These services help automakers visualize, test and validate vehicle designs digitally before physical prototyping.

Key Market Takeaways

The automotive engineering services market size was valued at USD 270.21 Bn in 2024 and is anticipated to witness a CAGR of 7.6% during the forecast period 2024-2031. Growing complexity in vehicle designs and the need to integrate newer technologies is fueling the demand for outsourced engineering expertise.

On the basis of vehicle type, the passenger cars segment is expected to hold a dominant position, owing to the large production volumes and increasing demand for advanced features in passenger vehicles.

By service type, the design and prototyping segment is expected to lead the market through 2031, due to the need for automakers to reduce development cycles and validation costs.

Regionally, North America is expected to dominate the automotive engineering services market, due to presence of major automakers and engineering firms in the region.

Competitor Insights:

• Tata Technologies LTD
• Continental AG
• Harman
• Capgemini
• Ricardo

Recent Developments in Automotive Engineering Services Market

One of the biggest trends impacting the automotive engineering services industry is the widespread transition to electric vehicles (EVs). Automakers are aggressively pushing to develop battery electric and hybrid models to meet tightening emissions regulations and changing consumer demands. This has created surging demand for engineering expertise in areas like battery technology, powertrain design, charging infrastructure, and software/controls systems for EVs. Automotive engineering firms are assisting automakers with everything from conceptual design and modeling to testing, validation, and certification of new EV platforms. Many are also helping automakers establish strategic partnerships and sourcing agreements for critical EV components like batteries. The pace of EV adoption is expected to continue accelerating over the next two years, fueling tremendous engineering project work around battery technology advancements, range improvements, and manufacturing process refinements. Full coverage of the report available here.