The automotive engineering services market size is predicted to surpass US$ 360.22 billion by 2030 with a growing CAGR of 8.7% from 2022 to 2030.
The automotive engineering services market is expected to be driven by the growing technological skills for engineering service providers to offer research and development and product innovation in their solutions for connected automobiles, vehicle positioning, and guidance systems. In addition, the automotive engineering services market’s overall growth is likely to benefit from original equipment manufacturers rapid shift in preference for digital solutions over mechanical and core assistance.
However, due to the depth and complexity of the powertrain, transmission, and engine designs, manufacturers prefer to design these components in-house rather than outsourcing them to engineering services providers.
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Furthermore, growing problems about the exposure of intellectual property and design are prompting original equipment manufacturers to establish their own manufacturing facilities. As a result, the automotive engineering services market’s growth is expected to be hampered by manufacturers’ increasing focus on producing in-house design.
Report Highlights
Report Coverage | Details |
Market Size by 2030 | USD 360.22 Billion |
Growth Rate from 2022 to 2030 | CAGR of 8.7% |
Base Year | 2021 |
Largest Market | Europe |
Fastest Growing Market | Asia Pacific |
Forecast Period | 2022 to 2030 |
Segments Covered | Location, Service, Application, Nature, Vehicle, Geography |
Drivers: Standardization of safety features
Several governments around the world have mandated safety features in new vehicles to reduce over speeding and fatal accidents. The advanced safety features include advanced emergency braking, emergency lane-keeping systems, and enhanced crash tests. All of these requirements are critical to overall road safety. To improve passenger safety, automakers must comply with the new regulations. In the coming years, all of these mandates will have a significant impact on vehicle safety. The original equipment manufacturers’ initiatives to implement these features early will result in a high demand for engineering service providers to provide these solutions.
Restraints
Security threats
The automotive engineering services play a significant role in vehicle advanced driver-assistance system technologies. The majority of advanced driver-assistance systems safety features include sensors like radar, ultrasonic sensors, cameras, infrared, and various actuators. The precise of fail-safe techniques could put occupant safety at danger. Thus, the security is very important for the occupant. Hence, this factor could hamper the growth of the global automotive engineering services market during the forecast period.
Opportunities
Rising sales of electric vehicles
The global e-vehicle industry is rapidly expanding. Electric vehicles, like any transformative disruptive technology, activate lots of new influential economic development, challenges, and opportunities. The global electric vehicle sales are being driven by increasing vehicle range increased charging infrastructure availability and proactive participation by automotive original equipment manufacturers. Furthermore, the growing sensitivity of various governments toward a cleaner environment has increased demand for zero-emission vehicles, which is supporting the growth of the electric vehicle market. The developed countries are actively promoting the use of electric vehicles to reduce emissions, which has resulted in increased sales of electric vehicles. As a result, the rising sales of electric vehicles are creating lucrative opportunities for the growth of the automotive engineering services market.
Challenges
Intellectual property rights
The outsourcing is now widely used by original equipment manufacturers and system integrators in the automotive industry. A typical engineering service begins with research and progresses through design and testing phases before reaching the final stage of production. In some cases, the original equipment manufacturer owns the intellectual property of new technology or processes developed throughout the process. However, service providers may be working with multiple original equipment manufacturers for similar requirements or specifications, with the limitation of using existing technology patented by various original equipment manufacturers. As a result, service providers must exercise extreme caution when it comes to intellectual property infringement laws. Intellectual property laws prohibit service providers from repeatedly using the same technology, which may limit the use of their engineering service technology.
Read Also: Electric Vehicle Charging Station Market to Hit US$ 344.61 Bn by 2032
Segments Covered in the Report
By Location
By Service
By Application
By Vehicle Type
By Nature
By Geography
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